Sharechat Logo

Property saves the day

By Graeme Hunt

Friday 18th July 2003

Text too small?
Property, often criticised by commentators as a poor investment, is largely responsible for the surge in New Zealand private wealth in the past year.

In this, the 18th Rich List produced by The National Business Review or associated publications, the collective fortunes of 157 individuals and 37 families total nearly $18.4 billion, an increase of more than $3.2 billion in 12 months.

This is the largest year-on-year increase since the Rich List first appeared in 1986 (the previous largest rise was during the 1986-87 sharemarket bubble).

Few major businesses have been formed in the past 12 months but the increase in property values has benefited property developers and investors alike, compensating for weak share prices.

This tends to scotch the advice from politicians and financial planners on how people should save and increase their personal wealth.

Since 1840, despite odd downturns, property has proved New Zealanders' most reliable investment vehicle.

The absence of a capital gains tax is one reason for Kiwis' preference for property but they also seem to share an emotional attachment to the land.

Whether this is good for the country is a matter of debate but property pays its way when it comes to personal wealth-creation.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Asians, men more confident in financial markets than Pacific Islanders, women and poor people
June trade surplus $365M, higher than expected
Govt opts for sweeping review of 'underperforming' RMA
AFT gains Australian registration for intravenous Maxigesic
24th July 2019 Morning Report
Should Fletcher Building persist with Australia?
NZD weaker as greenback gains on news US-China trade talks to recommence
MARKET CLOSE: NZ shares extend gain as Mainfreight, A2 hit new highs
StretchSense directors appoint administrators
NZ dollar falls on news RBNZ is looking at "unconventional" policy

IRG See IRG research reports