Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


New home deposit rules could turn off 22% of investors

Media release
Horizon Research
July 20, 2016

New home deposit rules could turn off 22% of investors

The Reserve Bank’s move to increase the deposit needed for investors to buy a home above 30% will have a significant impact on the market.

New research finds 22% of those who said they were definitely going to buy an investment property during the next 12 months would no longer buy if deposits go above 30%.

Another 21% of definite investors said they would delay buying. 34% would still buy and 24% were unsure, according to new findings from nationwide surveying by Horizon Research.

The Reserve Bank announced on July 19, 2016, it is consulting on increasing the deposit rate for all but 5% of loans banks make to investors to 40%. The new policy would apply nationwide.

Horizon says the new policy will have a slightly greater impact in the Aucklandmarket: 29% of the Auckland respondents definitely looking to buy an investment property said they would not buy if the deposit required increased above 30%. 17% said they would delay buying, while 27% said they would still buy.

If the amount of deposit needed to raise a loan for a property were to rise above 30% for investors how would that impact you?ALLDefinitely looking to buy an investment property
I would not buy28%22%29%
I would have to delay buying14%21%17%
I would still buy17%34%27%
I really don't know42%24%26%
N (unweighted)1,8174722

Horizon conducted the survey of 1817 adults nationwide in the two weeks ending July 14.
It has a maximum margin of error overall of +/- 2.3%.

Results for “definite” buyers were chosen for the analysis instead of including those who said they “may buy” because Horizon’s research over the past six years on property selling and buying has indicated that the “definite” respondents give a better indication of likely property sales trends.

Horizon says it is also looking at the potential impacts of any Reserve Bank decision to restrict borrowing in relation to household income.

Preliminary findings indicate, on a national basis, respondents who were looking to buy an investment property in the next 12 months were slightly more in favour of implementing debt to income ratios in addition to controlling deposits than those who were looking to buy a home to live in. However, a majority of those in Auckland who were looking to buy an investment property were in favour of only controlling deposits and not implementing debt to income ratios.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Another Reason To Loathe HR Departments (And On The Teachers Strike)

This morning’s news item about Police emergency call centre staff turning up for work while they’re sick – because they’re afraid their sick leave statistics will be used against them, and their jobs put in jeopardy – is not an isolated case...

Obviously, sick people shouldn’t be being treated by doctors and nurses who are themselves sick and potentially infectious. Similarly, Police emergency calls also need to be fielded by people who’re feeling alert, and on top of their game. More>>


MPs' Computers To Be Searched: Inquiry Into Leak On Simon Bridges' Expenses

An inquiry has been launched to find out who leaked the National Party's expenses to the media... Parliament's speaker, Trevor Mallard, said a Queen's Counsel would lead the inquiry with the help of an employment lawyer and also someone with forensic IT skills. More>>


Teachers Strike: Nationwide Rallies And Marches

Teachers and principals voted for a full day strike to be held on 15 August to send a strong message to the Government that the current collective agreement offers from the Ministry of Education would not fix the crisis in teaching. More>>


Wellington.Scoop: City Council Ends Its Support For Jackson’s Movie Museum

The Wellington City Council and the Movie Museum Limited have today announced a mutually-agreed parting of the ways for a joint project between the Council’s Convention Centre and TMML’s Movie Museum... Both parties remain optimistic for the future of their respective projects. More>>

Pay Equity: Historic Settlement For Education Support Workers

The New Zealand Educational Institute (NZEI) and the Ministry of Education today signed Terms of Settlement to address a pay equity claim for 329 support workers who work with very young children in early childhood and primary schools. More>>


Gordon Campbell: On The Stereotypes About Jacinda Ardern

Routinely, female politicians get depicted as either show ponies or battle axes, with little room for anything else in between. .. More>>

Weekend Interviews: "Discriminatory And Racist" Aussie Deportations

The former president of Australia’s Human Rights Commission Gillian Triggs says deportations have risen dramatically in Australia since 2014 when ministers and ministerial delegates were given the power to cancel visas - and half of those being deported are New Zealanders. "These are massive numbers, actually escalating dramatically."... More>>


Legal Challenge: Prisoner Has 9 Boxes Of Documents Seized

Human rights organisation People Against Prisons Aotearoa says a prisoner they advocate for has had 9 boxes of legal documents seized from him just days before his case against the Department of Corrections was to be heard. More>>

Single-Use Plastic Bags: Govt To Phase Them Out

Single-use plastic shopping bags will be phased out over the next year, Prime Minister Jacinda Ardern and Associate Environment Minister Eugenie Sage announced today. More>>





Featured InfoPages