More Dwellings More Accessible to Investors

Investors hoping to acquire new properties in New Zealand are facing new requirements from the Reserve Bank – we explain what this could mean for you.



The New Requirements


From 1st October 2016, residential property investors will generally need a 40% deposit for when they buy a property, and owner-occupiers will generally need a 20% deposit.

With these requirements, the Reserve Bank aims to encourage purchasing of newly developed properties to encourage more properties to be built and increase the housing stock in the New Zealand housing market to slow the rapid house prices and property market.


Exemptions apply where:


Owner-occupiers or investors are constructing or purchasing a new dwelling (provided the loan commitment occurs prior to, or at an early stage of, construction of the dwelling).


Deposit Requirements For New Dwellings


When purchasing a new dwelling as an investment a deposit of only 20% is required as opposed to a 40% deposit when purchasing an existing dwelling. This allows investors to continue to expand their portfolio even if they can’t meet the 40% requirement but can get to 20%.


Rules Apply To Registered Banks Only

As the Reserve Bank rules apply to registered banks only, non-bank lenders are able to lend to levels greater than the banks, lowering the deposit requirements when dealing with this source of finance. Again this allows portfolio expansion when 40% deposit can't be achieved.


More Information


We suggest a Mortgage Broker should be able to help navigate the new rules, plus they should have access to non-bank finance. One who’s been particularly helpful and has banking and broking experience is Mark Cook of the Home Loan Shop


Mark Cook, Home Loan Shop

Tele: 022 044 2557

Email: markcook@homeloanshop.co.nz 


If you're considering Property Management get in touch with us today. Locally owned and managed, we offer residential property management services across the entire Wellington & Hutt Valley region.


We take care of investments, offering peace of mind and a personal service to investors and tenants alike. Our solutions are backed by industry-leading technology and proven systems that promote both excellent property care and strong investment returns. Taking on all aspects of the landlord’s role, we guide our clients with professional, tailored advice using our extensive experience and insight in the rental market that can only be built over time.


If you would like to chat about the possibility of working together, or to receive a no-obligation, FREE Rental Appraisal get in touch with our team today.

Quinovic Johnsonville | Wellington

Call Jordan Atkinson - 027 297 0873


Quinovic Hutt Valley | Wellington

Call Helen Vance - 027 487 8103

Quinovic Kent Terrace | Wellington

Call Jordan Atkinson - 027 297 0873



Quinovic Wellington Property Management

Article written: November 2016

Get a Free Rental Appraisal

Free and no-obligation! Receive a detailed report on the earning potential of your investment property.

Thanks! We'll be in touch soon.

Thanks for subscribing

Get the latest news for landlords

Thanks for subscribing!