PHOTO: 123RF NZIER believes first-home buyers are having to compete for low-cost housing stock with ever-greater numbers of investors.
A leading economic think-tank says first home buyers are missing out on affordable homes, which are being snapped up by investors following the easing of the Reserve Bank’s restrictions on how much banks can lend to buyers with small deposits.
The New Zealand Institute of Economic Research (NZIER) has modelled what it believes is the number of low-income households displaced by the restrictions.
It found that the recent 10 per cent easing in loan to value ratios (LVRs) is likely to double investment demand, crowding out low-income, first-home buyers.
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