News of the week has clearly been Fonterra\u2019s dirty pipe in processing their whey back in May last year and the global fall out from this recall. The on flowing damage to New Zealand\u2019s \u201cclean and green\u201d image is clear, and will take some time for us to regain confidence in the market.
\nFurther news has been the anticipated response by the Reserve Bank placing restrictions on the LOAN-TO-VALUE ratio. This is the Reserve Bank\u2019s response to their concerns in relation to our economy with house price inflation but also the high risk lending. The central bank has settled on a ‘speed limit’ approach to proposed restrictions on high loan-to-value ratio mortgage lending, effectively reducing the volume of low-equity lending banks can offer in a given period rather than banning it outright.
\nThe general consensus from economists is that first home buyers will end up bearing the brunt of this, which is obviously not the outcome any of us want. There is expected to be an increase in First Home buyers seeking to secure a loan or property before the above comes fully into effect on September 30th, 2013.
\nBNZ Chief Economist Tony Alexander does not believe this move by the Reserve Bank will have the desired effect of slowing the house prices. He said that \u201chouse prices would likely continue to rise for at least another three years.\u201d
\nThe National Government has responded with changes to the Loan-to-value Reserve Bank restrictions through changing the First-home subsidy through Kiwi Saver, these are outlined below:
\nWhat: $1000 subsidy for every year of saving, up to $5000 each ($10,000 for a couple).
\nCurrent criteria: Combined income up to $100,000; house worth up to $400,000 in Auckland or $300,000 in most other places; no minimum deposit required.<\/p>\n
New criteria: Combined income up to $120,000; house worth up to $485,000 in Auckland or $300,000-$425,000 elsewhere; 10 per cent deposit required<\/p>\n","protected":false},"excerpt":{"rendered":"
News of the week has clearly been Fonterra\u2019s dirty pipe in processing their whey back in May last year and the global fall out from this recall. The on flowing damage to New Zealand\u2019s \u201cclean and green\u201d image is clear, and will take some time for us to regain confidence in the market. Further news […]<\/p>\n","protected":false},"author":1116,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"slim_seo":{"title":"New Zealand News Week - colinrealestate","description":"News of the week has clearly been Fonterra\u2019s dirty pipe in processing their whey back in May last year and the global fall out from this recall. The on flowing"},"footnotes":""},"categories":[5532],"tags":[5533],"class_list":["post-496","post","type-post","status-publish","format-standard","hentry","category-real-estate-2","tag-real-estate"],"_links":{"self":[{"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/496","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=\/wp\/v2\/users\/1116"}],"replies":[{"embeddable":true,"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=496"}],"version-history":[{"count":1,"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/496\/revisions"}],"predecessor-version":[{"id":497,"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/496\/revisions\/497"}],"wp:attachment":[{"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}