Property slump hits small-time investors

Buy-to-let landlords who invested in "cheap" areas are at the sharp end of a housing slump which has seen a record number of mortgagee sales.

Property consultant and investor Olly Newland told the Herald that most sellers had been caught out by rising interest rates and dropping values and had failed to gain the rents needed to cover their mortgages.

Figures released this week by property and land information company Terralink revealed a record 251 mortgagee sales in April, and experts said the trend showed no sign of slowing.

"An over-proportionate number of the people who are facing mortgagee sales are those with multiple investments and they've paid too much and they've got far too much borrowings for the immediate amount of rent," Mr Newland said.

To read the full NZ Herald story click here

Posted: 30 Jun 2009

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