What do they actually mean? Most of us are aware of these terms and are unaffected by their introduction into the property market. Essentially the Government and the Reserve Bank are concerned with strong house prices driving internal economic activity in NZ, increasing debt and straining through too much debt. Add to this a feeling house prices are causing homelessness and you have a few reasons for these two parties to control the housing market activity. Road blocks is pretty restricting borrowing through an increase in deposits required by a purchaser. At present that is restricted to 20% and the Reserve Bank are threatening 30%. Lending restrictions refer to the Government wanting to link lending to incomes so a person can only borrow a certain multiplier of their income. The housing market issues being discussed are Auckland issues. Immigration is at record levels and the bulk of those entering the country are entering and staying in Auckland. House prices out of control is an Auckland problem and a housing shortage and homelessness is an Auckland problem. So why is the Government and the Reserve Bank putting national controls in place? It makes no sense. Think about it, if there is a shortage of housing in Auckland and house prices are out of normal peoples league then place restrictions on Auckland buyers and sellers which may force these people further afield and into the regions. Regional New Zealand has a buoyant real estate market in most places but is certainly not out of control. There are houses to purchase at prices that are within most people’s range. With people moving into the regions there will be a need for more labour, more people equal more jobs. I have said it before and will say it again, common sense needs to apply here and keep Auckland’s housing problem in Auckland not in the regions. Fingers crossed this happens but judging by past history I can’t see it happening sadly. Either way we are confident in what we are doing at present. There is a shortage of houses for sale and plenty of buyers in the market. Prices are not out of control, now is a great time to be selling so if you are thinking about it call one of our award winning team. Leave a Reply. |
James Twiss
Licensed Business Owner of Harcourts Four Seasons Realty 2017 Ltd Greg Roberts
Licensed Business Owner of Harcourts Four Seasons Realty 2017 Ltd Archives
September 2020
|