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Investors cash in as first-timers lose out
BY RICHARD MEADOWS
02/02/2014Property investors are going on buying sprees while first-home buyers remain locked out of the market, but rising mortgage rates could help turn the tide.
The latest Reserve Bank figures suggest its new loan-to-value ratio (LVR) “speed limits” are having the desired effect as would-be home-buyers with less than a 20 per cent deposit are effectively shut out of the market.
High LVR lending has shrunk by 79 per cent since rules were introduced in October.
But iLender broker Jeff Royle said any first-home buyers sidelined by a lack of equity had simply been replaced by cashed-up property investors.
“I’ve had existing investor clients who bought nothing up until October and then they went on a buying spree,” he said.link:
http://www.stuff.co.nz/business/money/9675611/Investors-cash-in-as-first-timers-lose-out
