Sliding home values boost property returns

Property investors this year can expect a return to the days of positive cash returns for the first time in more than five years, say market watchers.

It's one of three market certainties investors can bank on as interest rates fall and house prices are tipped to slide another 5 to 8 per cent.

The second certainty is don't bank on values rising - for at least another 12 months, probably longer.

And the third is that house sales will pick up - not to the cracking pace of 2006 or early 2007 - but to surpass last year's dismal tally of fewer than 60,000 sales.

The chief executive of realestate.co.nz, Alistair Helm, said sales last year were 50 per cent down on 2007 and the lowest in 20 years.

To read the full NZ Herald article click here.

Posted: 4 Jan 2009

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