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

 

Property Institute welcomes LVR tweak


05 September 2016

Property Institute welcomes LVR tweak


Property Institute of New Zealand Chief Executive, Ashley Church, says today's decision, by the Reserve Bank, to relax Loan to Value (LVR) restrictions on investors building new homes is an important step in the right direction.

The new rules, which take effect on 1 October, mean that all purchasers, including property investors, will be exempt from the LVR rules if they are buying, or building, a new dwelling.

Mr Church said that the Institute had been pushing for this change for some time and he was pleased to see that its position had been adopted.


"We've always argued that increasing supply is the most important step towards addressing the challenges facing the Auckland housing market - but achieving that will require a massive increase in investment by the private sector".

"The previous rules provided no incentive to investors to direct their capital into the right places - but this policy change will take us a step closer toward making that happen".

However, Mr Church cautioned that the new policy was still not enough to encourage investors to start investing in new dwellings in large numbers.

"We need a massive change in investor behavior. This tweak will help, but it's not enough, on its own".

Mr Church also repeated his previous claim that house price inflation will not start to taper off until there is a significant increase in supply.

"The supply issue is fixable but it will take a co-ordinated approach by the Reserve Bank, Government and Councils to make it happen".


Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Up 0.5% In June Quarter: Services Lead GDP Growth

“Service industries, which represent about two-thirds of the economy, were the main contributor to GDP growth in the quarter, rising 0.7 percent off the back of a subdued result in the March 2019 quarter.” More>>

ALSO:

Pickers: Letter To Immigration Minister From Early Harvesting Growers

A group of horticultural growers are frustrated by many months of inaction by the Minister who has failed to announce additional immigrant workers from overseas will be allowed into New Zealand to assist with harvesting early stage crops such as asparagus and strawberries. More>>

ALSO:

Non-Giant Fossil Disoveries: Scientists Discover One Of World’s Oldest Bird Species

At 62 million-years-old, the newly-discovered Protodontopteryx ruthae, is one of the oldest named bird species in the world. It lived in New Zealand soon after the dinosaurs died out. More>>

Rural Employers Keen, Migrants Iffy: Employment Visa Changes Announced

“We are committed to ensuring that businesses are able to get the workers they need to fill critical skills shortages, while encouraging employers and regions to work together on long term workforce planning including supporting New Zealanders with the training they need to fill the gaps,” says Iain Lees-Galloway. More>>

ALSO:

Marsden Pipeline Rupture: Report Calls For Supply Improvements, Backs Digger Blame

The report makes several recommendations on how the sector can better prevent, prepare for, respond to, and recover from an incident. In particular, we consider it essential that government and industry work together to put in place and regularly practise sector-wide response plans, to improve the response to any future incident… More>>

ALSO: