A well known and "trusted" company is likely to offer Hanover and United investors a rival offer to Allied Farmers' proposal, a source says.

While hurting Hanover investors struggle with the loss of millions, the company's owners continue to splurge on upmarket properties.

Hanover investors will have to make a decision whether to approve the company's proposed debt-for-equity swap with Allied Farmers.

The $400 million deal by Allied Farmers to buy assets from Hanover Finance has been greeted with scepticism.

Hanover owners Eric Watson and Mark Hotchin are tipped to come off well from a proposed deal to bail out investors.

Allied Farmers has signed an agreement with Hanover Finance and its subsidiary United Finance worth approximately $400 million.

Hanover Finance says some of its property investments are showing signs of life.

Some tightening of tax rules surrounding property is inevitable, ANZ economists say.

New Zealanders are still optimistic about the state of the housing market, according to an ASB survey.

Hanover investors' $500 million is tied up in a vast spread of partly built luxury housing estates and resorts - one still a hole in the ground.

House prices continued their upward momentum last month.