Investors over-optimistic on price growth - ANZ
ANZ’s latest Property Focus report is out and it explores the findings of the bank’s 2016 property investors’ survey.
In the survey, investors generally had high expectations for continuing growth in house prices around the country.
At the same time, nearly a third of investors said the new LVR rules had impacted on their strategy over the last 12 months, and half of this group had not bought a property they would otherwise have bought.
Further, nearly 30% of investors said the new LVRs meant they were less likely to buy again over the next year.
ANZ economists, Cameron Bagrie and Philip Borkin, said the bullish house price inflation expectations suggest investors are not extrapolating from how LVR restrictions have affected their own decisions to how they might impact on the broader market.
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