Real estate market wooing investors

Low fixed-term deposit returns from banks and falling house prices might drive investors to consider becoming landlords.

Andrew King of the Auckland Property Investors Association said rental property was a realistic alternative to fixed-term deposits and other forms of investment but only if people were not looking for immediate capital gains.

Don't seek that for at least three years, he advises.

Investors appear to have more appetite for buying property now that property prices and mortgage interest rates are sliding, he said, and a number of landlords told him around Christmas that it was a good time to buy.

"Landlords are concerned about cash flow and with interest rates down, cash flow is much improved. Many of our members were cash-flow neutral but with falling interest rates, they will start to make money so potentially more people will buy," King said.

To read the full NZ Herald story click here

Posted: 31 Jan 2009

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