“Property investor lending continued to decrease, falling to 16.8 per cent of total lending in December 2021 from 24.7 per cent a year earlier. Lending to property investors in January 2022 was 51 per cent lower when compared to lending in January 2021, falling to $812 million,” KPMG noted.
Finance Minister Grant Robertson has said the changes would tilt the balance of the property market towards first-home buyers.
Where does this government think renters are going to live? Their focus is on helping first home buyers, great, but before you become a first home buyer you need to rent somewhere while you save your deposit. Private landlords currently own 1.4 million rental properties in NZ. With the laws in place now disincentivising rental investment, the number of private rentals will fall. And I don’t believe for a minute that just because landlords don’t buy, first home buyers will be able to buy more. We will still have the same number of people who either don’t earn enough to save for a deposit, or simply aren’t disciplined enough to save. And even if people save the deposit amount, it doesn’t mean banks will give them a mortgage. You need to have good credit history, well paying jobs and show you can commit to paying your interest and mortgage payments on time.
There will be many Kiwis who rent for life, simply because houses are so expensive, are they all expected to queue up for a Housing NZ homes?
Source: NZ Herald
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