Property still tops with investors

According to the latest ASB Bank Investor Confidence Survey residential property remains the favourite investment, with 24% of people - up 1 percentage point from three months earlier - expecting it to provide the best returns.

Term deposits were ranked second on 13% (up 1%). Thanks to the 7% plus rates on offer term deposits had a strong end to the year and look to be closing the gap on residential rental property.

Shares were rated third on 10%, followed by managed investments on 9%. Those in the top of the North Island and South Island continue to prefer residential rental property ahead of managed funds. Those in the lower North Island, who had previously held a more neutral position with the two asset classes had a major reversal in the fourth quarter with a 18% change leading to a 20% preference for residential rental property (from 2%).

One of the big changes in the latest survey was amongst those commenting on their main investment.