First home buyers close gap on investors
A total of $4.05 billion was borrowed by New Zealand home buyers last month, during the seasonally quiet January period. This compares to $3.69 billion in January 2018, and $3.53 billion in January 2017.
First home buyers borrowed $700 million, representing 17.3% of the total. While investors borrowed $726 million, about 17.9% of the overall total.
In contrast to last month, investors accounted for about 21% of all borrowing in January 2018, with first home buyers making up just over 15% of the total.
FHBs are quickly closing the gap on investors, having previously been kept out of the market by high prices, reduced lending appetite and LVR restrictions. Yet investor activity has been subdued in recent months, amid ongoing LVR restrictions, the threat of a capital gains tax, and other initiatives to curb the investor market, such as the ringfencing of rental losses.
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