The Reserve Bank of New Zealand are trying to slow down house price growth. I have done several interviews to TV, radio, print and digital media since the announcement.
The restrictions include having a maximum 70% loan to value ratio for secondary dwellings (this includes all rental properties and is likely to include bachs). This does not apply to home-owners and new builds are rightfully exempt, thus encouraging new supply.
RBNZ will succeed in that the rules will slow down the rates of growth a bit. The pity is that this is a demand side restriction, and the focus for Auckland should be on the supply side. We need to make it much easier to get resource consents, and to rethink how Auckland Council charges its Development Contributions and also Watercare Infrastructure Growth Charges.
See my comments to Radio NZ here.
