Shares beat property: FundSource
Monday 27 September 2004
Managed fund research house FundSource says forget all the hype about property, New Zealand shares are a better investment.
By The LandlordNumbers the company have crunched show that local shares have outperformed property at every point during the past 18 months.
“This result may not come as news to many,” Fund Source general manager Tim Anderson says.
While shares have given investors a better return than property in the past 18 months, FundSource believes this situation will continue looking forward.
“FundSource believes near term expectations for NZ equities continue to outstrip property.”
Anderson says what also may surprise people is the margin which shares have outperformed property.
Since March 2003, nationwide house prices have recorded gains of around 25%. In particular, on the basis of the latest Quotable Value NZ index – the official NZ house price measure - house prices until the end of the June 2004 quarter have risen by 25.6%.
Read More - Opens in a new window
Commenting is closed
Uncertainty continues to cast its shadow over the housing market but economist Tony Alexander has put together a list of reasons which offset the negatives and mean the market remains well-supported.
Auckland ’s long-term future is sound as well situated residential developments will always sell and demand for affordable housing remains strong, a leading non-bank property financier says.
New mortgage borrowing rose by roughly $1.6 billion in May as the property market showed signs of recovery from the Covid-19 lockdown.