About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, December 14th, 6:30PM
rss
Latest Headlines

Market blues for investors

Investors are not rushing back into the market after the easing of the LVRs, with new mortgage lending running low and pessimism settling over the industry.

Thursday, March 1st 2018, 10:00AM

by Miriam Bell

Of late, there has been some speculation that investor confidence might be on the rise, with the latest Crockers’ Auckland rental index suggesting a rise in the proportion of investors planning to add to their portfolio.

But new Reserve Bank mortgage lending data indicates that the slight easing of the LVRs from the start of January has not yet prompted hordes of investors to rush back into the market.

The Reserve Bank data shows that new mortgage lending in January came to a total of $3.696 billion, which is the lowest level since January 2017.

Investors’ accounted for $783 million of the new mortgage lending total, which was down on the $1.066 billion they borrowed in December.

It was also the lowest amount that investors have borrowed since the Reserve Bank started releasing the data in August 2014 – and that includes the previous low of $844 million set last January.

On top of this, investors’ share of the total lending remains low at around 21%.

This is significantly down on the 35% share they had back in June 2016, prior to the introduction of the Reserve Bank’s investor-focused LVRs.

Alongside the subdued investor lending trend, uncertainty over what might happen with new housing policies, like the Healthy Homes legislation and potential tax changes, is weighing heavily on investors.

Auckland Property Investors Association vice-president Peter Lewis is pessimistic about the current climate for investors.

The current housing policy drift is illogical and works on the assumption that rental properties and landlords are the problem with the housing market, he says.

“Instead of the government saying ‘how can we make life harder for landlords’ they should be saying ‘how can we make supplying rental properties more attractive’.

“Because if they make it harder for people to supply property then it is going to impact on the supply, the prices and, ultimately, the tenants.”

Lewis says that some investors are starting to get out of the residential market and, although they tend to be hobby or accidental landlords, those landlords make up the bulk of the market.

“If 20 to 30 per cent of those landlords decide to exit the market that will have a significant, negative impact on the rental market.”

Landlords exiting the rental market are moving into the provision of short-term rental accommodation, commercial property or simply selling up, he adds.

« Growth outlook overshadows OCR callInvestor mortgages creeping up »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.79 4.55 4.79 4.99
ANZ Special - 4.05 4.29 4.49
ASB Bank 5.80 4.44 4.69 4.89
ASB Bank Special - 3.95 4.29 4.49
BNZ - Mortgage One 6.50 - - -
BNZ - Rapid Repay 5.95 - - -
BNZ - Special - 4.10 4.29 4.49
BNZ - Std, FlyBuys 5.90 4.69 4.79 4.99
BNZ - TotalMoney 5.90 - - -
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.15 5.20 5.25 -
Lender Flt 1yr 2yr 3yr
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.70 4.85 -
Housing NZ Corp 5.80 4.69 4.79 4.79
HSBC Premier 5.89 3.99 4.19 4.69
HSBC Premier LVR > 80% - 3.79 - -
HSBC Special - - - -
Lender Flt 1yr 2yr 3yr
ICBC 5.80 4.59 4.69 5.09
Kiwibank 5.80 4.55 4.69 4.99
Kiwibank - Capped - - - -
Kiwibank - Offset 5.80 - - -
Kiwibank Special - 4.05 4.29 4.49
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 6.10 5.10 5.45 -
Resimac 5.30 4.86 4.94 5.30
RESIMAC Special - - - -
SBS Bank 5.89 4.85 5.05 4.49
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 4.19 3.95 4.49
Sovereign 5.90 4.45 4.69 4.89
Sovereign Special - 3.95 4.29 4.49
The Co-operative Bank - Owner Occ 5.75 4.10 4.35 4.49
The Co-operative Bank - Standard 5.75 4.60 4.85 4.99
TSB Bank 5.80 4.45 4.69 4.99
TSB Special - 3.95 4.19 4.49
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.95 4.69 4.79 5.19
Westpac - Offset 5.95 - - -
Westpac Special - 4.15 4.29 4.59
Median 5.89 4.50 4.69 4.79

Last updated: 2 December 2018 8:39pm

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com