Home Truths - Invest in knowledge

Up until the early 90s property investment in New Zealand was a lonely business.

With the exception of the occasional seminar in the main centres, and a handful of homegrown books by the likes of Bob Jones and Olly Newland, there were few opportunities for budding investors to compare their own experiences with those of others in the industry. Most of us had no choice but to learn from our own, often expensive, mistakes - and the road to success was littered with many first-time property investor casualties. Fortunately, things started to change in the 90s and property investors are now spoilt for choice when considering the tools and support available to them.

One of the more significant developments over the past 15 years has been the rise of property investor associations in New Zealand.

These groups are run by existing investors, for the good of the industry, and play an invaluable role in providing support, education, and an opportunity for property investors to network at very little cost. The Auckland Property Investors Association, the largest in the country, has almost 1300 members and has expanded, in recent years, to offer an impressive range of services. These include a monthly "keynote" meeting featuring high profile guest speakers which is free to members, plus a range of smaller local monthly meetings throughout Auckland.

Property investor associations are also playing an increasingly important role in influencing the shape of central and local government policy when such decisions affect our industry.

The last few years have seen an explosion in the number and type of property investment seminars that are available to the public. This trend has made previously exclusive information much more accessible, but investors also need to be discerning when attending events of this type. Some seminars are of a sub-standard quality, provide questionable content, or are merely a front for the marketing arm of an organisation trying to sell investment properties.

"Free" investment seminars are usually a promotional tool designed to sell a product or service, or act as a lead-in to an expensive paid event by providing a taste of what that event might offer. Notwithstanding these concerns, seminars are a very good way to learn and investors should attend them whenever possible, but remember to do a little homework on the person or organisation fronting them.

In Auckland, the APIA hosts at least four one-day reasonably priced seminars per year, and joint ventures with other organisations that it considers credible and trustworthy.

Another positive development in the ongoing "professionalisation" of the property investment industry has been the emergence of property investment consultants and mentors. These are people who operate often full-time businesses offering advice and practical support to property investors. Using these specialists can be a very effective way to enter the industry or breathe life into your existing investment activities. But make sure that your chosen consultant is a successful investor in his or her own right and can point to a track record of success with other clients. The APIA is developing a directory of property investment mentors and consultants which will form part of a major redevelopment of its website, due to be launched within the next couple of months.

There are now excellent books, written by New Zealand property investors, in larger bookshops. Some outlets even have specialist sections devoted to books on property investment.

Look for books by local authors dealing with local situations, although there are a few good Australian books that are also worth a read.

The print media meanwhile provides excellent, regular information on trends and news in the industry to keep readers informed.

Publications such as The New Zealand Herald and New Zealand Property Magazine provide invaluable information and are also available online at www.nzherald.co.nz and www.landlords.co.nz respectively. Doing a Google search, using 'property investment' as your keywords will also turn up some useful information. But remember that information on the net isn't necessarily accurate or true, so confirm your information using more than one source.

To learn more about the APIA go to www.apia.org.nz or contact Ashley Church at ashley@apia.org.nz

* Ashley Church is CEO of Auckland Property Investors Association