Also, unlike shares, a generation of property investors don’t feel scarred by the October 1987 share market crash, where the value of high-flyers like Equiticorp, Chase, Euro-National and Anzon dropped like a stone, often to zero. Land still exists, none of these companies do.
ROSA WOODS/Stuff
Kiwis love the emotional attraction of “bricks and mortar”. Aside from weighing pros and cons of residential property as an investment, as a country we also need to weigh the wider social and economic impacts. Please don’t shoot the messenger here, but residential property is not a productive asset class for our country. It may have worked as a wealth generator at an individual level, but the sector does not create the knowledge-economy jobs, innovation and export earnings our country needs. From a NZ Inc perspective, it’s not where we should aspire to direct vast amounts of investment capital.
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