Warning: Rents will rise
The latest move to restrict investment purchasing is a requirement that banks severely limit lending to investors with a deposit of less than 40%, throughout the country.
Andrew King, executive officer of the New Zealand Property Investors Federation, said it was the latest move in three years of actions against landlords – none of which had worked.
“It has to get to the point where they think maybe this is not the problem,” he said. “Where does the point come when they think maybe [investors] are not the entire cause of house prices being where they are?”
King warned that anything that made life tougher for landlords would eventually push up rents, which have started to increase around the country after years of stagnating.
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