Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Positive economy not LVRs drives interest in rentals

Positive economy not LVRs drives interest in rental investment

The Bank of New Zealand’s Nine Rewards Consumer Trends Survey indicates that interest in buying residential rental property has almost doubled since the LVRs were introduced. However it is important to note that 553 respondents is not a large sample for a general consumer survey, and the result may be due to a statistical variation rather than to a response to the LVR restrictions.

“Data from our own survey conducted in the last two weeks would point to this being the case,” said Andrew King, Executive Officer of the NZ Property Investors’ Federation (NZPIF).

71% of the NZPIF respondents said that the LVR restrictions have had no effect on their buying decisions. Although 8% said they would probably buy more property because of the LVR restrictions, 13.5% said that these restrictions would cause them to buy fewer rental properties.

“I think this demonstrates that the LVR restrictions will be positive for some investors”, said King. “However it will have a negative affect on a higher number of investors who probably don't have enough equity under the new rules to make further property purchases.”

Assuming that the increased interest in buying rental property is in fact an on going trend, it is more likely to be a response to positive economic reasons rather than the LVR restrictions. For example, there is a shortage in the supply of new properties, more people are migrating to New Zealand, fewer New Zealanders are leaving the country, confidence in the economy is growing, and there are low interest rates plus upward pressure on rental prices.

King says that the combination of these factors is probably the real reason for a higher interest in rental property, rather than LVR restrictions.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news