Rentals still top priority for investors

26/02/2013 2:48:39 p.m.

Daniel Lang wrote:

Don't know why it is so popular. Commercial property has a healthier return usually and investors can no longer claim depreciation unless the property in question is older than 50 years. Good if you invest in Dunedin, but miserable elsewhere. One day there's going to be a short sharp shock in this area because it is still retaining its reputation as a good investment, despite the opposite being true. It's pretty positively geared at the moment, ie, easy to get a better percentage return than the percentage you're paying on any mortgage, however that will change shortly and rental properties will quickly become not so viable an investment for the majority of mum and dad investors.

26/02/2013 1:14:57 p.m.

Mike wrote:

Take the volitility of the shares, sure it was up 24% last year, but it also had major downs just before that. How much of the 24% up was added listings like the Fonterra float?

If take property in the last 25+ years and compare, it has probably risen more than the sharemarket, and it has fallen less, ie been less volitile. Most of the rise isn't in value, but speculation, or added listings, even just inflation.

How about reporting that?