* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Tuesday, August 5, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    ‘Billie Jean’ – Hyde Park Herald

    The Enduring Magic Behind ‘Billie Jean’ Revealed

    Hank Hill returns to a changed world in new ‘King of the Hill’ episodes – New Haven Register

    Hank Hill Navigates a Bold New World in Thrilling New ‘King of the Hill’ Episodes

    Exclusive | Fox Takes Stake in IndyCar Owner Penske Entertainment – The Wall Street Journal

    Exclusive | Fox Takes Stake in IndyCar Owner Penske Entertainment – The Wall Street Journal

    Go-to entertainment: why gaming was made for the toilet – The Guardian

    Why Gaming Is the Ultimate Way to Pass Time in the Bathroom

    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Sens. Blackburn, Warnock introduce CREATE Act to provide tax relief to music creators – Yahoo Home

    Sens. Blackburn and Warnock Launch CREATE Act to Deliver Tax Relief for Music Creators

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Nasdaq-listed Verb Technology to build $558 million TON treasury, rebrand as TON Strategy Co. – The Block

    Nasdaq-Listed Verb Technology to Build $558 Million TON Treasury and Rebrand as TON Strategy Co

    How Tech Firms Like Google and Meta Are Embracing the Military – The New York Times

    How Tech Firms Like Google and Meta Are Embracing the Military – The New York Times

    Credo Technology: Wiring The AI Revolution (NASDAQ:CRDO) – Seeking Alpha

    Credo Technology: Driving the Next Wave of AI Innovation

    Microsoft Seeks to Extend Access to OpenAI Technology – PYMNTS.com

    Microsoft Aims to Broaden Access to OpenAI Technology

    Livonia police use grappler technology to stop drunk driver – ClickOnDetroit | WDIV Local 4

    Livonia Police Deploy Grappler Technology to Safely Stop Drunk Driver

    Emory orthopaedic surgeons use robotic technology to transform knee replacement surgery – Emory News Center

    How Robotic Technology is Revolutionizing Knee Replacement Surgery

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    ‘Billie Jean’ – Hyde Park Herald

    The Enduring Magic Behind ‘Billie Jean’ Revealed

    Hank Hill returns to a changed world in new ‘King of the Hill’ episodes – New Haven Register

    Hank Hill Navigates a Bold New World in Thrilling New ‘King of the Hill’ Episodes

    Exclusive | Fox Takes Stake in IndyCar Owner Penske Entertainment – The Wall Street Journal

    Exclusive | Fox Takes Stake in IndyCar Owner Penske Entertainment – The Wall Street Journal

    Go-to entertainment: why gaming was made for the toilet – The Guardian

    Why Gaming Is the Ultimate Way to Pass Time in the Bathroom

    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Chicago Youth Symphony Orchestra takes the Lollapalooza stage – Yahoo Home

    Sens. Blackburn, Warnock introduce CREATE Act to provide tax relief to music creators – Yahoo Home

    Sens. Blackburn and Warnock Launch CREATE Act to Deliver Tax Relief for Music Creators

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Nasdaq-listed Verb Technology to build $558 million TON treasury, rebrand as TON Strategy Co. – The Block

    Nasdaq-Listed Verb Technology to Build $558 Million TON Treasury and Rebrand as TON Strategy Co

    How Tech Firms Like Google and Meta Are Embracing the Military – The New York Times

    How Tech Firms Like Google and Meta Are Embracing the Military – The New York Times

    Credo Technology: Wiring The AI Revolution (NASDAQ:CRDO) – Seeking Alpha

    Credo Technology: Driving the Next Wave of AI Innovation

    Microsoft Seeks to Extend Access to OpenAI Technology – PYMNTS.com

    Microsoft Aims to Broaden Access to OpenAI Technology

    Livonia police use grappler technology to stop drunk driver – ClickOnDetroit | WDIV Local 4

    Livonia Police Deploy Grappler Technology to Safely Stop Drunk Driver

    Emory orthopaedic surgeons use robotic technology to transform knee replacement surgery – Emory News Center

    How Robotic Technology is Revolutionizing Knee Replacement Surgery

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

Lending rules loosen, Budget for investors: What is happening with the NZ housing market this week?

June 2, 2024
in Business
Lending rules loosen, Budget for investors: What is happening with the NZ housing market this week?
Share on FacebookShare on Twitter

A mans hand holds NZ dollar bills against a front of a traditional villa house in Auckland, New Zealand. Buy, sale, real estate, insurance, mortgage, bank loans and housing market concept.

The Reserve Bank has activated debt-to-income (DTI) rules and is loosening the loan-to-value ratios (LVR) as a further means of managing the property sector.
Photo: 123RF

Analysis – There are lot more options for investors with a bunch of rule changes and Budget allocations, but the direction of interest rates still remains uncertain. Here’s what moved real estate this week.

