Property investors maybe subject to new income rule
The Reserve Bank has been looking at introducing new capital requirements which would essentially make a new asset class and mean banks had to have more capital for lending to what it considers professional property investors.
It has been consulting with banks on the new requirements, but has kept rolling back the start date.
Reserve Bank deputy governor Grant Spencer, confirmed, when releasing the latest Financial Stability Report, that work is still continuing on this proposal.
He said there had been "initial consultations" with the banks but there was a difference of views and treatment of residential property investors.
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