Inside Money: Pavs and savs - what Australia and NZ have in common with housing

Both trans-Tasman central banks are dealing with similar housing-related issues. Image: Thinkstock.

This could be another pavlova.

Barely days after the Reserve Bank of New Zealand (RBNZ) proposed a crackdown on lending to property investors, the Aussies have latched on to the idea.

But as the Sydney Morning Herald article points out, both trans-Tasman central banks are dealing with similar housing-related issues.

"The challenge of the RBNZ reflects many of the issues facing the RBA," the article says, "which risks fuelling a dangerous run-up in house prices as it seeks to give a much-needed boost to the economy and ease upward pressure on the exchange rate by cutting interest rates."

Putting the squeeze on over-leveraged property investors is not just a politically palatable option for the central banks but, according to the RBNZ, a sensible risk-reduction exercise.

"Evidence from countries that have recently gone through a severe housing market downturn shows that residential property investors tend to have higher probability of default (PD) and loss given default (LGD) rates in such a situation," the RBNZ proposal says.

Renters, of course, would prefer the RBNZ takes the Russell Crowe line on the idea - let the Australians have it.

Australia is also eyeing up another NZ-pioneered housing initiative with federal Treasurer, Joe Hockey, muttering about allowing first-home buyers to tap into their super for a deposit - much like the KiwiSaver regime has allowed from year dot.

In a statement, Pauline Vamos, the Association of Superannuation Funds Australia (ASFA) - the peak super industry body - slapped down the mere thought of it:

"Policies that merely increase the capacity of individuals to pay for housing often have the effect of driving up housing prices, eroding any positive impact on housing affordability," Vamos said.

The KiwiSaver effect on housing prices in NZ has yet to be fully analysed - an effect just about to be enhanced under new, yet-to-be-finalised legislation - but give Vamos fair suck of the sav, she could be right.