New homes command higher rent, attract careful tenants, meet the new Healthy Homes standards, are less likely to need repairs, and are easier to maintain.

As New Zealand’s most trusted home builder, GJ’s are building more properties for the rental market than ever. If you’re thinking of starting your investment property journey, here’s a summary of why building new is a smart strategy.

Less Than You Think

If you can afford an existing property, it’s likely you can afford to build a new property. Contrary to common assumptions, new builds can be cost competitive. They’re often located on the outskirts of older residential zones, where land costs are lower. In other cases, new builds happen within older residential areas where land has been subdivided or redeveloped. So, you get a smaller section, but all the benefits of a brand-new home.

Always keep in mind that you’re looking at long-term capital gain, as well as rental yield. One day you’ll want the property to deliver a good return. We know that a recently built home, which is fully permitted and constructed to modern standards, will usually achieve more buyer interest and a higher resale price than an existing home.

More Income

A new build means you get the attractive street front and modern floorplan that tenants want. Depending on your budget, you can build a property with stand-out features, like a master suite, multiple bathrooms, a kitchen with a scullery, an extra lounge, a double garage and a north-facing outdoor entertainment area.

Energy efficiency is also a benefit tenants look for, because double glazing, heat pumps and high levels of insulation help keep their electricity costs down.

When you buy an existing home that’s shabby or doesn’t quite work for a modern lifestyle, you might need to do major renovations before you can maximise rental yield.

Cheaper To Insure

A new build is often cheaper to insure than an older home, especially a home built before 1935. Insurance companies recognise the lower risks of a new home with lower premiums, which is a win for your peace of mind and your wallet.

Modern building materials generally mean less maintenance, so your expenses will be reduced. With guarantees on materials and workmanship, you won’t have to worry about the costs of unexpected issues.

GJ Gardner Homes is proud to be New Zealand’s Most Trusted Home Builder having built almost 23,000 homes throughout NZ, with every home completed.

To discover for yourself why more New Zealanders trust GJ Gardner to build their homes year after year than any other builder visit gjgardner.co.nz.