22 May 2012
According to the latest ASB Investor Confidence Survey, New Zealanders believe that rental property is the investment which offers the best returns.
For the first time since 2010, rental property held the top spot over term deposits, with 19% of respondents believing it offered the best returns, up from 14% last quarter.
ASB head of wealth advisory Jonathon Beale put this down to low interest rates and the confidence gained by investors from the low interest environment.
The confidence is also a likely result of growing activity in the New Zealand rental market with many parts of the country experiencing housing shortages translating into strong tenant demand.
Beale recognised that this is not an outstanding result as investors are likely to realise the continued value in rental property
“The evidence I’m seeing and hearing as well is that it’s probably not a blip, people are thinking this is a good time to get back into rental property.”
According to the survey, the previous top spot of term deposits was the second best option (16%), followed by superannuation/managed investments (13%), KiwiSaver/shares (10%) and bank accounts (8%)