The only danger I see in this mood upswing is a rush by newbie investors into slum landlordship buying small boxes in poor areas and exacerbating the situation.
Go for a drive around the depressed areas where the cheapest houses are and see for yourself.
Any self-respecting investor should keep well away putting money into these areas as it will inevitably leads to losses, and sleepless nights.
In the past few years the a large number of ex property “gurus” have gone broke with one common theme connecting them all.
They all invested in slums. Don’t make the same mistake,
Investors return to property
JAZIAL CROSSLEY stuff.co.nz 22/05/2012
With low mortgage rates and rising rental returns, New Zealanders have returned to property as their favoured investment.
For the first time since the beginning of 2010, rental property came out top in ASB’s latest quarterly investor confidence survey of investments that people felt would give them the best return.
ASB wealth advisory head Jonathan Beale said 19 per cent of investors surveyed believed rental property offered the best returns, up from 14 per cent in the last quarter. Kiwis’ enduring love affair with rental property had rekindled, after 24 months in the cold.
“The low-interest-rate environment seems to be influencing investor perceptions markedly. Investors appear to be moving away from the traditionally lower-risk investment options, and searching for those with the potential for higher returns.”