Multiple-house owners facing hard times

'Buy a few investment properties. The rent will pay the mortgage, then later you can enjoy the capital gain'.

Well - it seemed a good idea at the time.

But the current recession is bringing things home to roost for many who speculated on property in the years leading up to 2007.

Unprecedented numbers of mortgagee sales are the result of New Zealanders who over-extended themselves during the property boom by buying multiple investment properties, according to new figures.

The data, released today by Terralink International, showed 247 registered mortgagee sales in May, compared to 88 for the same time last year.

Terralink managing director Mike Donald said the numbers were a sign that stress in the property market was not letting up.

To read the full NZ Herald article click here

Posted: 26 Jul 2009

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