Wanaka Sun | 21 - 27 July 2016 | Edition 775

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ANNABEL’S PLANS APPROVED Celebrity chef Annabel Langbein, has had her application to construct three accessory buildings and amend the use of a filming shed approved.

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LAKE SNOT Experts from here and overseas are calling for more research.

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INSIDE THIS WEEK PLASTIC FREE JULY: PAGE 5 YOUR VIEWS: Page11 SPORTS: PAGE16 DELIVERED AND FREE

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Connecting people and organisations GLENDA TURNBULL journalist@thewanakasun.co.nz new homegrown initiative is carrying out the first comprehensive study of community assets and services in Wanaka and surrounding areas. LINK Upper Clutha (LINK) - formerly the Upper Clutha Community Development Scheme - is a locally-driven, central government funded entity focused on connecting people, organisations and infrastructure to ensure a united approach to community development and social and economic enterprise. With the region experiencing unprecedented growth and both businesses and school rolls growing at a phenomenal pace, there are hundreds of community groups and social services in existence in the Upper Clutha. At this crucial point in Wanaka’s development, LINK’s purpose is to understand what services and organisations exist in the Upper Clutha already and facilitate a strategic, coordinated community infrastructure to future-proof success as a region. A $240,000 grant over three years from the Department of Internal affairs in October 2015 enabled a local volunteer steering group to be formed. Branding of LINK is due to begin and now employs two people on a part-time basis. Wellknown community leader and former corporate strategy and communication specialist Kathy Dedo has been appointed as LINK’s Facilitator and experienced project manager Sophie Ward, is the LINK Coordinator. Continues page 2

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PHOTO: MAL HASKINS

Reserve Bank to up deposit requirements GLENDA TURNBULL journalist@thewanakasun.co.nz he Reserve Bank has released a consultation paper this week proposing changes to loan-to-value restrictions (LVRs) to further mitigate risks to financial stability arising from the current boom in house prices. The proposed new restrictions will require no more than five percent of bank lending to residential property investors across New Zealand would be permitted with an LVR of greater than 60 percent (a deposit of less than 40 percent). In addition no more than 10 percent of lending to owner-occupiers across New Zealand would be permitted with an LVR of greater than 80 percent

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are more people coming in than properties available. The danger is if there are less properties available for rental, rents could potentially rise as well. What we need is more affordable houses built that are available to be rented at a reasonable price,” he said. Loans that are exempt from the existing LVR restrictions, including loans to construct new dwellings, would continue to be exempt. Reserve Bank governor Graeme Wheeler said, “The banking system is heavily exposed to the property market with residential mortgages making up 55 percent of banking

system assets. Investor lending has been increasing rapidly and is a significant contributing factor to the current market strength. The proposed restrictions recognise the higher risks associated with such lending.” These proposed new restrictions would take effect on September 1 and simplify the LVR policy by removing the current distinction between lending in Auckland and the rest of the country. “A sharp correction in house prices is a key risk to the financial system, and there are clear signs that this risk is increasing across the country. A severe fall in house prices could have major implications for the functioning of the banking system and cause long-lasting damage to households and the broader economy,” Graeme said.

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(a deposit of less than 20 percent). Local Mike Pero advisor Mark Magill said the Reserve Bank decision was expected. “The Reserve Bank wants to cool the housing market, but the 40 percent deposit required for investors was more than most were expecting. It will make a difference, but the decision does not apply to finance companies, so there are ways for investors to find other solutions,” Mark said. Mark said the main problem in Queenstown and Wanaka was supply and demand. “In Queenstown and Wanaka there

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