I honestly don’t get it!  The Reserve Bank is proposing to tighten the loan-to-value (LVR) restrictions which limits how much banks can lend on a home compared to the value of that home. Where does this leave first home buyers? It means that they will need longer to save a deposit because they need a larger amount to purchase a home. Whilst this may not be so much of an issue for some, what is an issue is if our residential property investors start pulling out of the market, leaving fewer homes available for rent thereby pushing rental rates up. Why is this likely to happen? Because from 1st October, investors who purchased a property after 27 March this year will be unable to claim interest from income received and in fact they will have to pay tax on that income. And those who purchased an investment property before that will be on a sliding scale on the amount they can claim against income from their investment. I pity our young people keen to get on the property ladder.