We are often told in New Zealand that we ‘over-invest’ in housing, like its a specifically Kiwi thing to do, it’s not.

A report I was recently reading from the IMF on Global Housing Markets stated that:

“Housing is an important component of investment and in many countries housing makes up the largest component of wealth.  The majority of households (globally) tend to hold wealth in the form of their homes rather than financial assets.

In France for example, less than a quarter of households own stocks, but nearly 60 percent are homeowners.

Housing also plays other important roles in the transmission of monetary policy. Adequate housing can facilitate labour mobility within an economy and help economies adjust to adverse shocks.  Hence, a well functioning housing sector is critical to the overall health of the economy”

So the next time some tell you that you need to sell your housing assets and buy stocks, hold your ground.  Yes, having some exposure to the stock market can make sense over the longer term, if you can stomach the ups-and-downs, but you don’t need to accept people telling you owning property is a silly thing to do.

Our Kiwi love of property is clearly widely shared around the world.

John Kenel, Assured