29 May 2006
Property investors in a mood to buy
Close to 90 per cent of property investors intend to increase their holdings in the next five years in spite of
indications price increases may be leveling off, the ANZ/NZPIF Property Investment Survey shows.
NZ Property Investors Federation president Martin Evans says virtually no-one expects prices to rise faster than they
have in the past two years.
“The survey shows investors are confident that the long term trends will favour property and the returns it can
generate. The Government’s intended capital gains tax on direct overseas investment, announced since the survey was
undertaken, may be a further encouragement for investors to increase their property holdings.”
“The price paid for a property is not so important for those who long term investors and are taking a 10 or 20 year
view,” Mr Evans says
“Any slow down in prices is likely to be used by those experienced property investors to further expand their
portfolios.”
Most federation members are focused on rental streams rather than solely capital gains, Mr Evans says.
“The median property investment ‘breaks even’ in terms of profit and loss. However many in the sector are taking
advantage of the Loss Attributing Qualifying Company regime to deliver benefits.”
The findings ANZ/NZPIF Property Investment Survey are based on information from 378 respondents. The 2006 survey,
conducted earlier this year, was the third by the Federation which represents the interests of property investors
throughout the country.
“We believe our survey is an accurate reflection of the opinions of those most closely associated with property as an
investment vehicle,” Mr Evans says.
ENDS