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INSANE TRUTH About NZ Property Market / Ep 338

NZ Everyday Investor

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The Debt to Income Ratios and the Rental Crisis

The Reserve Bank has given themselves the power to introduce a debt to income ratio at any time. From March next year onwards, there is going to be an additional restriction on your ability to borrow four existing properties or your own home. If you're investing in new builds it won't impact you. A lot of regulation slammed in one area all at once without a lot of thought or testing or feedback. That's where you get these, it's almost like all these unintended consequences resonate. And it ends up punishing the tenant ultimately because they're absolutely more rent then we are as property investors. I predict it's going to get much much worse over the next 12 months. There's a 50%

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