Articles by Matthew Gilligan
Did everyone catch the NZ Reserve Bank announcement today that investors with 5 or more rental properties will be required to be treated commercially by banks?
Apparently we must be treated as small business owners in risk profile and higher costs for credit paid. Higher interest rates and potentially lower LVR ratios are possible. This will reduce liquidity in the market more, on top of the 20% deposit rules already applied late last year. There is some speculation that it will be applied on a 5 property rule per bank, which would soften the impact for some. This is rough stuff for property investors and will arguably tighten housing supply discouraging bigger investors to participate in construction of larger scale portfolios. It must further spook the market in the short run. But will likely create some good buying opportunities on the flip side.
You can read the full report New Reserve Bank Lending Rules mainly paragraphs 31-37.
Property School taught me there are more ways than I had thought about to grow wealth through property, and that wealth creation really is a possibility for us. - Lawerence Wong, April 2019
If you're investing in residential property, seeking to maximise your ability to succeed and minimise risk, then this is a 'must read'.
Matthew Gilligan provides a fresh look at residential property investment from an experienced investor’s viewpoint. Written in easy to understand language and including many case studies, Matthew explains the ins and outs of successful property investment.