Investors over-represented in mortgagee sales

Friday 26 April 2013

More than 650 small-scale property investors were forced to sell properties last year, new data reveals.

By The Landlord

New Zealand's hot property market has resulted in a drop in the number of stricken property owners being forced into a mortgagee sale - but small-scale investors made up the bulk of them.

The rate of mortgagee sales is now at a four-year low, according to Terralink.

In the December quarter of 2012, there were 461 mortgagee sales, 11% fewer than the previous quarter and almost a quarter fewer than the same time the year before.

For the whole of 2012, there were 2106 mortgagee sales. That is the lowest rate since 2008 and almost a third less than were reported in 2009.

Small-scale investors make up the bulk of mortage sales. Those with a portfolio of more than one but fewer than five properties represented 31% of mortgagee sales, or about 650.

Single-home owners were only 15%.

Most of the mortgagee sales were outside Auckland, reflected the strength of the country's biggest city's property market. Almost 80% of them are now outside Auckland, compared to just over half in 2007.

Comments from our readers

No comments yet

Sign In / Register to add your comment

House Prices

Values pick up the pace

There’s a more upbeat feel to the property market and it’s obvious in this month’s QV data which has values firmly on the rise.

Commercial

Commercial disrupter proves popular

New commercial property disrupter, Jasper, has hit the ground running with their first investment offering achieving full subscription in just 36 hours.

Mortgages

Putting the RBNZ's new capital rules into perspective

There's been a lot written about the Reserve Bank's new capital rules for banks and some of it seems to miss the mark. Here's Tarawera Publishing managing director, Philip Macalister's, take after hearing from the governor yesterday.

Site by PHP Developer