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.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news