20 June 2012
New Zealand property has seen a considerable rise in prices in recent times, with the cities of Auckland and Canterbury experiencing the height of this. However, property prices in New Zealand’s main centres are set for a further significant rise according to property investment expert Olly Newland.
With banks offering low interest rates, Newland believes there is little incentive to put money into savings accounts and therefore people were more readily choosing real estate as an investment vehicle.
He said those investors were putting pressure on property prices and that was likely to continue as investment in real estate is easy to understand. Recent reporting from the Bank of New Zealand and the Real Estate Institute of New Zealand has indicated this is the case with statistics showing a strong return of investors to the market.
With low interest rates, rising house prices and financial companies no longer considered a real option due to a volatile sharemarket, property has become the obvious choice for investors. According to Newland, this was particularly attractive for young investors who were looking for long-term income and return facing the possibility of a rising pension age