Starting off, let’s look at the what the Budget brought.

Restoring interest deductibility for residential rental property takes up $729 million of the Budget.

The cost of tax breaks for landlords over four years will be $2.9 billion.

Last week the government scrapped the First Home Grants scheme. It is expected to save about $245m over four years.

Read more: How to enter the property market without a First Home Grant

Another $140m has been set aside in new funding for 1500 new social housing places from July 2025, to be provided through Community Housing Providers rather than Kāinga Ora.

The Ministry of Housing significantly exceeded its savings goal of $109m, instead cutting its baseline by $391m.

The Warmer Kiwi Homes scheme is also being scaled back with the end of subsidies for hot water heating and an outreach programme to target hard-to-reach households.

And $45m is being spent on adjusting the bright-line test. From 1 July, the cut-off for tax breaks when selling a second home will drop from 10 years to two.

Debt-to-income and loan-to-value ratios

The Reserve Bank (RBNZ) has activated debt-to-income (DTI) rules and is loosening the loan-to-value ratios (LVR) as a further means of managing the property sector.

From 1 July, banks will be limited to no more than 20 percent of new lending to owner-occupiers with a DTI ratio of more than six, and no more than 20 percent of new investor lending over a DTI of seven.

That means most owner-occupiers with an income of $100,000 would be able to borrow $600,000, and investors $700,000.

LVRs restrict the amount of low deposit lending by banks. This changes mean banks can lend 20 percent of their lending to owner-occupiers with deposits of less than 20 percent, from 15 percent at the moment, and 5 percent of lending can be done to property investors with equity or deposits of less than 30 percent, compared to 35 percent at present.

Low interest rate expectations and house price growth

There’s a growing belief among households that interest rates will soon fall, but the country remains split on whether the time is right to buy a house.

ASB’s housing confidence survey for the three months to April shows that for the first time in three years, more New Zealanders expect interest rates to go down rather than up.

“While we are at the peak of the interest rate cycle, there is still uncertainty about when the Reserve Bank will begin lowering the official cash rate (OCR) which means affordability constraints are likely to remain,” ASB senior economist Kim Mundy said.

She said households’ expectations of lower interest rates was premature in ASB’s view, but it should not be ignored as sentiment could drive demand.

Read more: Investors may see biggest impact of Reserve Bank’s lending limits

About 55 percent of the 3000 people surveyed said it was neither a good nor a bad time to buy a house.

House price expectations also lost momentum, with a net 44 percent expecting prices to rise, down from 51 percent last quarter.

ASB forecasts 1 percent house price growth in 2024.

The best home loan to fix?

Home loan interest rates have risen from historic lows of about 2 percent to more than 8 percent in some cases. But rates dropping again is a story for next year.

The Reserve Bank made it clear that it did not expect the OCR to fall any time soon.

For those taking out a new loan or refixing an existing one, 12 months seems to hit the right spot, a bunch of mortgage advisors told RNZ.

Squirrel chief executive David Cunningham said fixing short, on a term of 18 months or less, made sense based on the likely track for the official cash rate.

“The Reserve Bank is holding rates up with the OCR and inflation track in the latest MPS. My view is that once inflation is snuffed out, home loan rates will likely fall over the course of 2025-26 towards 5 percent.”

Edge Mortgages financial adviser Glen McLeod said his preference was “firmly in the 12-month rate”.

He said 12-month fixes would be at a rate of between 6.85 percent and 6.99 percent when discounted. “While it is more expensive than the 18 to 24-month lending, it does bring greater flexibility. Taking the longer-term interest rates may result in your rates being higher for longer than they need to be.”

Read more: https://www.rnz.co.nz/news/national/517749/what-s-the-best-home-loan-term-to-fix-for-now What’s the best home loan term to fix for now?]

Real estate sector on the struggle to find buyers

More real estate agents are quitting the housing market as the job gets tougher.

“It’s a buyer’s market. We are having more problems with finding buyers,” one agent said.

The number of active real estate licenses – including agents, branch managers and salespeople – is now 15,460 down from 16,053 in April 2023.

In late 2020, at the busiest time of the market, more than 10,000 houses changed hands in a single month. That number was 5559 in April 2024 – or about one sale for every three licensed industry participants.

Read more: TradeMe notes increase in $1 reserve properties, but are they worth it?

At the same time, the Real Estate Authority (REA) said licensed real estate branch managers had grown by 21.6 percent in the past year.

REA chief executive Belinda Moffat said it had developed a new NZQA-approved branch manager qualification, with the Real Estate Institute of New Zealand and The Skills Organisation.

