FEATURE INFLATION
One of the reasons investors favour real estate is due to its ability to weather the pressures of rising inflation and emerge with its values intact, even improved.
However, recent rising inflation is having differing impacts on the New Zealand real estate sector. It's tough to enter the property market, agents are having a harder time finding buyers, and renters are struggling to find affordable options.
Conversely, landlords unburdened by rising borrowing costs are riding the storm comfortably.
Inflation relates to an increase in the average prices of a particular economy's goods and services over a set period of time. In New Zealand, this is usually measured in how much prices may have changed over a quarterly period and is tracked by Stats NZ within the consumers price index (CPI).
Another way to look at inflation is as a reflection of
