Property Investment Information

I’m very please to announce that a desire for good information on investment property has seen The Complete Guide to Residential Property in New Zealand placed at number four in the New Zealand non-fiction section of The Booksellers Associations annual “Best of the bestsellers list” for 2003.

This placed the book just under The Lord Of The Rings Location Guide Book and ahead of Century In Black. You know a topic is popular in New Zealand when it comes ahead of rugby.

It is great that so many people are taking the time to get a good basic understanding of investment property and I hope that the information will prevent many investors from making mistakes. There are so many different ways to invest in property that it is extremely important to analyse where you are now, your own strengths and weaknesses, plus what you want out of property before you can decide on what strategy you are going to choose.

So many people want to know the one best way to invest in property, but I’m afraid it isn’t that easy. What is right for one person may be totally inappropriate for another.

This was the catalyst for my second book, Planning for Property Success, which looks at how individual investors can come up with a strategy for investing in property that meets their goals and personal circumstances and thereby gives them a much better chance of succeeding.

Property prices have been soaring for around 18 months now and many people are looking to invest in rental property to provide for their future. While this is a great ideal, I would advise investors not to rush out and buy a property without knowing the fundamentals. I’ve seen many people buy property that isn’t suited to their circumstances. They may be on a low income but buy property with a low rental yield. Or they may be on a high income but have little equity and buy property with low capital growth potential.

It is so important to analyse your own situation before rushing out to invest in any old property. Both new and experienced investors should also consider “What-if” scenarios before making new purchases. This is especially true in these times of changing circumstances.

• What if property prices ease or fall back?
• What if interest rates rose by 2 points?
• What if rental prices fall by $10 or $20?

If you could not afford to hold on to a property under these circumstances, it may not be the best property for you.

Apart from books and magazines on investment property, there are other sources of good independent information for property investors, especially on websites. Websites are available for Property Investor Associations around New Zealand (www.NZPIF.org.nz) and Tenancy Services (www.tenancyservices.govt.nz).

Calculators for working out your net worth and cashflow situation, along with other information, can be found at PropertyInvestor.Info.

Seminars can provide good information, although you should be cautious if the presenters are involved in selling property as well, as this could taint the information they provide.

Signs of a slowdown in the market are starting to appear, however it usually takes a while for momentum in the property market to actually subside. Consequently it may not be a good idea to wait for any crash that an investor may expect, before actually making a purchase. Having said that, it is difficult to purchase bargains at present, so do-ups or value added properties are looking pretty attractive.