Five Properties Plus Investors Get Another Six Months – RBNZ
Property investors with five or more properties were preparing for the change that would have them incurring more fees as from July 2014.
Borrowers with five or more properties with one lender (a major bank) will be assessed as either SME retail lending or income producing real estate. Both categories incur greater lending fees than the residential investment category.
This reprieve gives many investors time to get their lending in order. They may elect to spread the loans across various lenders – a practice that is highly recommended by seasoned property investors on the discussion forum – PropertyTalk.com.
This new rule also offers up more spreading of the risk amongst lenders and investors growing their portfolios can and will consider other lenders rather than lump all loans with the same bank.
The positives are definitely spreading the risks. The negatives is the work that may need to be done to undo existing lending structures.
Apartment investor and mentor Grant Hoey says:
We’ve known about this rule for twelve months. The Auckland Apartment Market has not suffered as a result. Apartments are in hot demand and investors are just acting smarter when sourcing their funding.
Grant Hoey runs an annual one day seminar on Apartment Investing and you can learn more about Grant and the success of his mentoring program by downloading the eBook – Cashflow Apartments