lending

Investment Property Restrictions Announced

13/05/2015 - Reserve Bank announces new LVR restrictions

The Reserve Bank announced Wednesday morning the introduction of new policy changes to the loan-to-value (LVR) ratio.

LVR is calculated as Total Loan / Property Value = x%.

The changes take effect from 1 October 2015 however the Reserve Bank has asked the banks to operate in the spirit of the changes effective immediately.

The changes are as follows:

Investment Property: Yield or Capital Gain?

Our partners over at Westpac have put together a handy little interactive tool they are calling the "Westpac Property Investor Report", but we think that doesn't do it justice.

Sure it's a report, but it has a cool little interactive tool that you can play with and see how much rent you should be charging and how much your property's value is increasing by each year.

This will be useful if you have an investment property and really useful if you are looking at buying one.