Property investors ignore gloom
Forget talk of a residential property bubble bursting - investors' confidence remains high, a survey has found.
Wednesday, May 4th 2005, 7:59AM
by The Landlord
Despite faltering house sales and clear signs of a slowing economy, the survey of more than 1000 property investors by BankDirect and landlord magazine KPI showed 53% of property investors thought now was a good time to buy, with just 23% saying the opposite.But despite the optimism, the survey found many investors displayed worrying signs of amateurism when it came to managing their investments.
Of those surveyed, 53% admitted to never having done a chattels valuation, and 46% owned their rental property in their own name rather than in family trusts or loss-attributing qualifying companies.
KPI editor Gez Johns said: "The most striking fact is that more than 50% of current and potential investors seemingly couldn't give a stuff about what the economy is doing."
Johns said the survey seemed to show two opposing property markets had developed in New Zealand - pessimistic owner-occupiers and optimistic buy-to-rent investors.
BankDirect managing director Jim Anderson was also startled by the depth of optimism, particularly compared to the gloom of the general public.
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