Interest Rise Good News for Landlords?

Saturday 7 February 2004

Landlords should probably be applauding Reserve Bank Governor Alan Bollard's recent interest rate rise.

By The Landlord

Not that he expects it. Far from it. Central bankers "have been likened to dismal souls that take away the punch bowl just when the party is getting boisterous", he said in a recent speech.

And at first glance, owners of rental properties are probably angry.

The rise in the official cash rate will push up mortgage interest rates. That, in turn, will put downward pressure on house prices, which become less attractive if they are more expensive to finance.

But both of those trends may actually help landlords.

Read More - Opens in a new window
Commenting is closed

Property News

Return to market form

There’s been a rallying of the market with the latest REINZ data showing both sales volumes and median house prices noticeably up with the onset of Spring.

House Prices

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.


NZ proptech start-up scores major investor

Auckland-based commercial property disrupter, Jasper, has raised $2.3 million in seed funding following investment from European asset manager M7 Real Estate.


LVR limits slow down investors

LVR speed limits continue to have a "strong effect" on investors, according to CoreLogic, after the latest Reserve Bank data showed a drop in investor borrowing.

Site by PHP Developer