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House prices going up a double-edged sword - property investors

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Fuseworks Media
Fuseworks Media

Andrew King vice-president of the NZ Property Investors Federation told TV One’s Q+A programme, "if you are in a position or want to buy more rental property, that makes it hard."

"You would hope that first-home buyers are not in fact going for these $800,000 properties, because they’re just going to get themselves horrifically in debt." he said.

Andrew King also told the programme that there is no housing bubble.

Mr King said in the last property cycle we had a 30,000 increase in our population "but house prices went up at a far greater rate than they are now."

He said "if anything, you’d say that we haven’t actually grown as much as we could’ve expected with this amount of people coming into the country."

"If you talk to people like the Salvation Army and a lot of our members, who are looking at renting our properties, they’re finding that a lot of tenants are moving in with each other now to cope with those 6% to 7% rental price increases."

"So what we’re seeing are two different markets - buyers and tenants are completely different," said Mr King.

Q+A, 9-10am Sundays on TV ONE and one hour later on TV ONE plus 1. Repeated Sunday. Streamed live at www.tvnz.co.nz

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