UK: Buy to let concerns

The Bank of England due to concerns about property investors causing social and financial instability, will soon have new power to curb property investment ease at applying for loans.  NZ has already brought in 40% minimum deposits and threatened to bring in 100% LVR, which would mean no mortgages available for investors.  The 40% minimum requirement has reportedly already cooled their market.

I hope Australia brings in something similar soon.  Thirty year old suburban houses in my locality of Kingborough are selling in days at nauseating prices.  Weirdly, the prices and sales volumes appear to be dropping, and there are advertisements and seep with desperation, but one to three days on the markets is certainly not unheard of in metropolitan, low crime areas.  With just over one in ten purchases being first home buyers, compared to one in three in the USA with lower prices in suburban areas, I believe that leaving things as they are is both immoral and economic vandalism.

Disclaimer: this an opinion piece only.  For professional financial advise seek the services of a qualified professional.

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