ZB Homes has noticed a recent increase in investors interested in purchasing fixed price, turnkey investment properties.
With prices for sections coming down in Cambridge, investors are looking for opportunities to secure a modern, quality home that will yield a positive return.
As a trusted building company with more than 20 years of experience, we can share our insights into why buying a new build is a great option for investors looking to start or add to their investment property portfolio.
The high price of older homes
In Cambridge, the prices of older homes are still relatively high. According to realestate.co.nz, the median sale price in Cambridge over the past 12 months is just over $1 million.
In contrast, ZB Homes can provide a new turnkey home from $989,000. With a rental return of $820 per week, this is an attractive option for investors.
Lower maintenance costs
Older rental properties generally require more maintenance. As homes age, more things start to break and need fixing, which reduces the income you earn from the property.
In contrast, new builds need little maintenance. With ZB Homes, our quality workmanship and Master Builders 10-Year Residential Guarantee means you can be confident your home will be a reliable investment.
New builds are exempt from tax law changes
Law changes in 2021 meant landlords could no longer deduct interest costs, meaning they effectively would have to pay more tax on their rental income.
An exception was made for new builds, so investors can still deduct interest on homes built after 27 March, 2020. With this benefit, purchasing a new build is a more attractive option for investors.
New builds attract quality tenants
A high quality property attracts high quality tenants. People expect to pay more to rent a new home, so your property will potentially attract better tenants who pay rent on time and will look after it.
From a tenants perspective, a new home is associated with a warm, well-insulated, modern property that’s well equipped, and they’re willing to pay more for that.
New builds also tend to attract tenants looking for a home for a longer term, so you’re likely to experience lower tenant turnover. This means your home will be occupied for longer, enhancing your income potential.
New turnkey homes are ideal for investors
As an investor, you don’t want to be paying a mortgage on a property that’s not earning income. The advantage of purchasing a new home on a turnkey contract is that you don’t start paying until it’s completed.
This significantly reduces the risk of the property sitting empty, as you can immediately start to secure tenants when the home is ready.
