Xtra News Community 2
August 19, 2017, 12:54:01 pm
Welcome, Guest. Please login or register.

Login with username, password and session length
News: Welcome to Xtra News Community 2 please also join our XNC2-BACKUP-GROUP.
 
  Home Help Arcade Gallery Links BITEBACK! XNC2-BACKUP-GROUP Staff List Login Register  

First home buyers should be exempt from LVR regulations


Pages: [1]   Go Down
  Print  
Author Topic: First home buyers should be exempt from LVR regulations  (Read 9 times)
Donald
Bloody-Good Member
*
Posts: 373



« on: August 11, 2017, 04:37:48 pm »

....good idea...the LVR restrictions are designed to stop investors...but first home buyers are innocent victims and should be exempt...


REINZ wants loan-to-value restrictions lifted for first-home buyers

Real Estate Institute chief executive Bindi Norwell says LVR rules are stopping young people buying houses.
JOHN BISSET/STUFF


The Real Estate Institute is calling for a review of loan-to-value restrictions as property market turnover drops to its lowest non-Christmas level since 2014.

The number of properties sold across New Zealand in July fell by a quarter when compared to the same time last year, and the number of properties sold in Auckland fell by 30.6 per cent, the institute's latest data shows.

That is the lowest level of sales, apart from Christmas periods, since August 2014.

Auckland is one of three regions where prices have fallen.
SIMON MAUDE/STUFF


"The number of sales across New Zealand has dropped significantly in comparison to the same time last year," chief executive Bindi Norwell said.

READ MORE:  Auckland house prices grind to a halt as buyers shut out of the market: QV

"A key reason for this is that the two biggest hurdles to purchasing a house right now are access to finance as the banks continue to tighten their lending criteria and LVR restrictions. This creates an intimidating barrier to entry to the real estate market, particularly for those saving for their first home."

LVR restrictions were introduced in 2013 for all buyers, limiting the amount of lending that banks can do to borrowers with a deposit of less than 20 per cent, to no more than 10 per cent of total lending.

Last year, new LVR rules were brought in for investors, removing their ability to borrow with less than 40 per cent equity.

"No matter where we are in the country, agents tell us that there are a good number of buyers out there, but that these two issues are impacting both investors and first-time buyers alike. When you throw in an election, winter, school holidays and one of the wettest Julys on record, it's little wonder the number of properties sold last month fell so significantly," Norwell said.

"The LVR restrictions have done their job of slowing the market, but now it seems they are acting as a handbrake which is why REINZ is calling for LVRs to be reviewed for first-time buyers."
....
Stuff
Report Spam   Logged

Social Buttons

aDjUsToR
Member
*
Posts: 144


« Reply #1 on: August 11, 2017, 08:11:51 pm »

I believe it's to prevent a housing loan based bad recession like the GFC. The reason house prices are only affordable to those who leaped first into the great housing "investor" Ponzi Scheme is because lazy, dumb and short sighted governments decided it would be a neat way to make the books look good for their term of office. All the bait for property infestors needs to be taken off the table and bait should be offered to instead invest in infrastructure and industry.
Report Spam   Logged
aDjUsToR
Member
*
Posts: 144


« Reply #2 on: August 11, 2017, 08:14:28 pm »

Maybe also shut the doors on the international garage sale of nz housing stock?
Report Spam   Logged
Donald
Bloody-Good Member
*
Posts: 373



« Reply #3 on: August 11, 2017, 09:37:48 pm »

Have to disagree...

The housing prices have been proved over and over again from all and sundry to be mainly a problem of land availability, especially in Auckland...the leftie councils do nothing about it...even Goff now is doing nothing to free up land...makes you wonder how they sleep🙄

...first home buyers should be the group who are able to get a break and get into a property with less than 40% that investers need to put up....the policy seems to be working....the figures are showing a sharp downturn in Auckland property sales and slight decline in prices in some areas
Report Spam   Logged

Pages: [1]   Go Up
  Print  
 
Jump to:  

Powered by EzPortal
Open XNC2 Smileys
Bookmark this site! | Upgrade This Forum
SMF For Free - Create your own Forum

Buy traffic for your forum/website
traffic-masters
Powered by SMF | SMF © 2016, Simple Machines
Page created in 0.047 seconds with 11 queries.