Bernard Hickey delivers an investing report in association with BNZ on the ratio of median house prices to median rents which shows returns ranging from 4% to 5% before maintenance and rates. This suggests residential property investment only makes sense if capital gains are made.
property has been a good investment since feudal times.
inflation is likely over the next 5-10 years so property will continue to be a good investment.
it is also less risky – hanover is just a taste of what could conceivably happen to to investments in financial assets in the future, particularly if we see a double-dip.
where are the capital gains in housing, when they are bulit to last only 50 years , where i ask ,
“This suggests residential property investment only makes sense if capital gains are made.”
Alert, Allert, PONZI scheme.