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.
Thanks for a great night at your property information seminar last night. Both my husband and I thoroughly enjoyed what Matthew had to talk about and we learnt a great a lot. We have recently joined GRA for our accounting services and are in the process of changing structures with trusts etc. Whilst its only early days everyone so far we have dealt with has been fantastic and we feel we are in great hands with GRA to not only manage our affairs but to also help to grow our wealth moving forward. We look forward to joining you at property school next year! - Amanda C, November 2018
Gilligan Rowe and Associates is a chartered accounting firm specialising in property, asset planning, legal structures, taxation and compliance.
We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.Learn More