Over the past few weeks the Reserve Bank has both helped and hurt investors looking to purchase in the greater Auckland area. On the one hand the reduction in the official Cash Rate of 0.25% has seen an immediate reduction in floating interest rates – with a potential ripple out to longer-term rates. On the other hand, they have also directed that from the 1st of October of this year investors will only be able to borrow a maximum of 70% against rental properties.

The frustration for investors and banks alike is that you have the “perfect storm” of opportunity right now – low interest rates, healthy rental demand & return and property that is forecast  to appreciate for the next 2 – 3 years. Rental purchases will not come to a halt in October, simply because a number of investors have enjoyed increases in their current homes or investments which will provide ample equity to bridge the gap, but it will effect first time investors looking to get into the market.

Especially for those people who need to borrow more to get into an investment property then the time to move on it would be now. The banks measure affordability based on what the interest rates are doing so the fact they are low means they measure “affordability” favourably at the moment.

We can give you a clear indication of how much you can afford over the phone and make the process of getting an approval from the bank as painless as possible.

Get in contact to see if you can afford that investment property before October comes.