Property Investors Federation executive officer Andrew King said Auckland investors started looking to places such as Hamilton to buy about September when the yields for rentals in Auckland were dropping. CoreLogic senior research analyst Nick Goodall said the rise of Auckland investors in Hamilton had come at a cost to other investors and, to a lesser extent, first-home property buyers. Between 2010 and 2014, Auckland investors buying in Hamilton hovered near the 5 per cent mark but soared to 18 per cent last September. CoreLogic analysis also showed Auckland investors were willing to spend as much as first-home buyers in Hamilton, Tauranga and Whangarei which pushed prices up and other investors out of the market. In 2013 the Reserve Bank introduced LVRs that meant a 20 per cent deposit was normally needed, and last year it raised that to 30 per cent for Auckland investors.

Source: New Zealand Herald July 19, 2016 16:52 UTC