Rental property regains top spot with investors
Wednesday 14 November 2012
Rental property is again the most attractive investment to New Zealanders, ASB’s latest investor confidence survey shows.
The survey, released today, shows investors’ confidence has climbed to the highest levels since 2010.
The results are based on interviews with 786 people.
ASB head of wealth advisory Jonathan Beale said it indicated that investors were taking a less defensive stance and considering the benefits of higher-risk, higher-yield investments.
Rental property confidence has returned to historically high levels.
In Auckland, 25% of those surveyed said property would offer the best returns over the next 12 months. Beale said that was a level not seen since 2009.
But property’s popularity is not just confined to our biggest city.
There was a 5% jump in confidence in property among non-Auckland investors.
Beale said: “The continuing strength in investment property and lift in managed investments appears to have come at the expense of less risky investment classes, such as term deposits.”
Only 7% of investors said the sharemarket would offer the best returns over the next year.
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House prices may start to taper off in the coming years as supply finally starts to meet demand - but no one should be holding out for a huge price correction.
Booming commercial property sector could offer alternatives to investors worried about what lies ahead for the residential property market.
The Reserve Bank says more official cash rate cuts are likely as it fights to get inflation into its target range.