NZPIF requested a meeting late last year to clarify and discuss reports that the Reserve Bank Governor wanted to limit the number of rentals that investors could own.

However, NZPIF were told the Governor has no interest in how many rental properties any investor may own. The Bank believes that loans for rental property are riskier than loans for owner occupied homes, so they do want to classify some residential property investment loans as rental property loans separately from ordinary residential loans.

The clear message from the Bank is that some form of classification for rental property loans will be introduced. How this will affect rental property owners and who will be affected, has yet to be determined.

Source: New Zealand Property Investors Federation