Property investor Olly Newland says because of LVR limits ‘a lot of people’ are sitting on cheap houses they can’t sell..
‘A lot of people’ are now sitting on low-priced houses they can’t sell because of the Reserve Bank’s ‘speed limits’ on high loan-to-value lending, according to long-time property investor Olly Newland
Newland, who’s also an Authorised Financial Adviser and author, told interest.co.nz /that warnings he had made in an interview late last year that the LVR limits, introduced in October, might cause the property market to become dysfunctional, were coming true.
“…The market is becoming dysfunctional. Expensive houses are selling, very quickly, therefore skewing the statistics that prices are rising, and a lot of people are sitting on the very cheap houses and can’t move them.
“I have clients now who are sitting on cheaper houses and they can’t sell them. They can’t get out of them. Especially those who have been doing them up and reselling because the buyers have disappeared and the poorer buyers with small deposits haven’t got the ways and means to find Mickey Mouse ways of getting around it.”