Rental property top investment choice for Aucklanders

Aucklanders rate rental property as their preferred investment class, bucking the national trend for favouring term deposits, according to the latest ASB Investor Confidence Survey.

Monday, May 16th 2011, 12:00AM

by The Landlord

Across New Zealand the most popular investment class was term deposits, with 19% of respondents saying they offer the best rate of return.

Nationwide, rental property was second at 15%, followed by KiwiSaver and bank savings accounts at 12% each. Managed funds/unit trusts/superannuation were favoured by 10% and shares 6%.

However, in Auckland rental property took the top spot with 19%, term deposits second at 17% and KiwiSaver third with 12%.

"There are significant differences in investment sentiment between Auckland and the rest of the country," said ASB head of Private Banking and Wealth Management Jonathan Beale.

"The results show that we are a nation of two halves when it comes to investments. Aucklanders rate rental property above all other investments, while the rest of New Zealand puts term deposits well ahead of everything else."

Outside of Auckland term deposits were rated the best investment class at 22%, with rental property a distant second equal with bank accounts at 12%.

"The popularity of rental properties in our largest city could be due to several factors, including the relative buoyancy of the property market in Auckland. However this popularity follows a flatter period which started a year ago, so time will tell whether this love affair with Auckland rental property will continue, especially considering last year's changes to tax on rental property, and forecast increases in interest rates."

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