The popularity of rental property as an investment took a dip in Auckland, bucking the nationwide trend, though it still remains Kiwi’s second favourite type of investment, according to the latest ASB Investor Confidence Survey.
The survey found investors view rental property as the second best value investment behind term deposits, up one point to 16%.
Outside of Auckland rental property climbed three points to 16%, however within Auckland the popularity of rental property fell from 19% to 14%.
"This could be due to changes to tax on property investments announced in Budget 2010, which came into force on April 1, 2011," said ASB head of private banking and wealth management, Jonathan Beale.
The survey found term deposits remain the favoured investment vehicle, up two points with 21% of investors believing they offer the best value of all investment types.
Term deposits were followed by rental property, bank savings (steady at 12%), KiwiSaver/managed investments/unit trusts/ superannuation (9%) and shares (8%).
Overall investor confidence continued to decline over the three months to June, falling seven points to a net 3%, with an almost even split between those expecting better or worse investment returns.
"The strengthening local economy could create more optimism among investors in the coming months," said Beale.
"However the recent uncertainty around US and Europe and the impact of these issues here in New Zealand, may mean that investors continue to look to perceived safer investment options."