But the property pendulum could soon swing in favour of investors.
Given 80 percent interest deductions are back, the deposit requirement for investors purchasing existing properties is expected to drop from 35 percent down to 30 in July.
Also, that month, the bright-line test loosens – meaning investors will only pay tax on capital gains if the property’s sold within two years. Currently, it’s up to 10 years.
“The big hurdle for investors is simply high mortgage rates. The rental returns are not covering those mortgage costs,” Davidson said.
But relief came from ASB on Wednesday, with the bank dropping some of its fixed home lending rates. That’s despite the official cash rate (OCR) not moving.
“Fixed rates are driven by a set of other factors besides the OCR – the wholesale money market, the economic landscape, but also how we price our deposit products,” ASB products general manager David Jackson said.
Swift Mortgages negotiated a 6.8 percent interest rate for Simupande.
“I am able to manage it OK, believe it or not but, of course, if interest rates go down then… that would help tremendously as well,” he said.
But that’s not expected to happen until next year.
For now, at least, Simupande will be sitting back in the comfort of his own Auckland home.