Do you want to beat inflation?
Then you may want to read what Sam Stubbs, Tower’s investment head, said yesterday:
“We think that owning or buying a house is a good idea. Most people buy a house by taking out a mortgage. Having a mortgage on a house with inflation around the corner is not a bad thing.”
Stubbs said it was also a good time for people to consider moving out of a default KiwiSaver scheme where the investments were typically in fixed interest and cash.
“If you are in a default scheme you have had a great run. But the asset classes in the default schemes are likely to underperform this year.
Sam Stubbs. Photo / Janna Dixon
source: Time to buy property, says Tower (nzherlad.co.nz).
What he’s saying sounds a bit like this too;
House prices edging higher from second half of 2011.
That was a Key Forecast from the “Housing Market Update” section of the latest (20-01-2010) “BNZ Weekly Overview” from BNZ Chief Economist Tony Alexander.