Professional property investors remain confident

Sixty eight percent of those surveyed said that they intended to make further investments in the coming year. Only four per cent of respondents said they intended reducing their property portfolio.

“This indicates continued confidence in the property market,” New Zealand Property Investors Federation president Craig Paddon says.

The survey, which was conducted in February, is the official survey of the New Zealand Property Investors Federation (NZPIF) and it is done in conjunction with the ANZ.

The survey is distributed by the federation and the NZ Property Magazine. The research was conducted by Colmar Brunton.

Mr Paddon says the survey provides a comprehensive understanding of the issues facing property investors and a profile of their portfolios.

When ANZ and the NZPIF developed the survey last year, there was no extensive research available on the property investment community in New Zealand.

Another key finding of the survey is that property investors are more likely to invest for rental income than capital gains.

More than half (51%) of the investors surveyed said they had invested to access rental income, while 28% said they were investing mainly for capital gains.

Single people are more likely to invest for capital gains, while married or de facto couples are more likely to invest for retirement or family reasons.

Other key findings from the survey included:

• Residential property is by far the most popular property investment – 98% of survey respondents own residential property, 14% own commercial property and 11% own rural property (some own a combination of several categories).
• The majority (78%) invest only in residential property. Of the investors surveyed, 86% own more than one property; 53% own between two and five properties; and 33% own six or more properties.
• 68% intend to make further investments in the coming year, indicating continued confidence in the property market.
• Nearly seven out of every 10 investors surveyed own property worth more than $500,000 and four out of every 10 have property investments worth more than $1 million.
• The proportion of equity held by property investors varies, but the equity is most commonly between 30% and 50% of the total value of properties owned.
• The vast majority of investors do their own financial analysis of property investments. Only a small proportion consults accountants or financial planners.
• Magazines (88%) and newspapers (80%) are the most common sources of information for keeping up to date with the property market.

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