One can detect the cracks are appearing in the RB regulation to cap lending to low deposit buyers.
I was one of the first to point out that builders of “affordable” homes may lose half their customers if these regulations
The next question that follows is what happens if low deposit buyers who want to buy an existing home?
If the rules are changed for buyers of new-builds why have those who want to buy ready made house being picked on?
Newly built affordable housing is almost always on the fringes of the town, which may be very difficult for many
with children, work and schools to deal with.
The problem we have with the bureaucracy it tries to foretell what is going to happen tomorrow, next month and next year
and later tries to explain why it didn’t happen.
Reserve Bank keeps ‘options open’
The Reserve Bank is examining the impact of new loan restrictions on the number of homes being built as builders lobby for new homes to be excluded.
Worried at what it sees as an overheated housing market, the Reserve Bank put the brakes on through tough new measures limiting the number of mortgages banks make to home hunters with l low deposits.
But building representatives say those restrictions could result in 3000 fewer homes built each year, hindering government efforts to lift supply to curb rampant house price inflation.
Economists have also taken the Reserve Bank to task for being heavy handed, saying the Government should be the one devising the country’s housing policy.
Registered Master Builders Federation chief executive Warwick Quinn met Reserve Bank and Treasury officials earlier this month to spell out the impact.
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