Investing report: Why property investments are overvalued without capital gains

Bernard Hickey delivers an investing report in association with BNZ on the ratio of median house prices to median rents which shows returns ranging from 4% to 5% before maintenance and rates.

This suggests residential property investment only makes sense if capital gains are made.

Duration : 0:2:7


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4 Responses to “Investing report: Why property investments are overvalued without capital gains”

  • keithholden says:

    Get the Chinese to …
    Get the Chinese to build our houses for 5 bucks each.
    Then we wont need to rent or pay mortgages

  • ukulelectric says:

    property has been a …
    property has been a good investment since feudal times.
    inflation is likely over the next 5-10 years so property will continue to be a good investment.
    it is also less risky – hanover is just a taste of what could conceivably happen to to investments in financial assets in the future, particularly if we see a double-dip.

  • bookbinder66 says:

    where are the …
    where are the capital gains in housing, when they are bulit to last only 50 years , where i ask ,

  • nedbeaty72 says:

    “This suggests …
    “This suggests residential property investment only makes sense if capital gains are made.”

    Alert, Allert, PONZI scheme.

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