Property investors start young

By Chris Hutching

Friday 21st May 2004

The country's first survey of property investors shows a surprisingly low age profile and a high degree of confidence despite the prospects of a declining market.

The NZ Property Investors Federation, in conjunction with ANZ Bank, carried out the survey to gain further insights into the profile of portfolios held and the investment process, NZPIF president Craig Paddon said.

There are about 300,000 landlords and that figure is expected to grow as home ownership decreases. The NZPIF, the main body representing investors, has 14 affiliated associations and more than 3500 members.

ANZ economist David Drage said the survey showed property investors were experienced and many had been in the industry for a long time.

The majority of respondents had at least six years' experience and more than 57% had been investing for more than 10 years.

"The importance of this is that these people have been through the economic cycle and were investors in the late 1990s when returns from property were lean," he said.

The survey was also a barometer of confidence. Drage said there was still a high level of confidence despite predictions of a downturn. The survey showed 48.9% of respondents bought a property last year and nearly 17% had bought one this year.

Drage said although the market was at a peak investors could still find good properties that met their investment criteria. It also showed 65.7% of respondents intended to make further purchases this year. Just 4.1% said that they intended to reduce their portfolios.

The age of property investors was evenly spread. "There is a perception most property investors are older people. However, nearly a quarter of the respondents are under 40," Drage said.

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