Prices set to rise further: Newland
He said investors were choosing real estate over other investment vehicles because the low interest rates offered by banks offered little incentive to put money into a savings account, the sharemarket was volatile and finance companies were no longer an option.
“What the point of putting money in the bank where you’re taxed on it, there’s no depreciation…”
He said those investors were putting pressure on property prices and that was likely to continue. “[Property investment] is easy to understand and the banks are lending 70, 80, 90 per cent.”
His statements are backed up by statistics from the Real Estate Institute of New Zealand and BNZ, which reported last week that there had been a strong return of investors to the market.
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