Do you really understand investing in new build properties? Here’s a quick guide to the key points for including new builds in your investment portfolio.

Recently, New Zealand’s economic policies and tax rules have increasingly favored investing in new build properties. Lower deposit requirements for investment loans, fully deductible loan interest, and lower maintenance costs are some natural advantages attracting investors to consider new builds as part of their portfolios.

New builds are indeed warm and clean, ready for tenants to move in without needing renovation or expansion, and they tend to have fewer rental disputes. But does having new build properties in your portfolio mean you can just sit back and relax?

To dive deeper into new build property investment, we recommend a new book by Monica Chen, the Head of Uno Property Management: Navigating Auckland’s New Build Investments: Essential Property Management Insights. This book offers a comprehensive look at new build property investment and provides insights from a property management perspective, including how to select the right new build property for your needs and what to watch out for.

Monica points out that while new builds have many advantages, they don’t mean you can just relax. Although they reduce renovation and maintenance hassles and offer stable rental returns, their value growth depends largely on market trends and lacks opportunities for value enhancement through renovation or expansion. So, investors should have realistic expectations. Monica also advises new investors to conduct thorough property inspections to ensure there are no structural issues and to do some due diligence on the developer.

So, is new build property investment suitable for everyone?

Monica provides a clear perspective in her book: “Whether a new build is a good investment for you depends on your investment strategy and life goals. If you have a busy life and need to balance work and family, new build properties can be a great choice for stable passive income over many years. But if you have experience in residential construction or land development and want to create higher-density projects or seek capital growth through renovation and expansion, then investing in new builds might not be the right direction.”

Of course, whether you’re interested in buying new build investment properties or focusing on development projects, tenant preferences are a crucial factor. Monica’s book also includes several case studies from Uno Property Management, showcasing rental performance of different new build properties, helping investors understand tenant needs and preferences.

If you want to learn more about investing in new builds in Auckland and gain expert insights, scan the QR code below to download the book. We believe you’ll find valuable information in Monica’s book!