“We wanted to see strong growth in the number of supervisors in the profession to support high standards of conduct. Through supervision, branch managers are able to support salespeople to identify and resolve issues to avoid problems occurring in a transaction. This is particularly important in a challenging real estate market where transactions can be complex.”

Renters v landlords

Property investors say there is no excuse for poor insulation or ventilation under the new healthy homes standards, but some renters say it is too hard to challenge landlords.

Renters are reporting they are still living in cold and mouldy houses despite them being healthy homes compliant.

But Property Investors’ Federation president Sue Harrison said tenants could go to the Tenancy Tribunal.

However, Renters United said the Tenancy Tribunal was not set up in a way that was easy for renters to use.

And the government is being told it needs to do more to help people struggling to pay for housing.

The weekly accommodation supplement hasn’t been increased in six years and Trademe last month reported rents had reached a record high.

A budget advisor said the payments should be linked to rent prices.

Building consents down

Another 1.9 percent drop in residential building consents in April over March points to a continued downturn in the construction sector over the rest of the year.

A report by Westpac economists indicates the 23 percent drop on the year earlier reflects the tough conditions in the building sector, with large increases in build costs and financing costs over the past few years, as well as weakness in the housing market.

Read more: Construction industry leaders plead for acceleration of infrastructure projects

Despite the rising costs the price for newly built homes is under pressure.

Consent numbers fell 27 percent in Auckland, 30 percent in Wellington, with Canterbury down 16 percent.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : RNZ – https://www.rnz.co.nz/news/business/518410/lending-rules-loosen-budget-for-investors-what-is-happening-with-the-nz-housing-market-this-week

Tags: businesslendingRules
Previous Post

Dairy farmers face significant risks if new infestations take hold on one of the biggest days of the calendar

Next Post

New Tīwai Point deal could reinforce coal use for electricity

Your nature photo might be a scientific breakthrough in disguise – ScienceDaily

Could Your Nature Photo Unlock the Next Big Scientific Breakthrough?

August 5, 2025
Scientists reexamine 47-year-old fossil and discover a new Jurassic sea monster – ScienceDaily

47-Year-Old Fossil Reveals an Astonishing New Jurassic Sea Monster

August 5, 2025
Moment of Science: Parker probe offers insights into sun, solar wind – WIS News 10

Parker Probe Unveils New Secrets About the Sun and Solar Wind

August 5, 2025
Nurse, marathon runner Jin Lee promotes healthy lifestyle by example – Bucks County Herald newspaper

Nurse, marathon runner Jin Lee promotes healthy lifestyle by example – Bucks County Herald newspaper

August 5, 2025
Who’s the top dog? Wave-riding canines compete in the World Dog Surfing Championships – NPR

Meet the Ultimate Wave-Riding Dogs Competing for the World Surfing Championship!

August 5, 2025
‘The Big Short’ investor warns despite economy’s stronghold against ‘thoughtless,’ ‘unprecedented’ tariffs so far, stagflation is coming – Fortune

The Big Short’ Investor Issues Stark Warning: Stagflation Threatens Despite Economy’s Surprising Strength Against Unprecedented Tariffs

August 5, 2025
‘Billie Jean’ – Hyde Park Herald

The Enduring Magic Behind ‘Billie Jean’ Revealed

August 5, 2025
Health insurance in Pennsylvania may see biggest hike in years – 90.5 WESA

Pennsylvania Braces for Its Largest Health Insurance Increase in Years

August 5, 2025
The Origins of the Political Power Grab in Texas – The New York Times

Inside Texas’s Bold Quest for Political Control

August 5, 2025
Nasdaq-listed Verb Technology to build $558 million TON treasury, rebrand as TON Strategy Co. – The Block

Nasdaq-Listed Verb Technology to Build $558 Million TON Treasury and Rebrand as TON Strategy Co

August 5, 2025

Categories

Archives

August 2025
MTWTFSS
 123
45678910
11121314151617
18192021222324
25262728293031
« Jul    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (755)
  • Economy (780)
  • Entertainment (21,657)
  • General (16,295)
  • Health (9,817)
  • Lifestyle (788)
  • News (22,149)
  • People (779)
  • Politics (789)
  • Science (15,993)
  • Sports (21,275)
  • Technology (15,757)
  • World (761)

Recent News

Your nature photo might be a scientific breakthrough in disguise – ScienceDaily

Could Your Nature Photo Unlock the Next Big Scientific Breakthrough?

August 5, 2025
Scientists reexamine 47-year-old fossil and discover a new Jurassic sea monster – ScienceDaily

47-Year-Old Fossil Reveals an Astonishing New Jurassic Sea Monster

August 5, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version