Reserve Bank's Announcement Welcomed
“The NZ Property Investors' Federation (NZPIF) is pleased with the Reserve Bank's announcement that LVR restrictions are to be eased for home buyers and rental property providers” says Andrew King, executive officer of the NZPIF
Indicators, such as Trade Me's rental property listings, are showing that we have an undersupply of rental property.
As the private sector supplies around 85% of rental properties in New Zealand, removing or not initiating extra factors that hinder an increase in the supply of rental properties is welcomed.
When a rental property is sold to a first home buyer, many think that this is a good thing, assuming that one less rental property means you have one less tenant. However the average number of people per rental property is 3.9, while it is 2.1 for owner occupied home. When a rental property is sold to a first home buyer, it means on average, that 1.8 tenants still need to find another home to rent.
For further information please contact:
Executive Officer, NZ Property Investors’ Federation
Ph: (09) 815 8645, Mobile: 021 216 1299