Investors claim “Governments shooting at the wrong target” , when tackling surging house prices.
The prime minister has said the reserve bank should look at investors and consider targeting them with tougher lending rules.
John Key believes the central bank should consider extending loan to value ratios above the 30% limit in Auckland.
Property Investors Federation who represent landlords of rental properties disagree saying over the last year rental property owners have already been hit with higher loan to value ratios. This has been particularly high in Auckland.
They have also been hit with higher risk weighting requirements.
Property Investors Federation have stated ” If all these measures aren,t slowing house price growth that perhaps we are shooting at the wrong target”.
In November last year the reserve bank restricted investor borrowing in Auckland to 70% of the value of the property they were buying ,while the rest of the country had a limit of 80%.
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