Kiwi land not such a bargain

Last updated 05:00 04/02/2013

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A global bond fund head's suggestion that land in New Zealand was a safe investment should be taken with a pinch of salt, economists say.

Bill Gross, founder of US-based Pimco, said "one of our investment committee members swears he would buy land in New Zealand and set sail" in the present economic climate. Most commentators contacted by BusinessDay agreed Gross' reference was probably on the flippant side.

"From the US, given where the cross is at the moment, New Zealand land would be very expensive," said ANZ senior economist Mark Smith.

It was also impossible to think of New Zealand in isolation from the international economy, said NZ Institute of Economic Research chief economist Shamubeel Eaqub.

"But his point may more be along the lines of at least you will have a lovely farm in a beautiful country."

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