Investing made easy: Knowledge is power

With the credit crunch blues still hanging over us, borrowing is harder to come by and banks want to see firm evidence that serious thought has gone into an investment before they will back it.

"The DIY attitude still pervades in terms of - ‘I'll ask my friends', or ‘I won't take any advice at all and just hope it works out'," says Craig Moffat, ANZ general manager of specialist distribution.

"I think the size of the investing decisions that we're talking about here require them to think differently if they want to make it a success and not end up in the challenging situations that some New Zealanders are finding themselves in at this point in time," he says.

Moffat says bankers are looking for people who are structured and organised in the way they go about their residential investment. This means investors starting out need to be clear on exactly what they're trying to achieve; have a firm game plan to achieve it; and a strong network of experts alongside to help them get there.