First-home buyers rush in
It is believed that the Reserve Bank will introduce a “speed limit” on the amount of low-deposit lending banks do, probably at the end of September.
Broker Jeff Royle said it was a flawed idea because less than 10% of all purchases had been with a deposit of 10% or less. The problem was a lack of supply, he said.
“By even mentioning these proposals all that’s happened is a panic amongst ordinary Kiwi first home buyers who are calling me and I guess others, scrambling to ‘get in’ before the restrictions take place. Whether they do or don’t doesn’t matter, it’s the threat that counts. All this does is push prices further and more dangerously, makes first-home buyers take huge risks in bidding at auctions when they really should not.”
He said he had had to dig at least one buyer out of a hole caused by fear of missing out. “The real estate industry has a lot to answer for when promoting auctions as a way to sell ordinary property. With some exceptions the only ‘winner’ at an auction is the agent.”
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[Weekly Wrap] KiwiSaver in play; but outcome unclear](https://goodreturns.publit.io/file/c_fill,w_300,h_200/0ad582e4-c9a3-4692-bbe2-62d928f77fd2.jpg)