CPIA Article – August 2017

It’s a great opportunity for me to be writing another column as the principal sponsor of the Canterbury Property Investors’ Association. The team and I are enjoying attending the wide range of events on offer and we look forward to engaging more with you all in the future.

As investors, we may have a number of property investment options when looking to expand our portfolio. With the Reserve Bank’s LVR rules in place, it’s important to be aware of how these will impact on your future property goals. So what is a good option for investors when it comes to LVR restrictions? New builds! New build properties are one of the exemptions from the LVR rules. This can be in the form of traditional construction lending where the loan is disbursed in staged payments, or a turnkey. The exemption can also apply to top-ups to the loan arising from construction cost overruns during the build, but it doesn’t apply to borrowing for extensions of existing properties or for expenditure such as furnishings.

New build properties also have several other benefits for landlords too. Firstly, a newly built home is more likely to attract a higher quality tenant. In addition, there may be potential for a more attractive yield, along with less initial maintenance for you as the property owner.

It’s clear that a new build can be an attractive option when looking to expand your portfolio. If you think a new build could be the way forward to increasing your property investment portfolio, give Tony Mounce Mortgages & Insurance a call on 0800 MOUNCE. The team and I look forward to meeting more of the CPIA community in the future and we would love to chat about how we can review your position and help you achieve your property goals.

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