Despite the best efforts of the nay-sayers, and whats-his-name who wants to kill all cats, rental property remains the most trusted form of investment. The left leaning commentators, and politicians had better take note with their loony ideas of taxing the life out of property investors. They could end up badly stung by meddling in a veritable hornets nest.
Rentals most popular despite share surge
Term deposits shoved into second place, quarterly survey shows.
By Tamsyn Parker
Tuesday Feb 26, 2013
The belief in property was even higher in Auckland. Photo / Natalie Slade
Rental property is back on top as the most popular place for people to invest their money despite a stellar run from the New Zealand sharemarket last year.
A quarterly survey undertaken by the ASB bank found 19 per cent of those questioned believed property was the best place to make money for the last three months of 2012.
Rental property overtook term deposits which have been the most popular place to invest since the start of 2010, apart from one three-month stretch last year.
Bank savings accounts were seen as the worst place to invest with just 6 per cent support, while publicly listed shares were only slightly better at 7 per cent.
Bank savings accounts have been paying interest of between 2.5 to 3 per cent for on-call savings while term deposit rates are around 4 to 5 per cent a year.
Conversely, the New Zealand sharemarket’s NZX-50 index gained more than 24 per cent last year – its best year since 2003.
Jonathan Beale, head of wealth advisory at ASB, said appetite for rental property was nearly back to where it was before the global financial crisis, when it averaged around 22 per cent.