Is the Investment Property market set to expand further with the updated New Zealand Reserve Bank LVR rules introducing further restrictions on ‘existing homes’, but potentially encouraging investors to ‘build new homes’?
The perfect storm could be brewing!
- The new Auckland Unitary Plan encourages more construction in Auckland’s expanded borders to manage the desperate shortage of quality new homes.
- Net migration has now passed 68,000 migrants annually and shows no immediate signs of slowing. These immigrants will need housing.
- A threefold increase in Britons wanting to move to NZ after the Brexit vote, and the slowing Australian Minerals Boom all point to the strong need to continue to build new houses.
- The Reserve Bank continues to exempt new construction from its nationwide LVR restrictions which creates opportunities for home owners and investors alike.
While there has been some scaremongering that the LVR restrictions may not be good for the economy, at Jennian Homes, we disagree. If you own a home and you want to build an investment property, you may now need *30% less total equity or deposit to build a new house than may be required to buy an existing house.
Working with Jennian’s Financial Partners, Jennian Homes is now able to provide innovative solutions to get you into an investment property with less equity or deposit than buying an existing home (which you occupy as your primary dwelling). The dream of an investment home is now achievable for many kiwis.
Many investors want both a capital gain and income, making building a great choice for the long term. With the correct loan structuring, a Jennian partnered finance option may not require loan repayments until your new investment property is completed, meaning your cashflow may not be interrupted until you have a tenant*.
Jennian Homes has been building homes Kiwi’s love for nearly 34 years and remains NZ’s oldest and most awarded group home builder, with truly national coverage.
Ask your nearest Jennian representative how to start your Investment Property tomorrow, with less equity or deposit than you might think. Our team will guide you through this process.
You may be surprised just how simple it can be to navigate what looks like a complicated mine field of barriers and LVR rules.
It is now time to act and talk to Jennian.
*Lending criteria applies. The equity example above is based on an owner occupier building an investment property. Every customer’s situation may differ.
*The Jennian finance solution is bank funded, with specialist skills in new builds.
*Jennian recommends all investors obtain proper independent advice. Jennian is not itself in the business of providing finance for a new home nor providing advice on property investment.