PHOTO: ANZ says changing its rules is a way to bring some balance back into the market (file image). Photo: RNZ / Claire Eastham-Farrelly
Property investors do not think ANZ’s moving to tighten lending to property investors will help other residential buyers – and some say the bank is just looking out for its own risk.
ANZ has announced it will now require residential property investors to have at least a 40 percent deposit, up from the current 30 percent.
The bank also called for big, bold and urgent action to dampen the housing market, warning that house prices could be due for a correction in the new year if they continued to rise as they had.
There are no changes to deposit requirements for other residential buyers, including first home owners.
Long-time property investor Olly Newland did not think one bank upping its restrictions by 10 percent would make a difference.
“If they are using other properties to put up a security, that 30 to 40 percent won’t make much difference at all,” Newland said.
“If there are groups of people coming together to buy investment properties, which is quite common, that will have even less of an effect.”
He thought it would have unintended consequences.
“Property investors are necessary because when they get a property, they rent it out. If there are fewer investors, there will be fewer rentals, and that’s where the problem lies.”
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