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Property investment has become increasingly unpopular due to lending restrictions, low rental yields, fear of interest-rate rises and the threat of price drops similar to those in Australia. 

The trend to owning residential investment property appears to be running out of puff. Auckland house prices are flat after years of galloping increases; more and more houses are being passed in at auction and the Reserve Bank of New Zealand is now easing up on lending restrictions intended to curb the buyer mania that was translating into risk for the financial system.

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