Investors lose confidence in rental property
Investor confidence in the level of returns rental property will provide in the next 12 months have fallen significantly.
Wednesday, April 23rd 2008, 12:00AM
by The Landlord
The latest ASB Investor Confidence survey shows that rental property remains the category investors are most confident about in terms of providing the best returns.
However, in the March quarter it fell three points. That is 19% of respondents picked it as the best returning asset class, compared to 22% in the previous quarter.
Its closes competitor is bank term deposits which rose two points from 14% to 16%. This means the gap between the two narrowed from 8 points to just three.
ASB head of investment services Jonathan Beale says rental property has been the “super star of the survey” over the years, outshining all the other assets.
He says there had been some expectation it would fall sooner than it has, rather it has plateaued on in recent quarters.
Beale says that bank is finding that there are a growing number of investors who are selling their properties.
“They have had a good ride and want to get out of it now,” he says.
Beale expects confidence in rental properties will decline further in the next surveys.
Find out what else investors are thinking here
| « No rate relief likely this week | Free Investment Property Showcase Events: Auckland, Wellington and Christchurch » |
Special Offers
Commenting is closed
|
|
Printable version |
|
Email to a friend |
