With the Reserve Bank announcement on Loan-To-Value Ratio restrictions this month it proposed LVR for investors be increased to require a 40 per cent deposit.
This only makes rental properties more expensive, putting the bottom of the heap out of rentals on to the street or the backs of cars.
This does nothing to stop property investors increasing rentals every three months with 42 days' notice. Nor does it stop terminating contracts when people cannot pay excessively high rents to pay off investors' mortgages.
Let us get real, to stop tenants being displaced for not being able to pay high rents start thinking of our families with young children and our senior citizens having to vacate their homes by the actions of property investors. Is it any wonder homeless figures are increasing? Not only does the Reserve Bank need to turn the screws but our government needs to see what property investors are doing to our rental properties to increase the homeless. Immediate action is required now to stop this, by government implementing a rent freeze on all rental properties for a period of no less than two years.
K Allen, Katikati.
2 comments
I am not convinced..........
Posted on 29-07-2016 21:44 | By groutby
.that rental properties are automatically more expensive if the LVR rates are increased, the properties still cost the same..just more $$ "up front" to buy them isn't it?. If there are less rentals (similar to less properties to buy from those who invest) then yes, the price will go up..so, my hunch is (as a non-investor or landlord) that any rental "freeze" (which, after Muldoon"ism") will not happen, will probably make the availability of rentals even less??..do tell if I am wrong please, much demand for housing requires more to be built as is the wish of all I am sure, but have those who require housing right now, got the inclination to help themselves into even paying a "reasonable" rent..or do they just want something for nothing??..I hope not, K Allen, the government is here for all and is most certainly not a charity.
Rent Freeze
Posted on 31-07-2016 11:28 | By Crash test dummies
The rent is determined by the market, the more rules and red tape created for landlords, the more the cost of that house to be rentable, so the rent obviously gets higher when the costs are more right! The next obvious is that the Reserve bank has not dropped interest rates fast enough, the rates compared to other countries are very high so attract a lot of money to NZ, that money needs to go somewhere and buying houses is very profitable and has been for years now. A larger deposit will have little impact on investors, a mere 20% is plenty in Auckland to stop first home buyers, plan and simple.
Leave a Comment
You must be logged in to make a comment.