‘All these changes to tenancy legislation – investors are going to sell up!’ We’ve been hearing that for a while, and it reached a peak in the middle of this year.
Although anecdotally we know of a few investors who’ve chosen to exit the market this year, there seem to be many more who are taking advantage of the low-interest rates to expand their portfolio.
Real estate agents report that more investors are buying than selling, according to a REINZ/Tony Alexander survey from October, with investor interest having doubled since May. The report commented that “If some investors are selling, many more are buying.”
Finance was one of the biggest reported hurdles for investors, according to the agents surveyed, despite having no more loan-to-value ratio restrictions. Mortgage advisers say it’s still taking some time to process lending applications, so start early and be organised before you head out to buy.