Forget talk of a residential property bubble bursting - investors' confidence remains high, a survey has found.
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.
'We'd have to go back to early 2002 to find a proportion of equally confident people among the general public regularly surveyed by the ASB,' he said.
The general public had no confidence in the housing market, he said.
The survey has also dispelled some myths about property investors.
It found that 47% used equity in their homes to buy their rental properties; but 37% did it the hard way, by saving deposits. Only 3% had got on to the investment property ladder after receiving an inheritance.
The meteoric rise of the property market has enabled a lot of younger people to invest in property, as the value of their homes has freed equity for investment. Of those surveyed, 47% bought their first home before they were 30 and 3% said they were 20 or younger.
More than a quarter were aiming for tycoon status by owning 10, or more properties.
Johns said the property of choice for almost three in four investors was a house, with just 12% preferring units and 9% investing in apartments. That indicated a fairly conservative property investment strategy, said Johns - buy an average house in an average suburb and watch its value grow.
KPI magazine is owned by Momentum Group, and is seeking to establish itself as an independent publication after deciding six months ago to distance itself from controversial property seminar organisers and property 'finders' Richmastery.
Johns says the decision was made to: stop the magazine being sniped at and, put an end to 'accusations rightly aimed at it that it was just peddling their [Richmastery's] wares.'
But Momentum Group is majority owned by Old KPI Limited; which is 100% owned by Zooloo Holdings; which indirectly owns Richmastery.
Johns said that as part of the distancing Richmastery was banned from advertising in KPI for six months.Need help or
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