By ANNE GIBSON
Good advice is even more important given the number of investors being attracted to property.
Increasing confidence in the housing market is making some of its movers and players a tad nervous.
Andrew King is an investor and industry chief who says it is time to be cautious.
"People are getting
swept away by the marketing hype," says King, president of the Auckland Property Investors Association and editor of monthly magazine Kiwi Property Investor, a title he sold last year which was then renamed.
The $220 billion invested in residential real estate - most of that in the hands of owner-occupiers - reflects the sector's importance to the economy. King calculates that about 160,000 investors own residential real estate but believes people need to be better educated and run their investments as a business "efficiently, professionally and, most importantly, profitably".
King and Property Investors Federation vice-president Lisa Dudson have written The Complete Guide to Residential Property Investment in New Zealand (Random House, $24.95), released last Friday.
It offers advice on structuring ownership, tax, setting goals, finance, legal aspects, valuation, selecting a property manager, risk analysis, a buyer's checklist, insurance, subdivision and unsavoury aspects such as evicting tenants, mediation in a dispute and enforcement of orders.
The book identifies the most common problem areas as tenants' damaging the property or not paying the rent.
The chances of a landlord's receiving compensation for damage caused by tenants will depend a lot on record-keeping: "The two key factors you will need to prove is that the damage occurred during the tenancy and that it was beyond reasonable wear and tear."
Dudson and King also run a mentoring service aimed at tailoring property investment advice to the investor.
