ANZ/NZPIF Survey

09 Jan 2004

During January and February 2004 the NZPIF and ANZ bank undertook a survey of Property Investors in NZ.

Prior to this there had been no official survey of property investors in NZ, and therefore very little was known about the property investors’ community.

The objective of the survey was to gain a greater understanding of who was investing in property in NZ, what types of property they owned and the investment purchase process.

The survey was mailed directly to NZPIF members and inserted into the NZ Property Magazine. With almost 900 responses it has provided valuable insight into what is happening in a large section of the community.

Some key findings from the survey were:

• The average NZ property investor has invested in property for seven years with an average of two to three investment properties. This indicates a considerable amount of experience by individuals who have ridden out the lows and highs of the property market.
• The majority of investors purchase residential dwellings in the same city in which they live.
• While the average age of a person investing in property is between 40 to 49 years, over 20% of respondents were aged between 30 to 39. This is an indication that many people believe owning property is essential for preserving future wealth. The under 30s age group was under represented with only 5% of respondents falling into this age category.
• Investors in NZ are actively buying up properties, with up to 66% of respondents having purchased property within the last 14 months. A further 66% of respondents are actively looking to purchase more property over the next 12 months, which is indicative of their confidence in the property market and in property as an investment.
• 80% of respondents had a property portfolio valued at over $300,000 and 77% of respondents had over $100,000 worth of equity in their investment properties.
• Despite a large amount of equity being retained in properties, New Zealand property investors have a strong DIY attitude towards investing, and prefer to undertake the majority of pre-purchase property analysis themselves.
• This DIY attitude is also prevalent in regard to maintenance of their rental properties, and very few property investors use property managers or maintenance services.

The survey will continue to be run on an annual basis which will allow us to track trends and gather some good historical data.