The reserve bank has tried to stall the booming property market in Auckland and I have no doubt that many people who were contemplating buying a property for investment purposes have now decided against it.
Unfortunately this may help the housing problem in the short term (personally I don’t think it will do much but that’s another topic for discussion) but it will add to another problem the entire country faces and that is the baby boomers hitting retirement with out a nest egg and therefor adding to the massive problem that is providing the pension to the retired.
The pension problem is massive and pushing people away from one way of minimising that problem is a mistake however people who seek out help will be able to invest in real estate and provide a comfortable living for themselves in retirement.
Here’s an example of how seeking help can make the difference, Two non-bank lenders being Resimax and Liberty don’t have to comply with the 60% Lvr regulations, they will monitor things but they can still offer 80% lending to investors.
It’s basically business as usual for those who know and smart investors will adapt and leverage as much positive gain for themselves as possible.