Property

Why target investors?

Property investors have hit back at suggestions Government would support new lending rules for property investors.

Wednesday, February 18th 2015

Finance Minister Bill English told media he had seen the Reserve Bank’s comments about the prospect of new rules restricting lending to investors and understood it was consulting with banks about how this would work.

He said the plan would get political backing.

"We support the bank following its legislative mandate, paying attention to financial stability, taking the measures they believe are required," he said.

Labour's housing spokesman, Phil Twyford, said his party supported a crack-down on investors but the best way to help the Auckland housing market was to boost supply.

NZ Property Investors Federation executive officer Andrew King asked whether there was a case to target property investors.

“Rental property loans are actually less risky than many of the loans taken out against homes to fund businesses,” he said.  “There are really two issues here - more clearly classifying residential loans and whether these different loans are more risky. We think more clearly classifying residential loans has merit, but rental property isn't any more risky than owner occupied property and is certainly a lot less risky than business loans.”

He said unnecessary risk weighting rules on rental properties would increase the cost of borrowing and make rents more expensive.

“Surely the Reserve Bank and Government should be supporting the efforts of our members to improve the accommodation shortfall and not making it difficult to provide homes for tenants.”

Comments

No comments yet

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

More Stories

Support for regulation

Monday, March 18th 2024

Support for regulation

REINZ has emphasised the need for property management regulation to Parliament’s Social Services and Community Committee.

A better investment market

Thursday, March 14th 2024

A better investment market

“Reinstatement of interest deductibility starting from the new tax year on 1 April brings property investors back in line with every other business in the country, where interest costs are a legitimate deductible expense," Tim Horsbrugh, New Zealand Property Investors Federation (NZPIF) executive committee member says.

[OPINION] Recessionary times

Thursday, March 14th 2024

[OPINION] Recessionary times

It is not the best out there for many businesses and property sector people. Sales are down across the board, our clients’ confidence is falling, and there is a lot of uncertainty.

Interest rate expectations: It’s not over yet

Thursday, March 07th 2024

Interest rate expectations: It’s not over yet

Most Kiwis think interest rate increases have peaked.