A leading financial expert states individuals buying and selling houses rapidly, aiming to make quick money, are driving up Auckland property costs. JonnoIngerson, director of research at a property analytics firm, warns that Auckland's housing market is ending up being so unaffordable it's a question of when the "elastic band" will break, not if.
" So you've got this activity occurring in Auckland of individuals purchasing and selling property actually rapidly. Why? Well it's not simply investors," he said.
" There's all sorts of people that go, 'because the market is increasing I can make some money off it, I can move around in it.' It becomes self-perpetuating. " As a financial expert taking a look at this you 'd say that's the bit I'm concerned about, is that speculation."
Mr.Ingerson says tighter lending rules will assist however they will not be a silver bullet because about a quarter of speculators are buying and selling houses with cash and do not require loans from banks.