I like it when I’m right. I feel a tingly sensation that causes a smug smile.
A few days back I said the debt to income idea was dumb. Because it is.
And I said that its bad for property projects. Turns out others all think the same.
Reserve Bank debt-to-income caps would be disastrous for house buyers and the residential and building sector, says a real estate chief.
Connal Townsend, Property Council chief executive, said any new restrictions would worsen housing affordability and his organisation was “terribly concerned” about it.
Last week, the Reserve Bank raised the possibility of introducing debt-to-income ratios after it warned the Government that resurgent house prices were a risk to the economy.
Governor Graeme Wheeler said the average house price in Auckland was nine times larger than the average income, making it one of the least affordable metropolitan markets in the developed world. Read more »