What's happening in the market right NOW
Read Here
News

Will BNZ’s shared-equity scheme have any impact on the housing market?

In his Weekly Overview of 13 December Tony Alexander, Chief Economist for the Bank of New Zealand, commented on BNZ’s shared equity scheme:

“This week BNZ announced the start up next year of a shared equity scheme for home purchases. Details have yet to be fully thrashed out, but it looks like if buyers have a 10% deposit an investor can provide up to another 15% and the bank the remaining 75%. Or numbers like that. The buyer saves the extra interest charge for low equity purchases and becomes able to purchase when they would not otherwise have been able to. That last factor however may not be so substantial given that up to 20% of bank lending to owner occupiers can from January 1 entail deposits less than 20% of the purchase price. In October 8.9% of new lending involved less than a 20% deposit. Nonetheless, the scheme will allow home ownership for more people than would otherwise be the case.

Market impact? Numbers are not likely to be large but whatever they are they will add to demand therefore place additional upward pressure on prices. Housing is a supply/capacity constrained sector and only moves which boost construction will have much downward price impact.”

Rob Stock, Money and Consumer Affairs Reporter for stuff.co.nz believes there are pitfalls to the scheme – read Rob’s article here

Up to Date

Latest News

  • Median House Price in Auckland reaches a new high

    Article supplied by REINZ Auckland’s median house price increased by 18.5% from $945,000 in March 2020 to $1,120,000 in March 2021 – a new record for Auckland. Additionally, Auckland City, Manukau City, North Shore City, Papakura District and Rodney District all reached new record median highs. Wendy Alexander, Acting Chief Executive … Read more

    Read Full Post

  • NZ remains buoyant throughout the summer holidays

    Article supplied by REINZ Despite most New Zealanders taking a summer holiday in January, the housing market was busier and more buoyant than we would usually see at this time of the year, according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the … Read more

    Read Full Post