House Prices

Property investors ignore gloom

Forget talk of a residential property bubble bursting - investors' confidence remains high, a survey has found.

Wednesday, May 04th 2005

Despite faltering house sales and clear signs of a slowing economy, the survey of more than 1000 property investors by BankDirect and landlord magazine KPI showed 53% of property investors thought now was a good time to buy, with just 23% saying the opposite.

But despite the optimism, the survey found many investors displayed worrying signs of amateurism when it came to managing their investments.

Of those surveyed, 53% admitted to never having done a chattels valuation, and 46% owned their rental property in their own name rather than in family trusts or loss-attributing qualifying companies.

KPI editor Gez Johns said: "The most striking fact is that more than 50% of current and potential investors seemingly couldn't give a stuff about what the economy is doing."

Johns said the survey seemed to show two opposing property markets had developed in New Zealand - pessimistic owner-occupiers and optimistic buy-to-rent investors.

BankDirect managing director Jim Anderson was also startled by the depth of optimism, particularly compared to the gloom of the general public.

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Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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