Property investment has changed in recent years, but having support and advice from other investors is a good way to weather fluctuations and legal and market changes and come out on top.
Rachel Warrender has been a member of the Rotorua Property Investors' Association for four years and told The Daily Post the most valuable return on her membership investment has been the interaction with other investors.
"It's the networking - getting help with issues or answers to questions from other people who have already been there."
With more than 60 members, the association includes people who are just starting out in property through to those with large, established portfolios or who work within the property industry.
"The market does change but, through the association, you get to talk to people doing other things and you can learn from them. We are like-minded people, interested in investing in residential and commercial property - from people who are just starting out to investors with large, established portfolios."
Many of the more experienced investors have been through particular circumstances before and can talk about what worked and what didn't and different people have experience in different aspects of property investment such as buying and holding, buying and selling or trading.
She got into property as part of long-term planning for her retirement and still sees it as a good investment, despite the slump in the property market in recent years and changes in tax legislation such as the abolition of depreciation on buildings.
Warrender said buying a property below valuation was the key, but it was important to look at the investment from the perspective of the tenants you want to attract.
"Ask what kind of tenants you want and would they live in the property you are looking at. Do the numbers and see whether they stack up."
She works on the principle that, for every $100,000 she invests, she expects about $200 a week in rent and she also looks at how value can be added to the property by subdividing, adding an extension, putting in a new kitchen or bathroom or updating soft furnishings.
Membership of the association costs $205 for an individual or couple and $220-$460 for corporates and Warrender said that investment more than paid for itself through member discounts at a range of businesses, a subscription to the New Zealand Property Investor Magazine - including the Rotorua/Tauranga edition, and access to resources such as tenancy agreements through the New Zealand Property Investment Federation.
The association has its own website at rpia.org.nz and is also active on Facebook.
The June meeting of the Rotorua Property Investors' Association is on Tuesday, June 12, from 5.30pm. It will include a presentation on landlording made easy by Brian Kerr, author of The Complete Guide to Landlording. For information contact info@rpia.org.nz