WHY INVEST IN A NEW BUILD IN 2025

With the cash rate down to 2.5% and full interest deductibility back, it’s prime time for investors to think smart. Here’s why more Kiwis are backing new builds this year.

Why Kiwis Invest in a New Build in 2025

Low rates. Less stress. More summer.

When the Reserve Bank dropped the cash rate to 2.5%, it didn’t just make borrowing cheaper - it gave investors something they haven’t felt in a while: confidence.

But while everyone’s rushing back into the market, there’s a smarter play than duking it out at auction for a 1970s do-up with a “quirky” pink bathroom.

New builds are where it’s at - steady, simple, and built to last.

Here’s why 👇

1. Lower rates, fewer dramas

At 2.5%, the cost of borrowing’s finally looking friendly again. But that also means the scramble’s on.

Old homes bring old problems. Leaks, wiring, surprise bills - and tenants calling you mid-BBQ because the loo’s blocked again.

New builds? You get a fixed price, a clean start, and none of the auction circus.

While everyone else is sweating through open homes, you’re locking in a warm, dry, fully compliant property - without the drama.

2. Predictable performance

Investing shouldn’t feel like rolling the dice.

With a new build:

• Your price is locked before you start.

• Warranties have your back if anything goes sideways.

• You’re not budgeting for 12 “small” fixes that turn into five-figure headaches.

You know what you’re in for - and that’s worth its weight in rent cheques.

3. Tenants love new (and they pay for it)

Good tenants want good homes.

They’ll pay a little more for a place that’s warm, dry, and doesn’t grow mushrooms in the bathroom.

Healthy Homes standards? Already sorted.

Modern layouts? Tenants love them.

You? Fewer vacancy gaps, less maintenance, more reliable income.

4. The maths makes sense

Between cheaper money and interest deductibility being fully reinstated, the numbers are starting to look tidy.

Sure, you can’t depreciate the building itself - but you can claim on chattels and fittings, and you’re not sinking money into constant repairs.

Less maintenance, fewer surprises, more consistent returns. Simple.

5. Built for the long haul

A well-designed new build holds value better, appeals to more buyers, and costs less to run.

You can hold it, refinance it, or sell it later without wondering what’s hiding behind the gib.

That’s not just smart investing - that’s sleeping easy.

Timing matters - but confidence wins

Yes, rates are lower right now. But it’s not about timing the market —-it’s about acting while you’ve still got options.

New builds give you control, certainty, and an asset that works for you - not against you.

So while others are still waiting for the “perfect moment,” you’ll already be collecting rent (and enjoying your weekends).

FAQs: Investing in a New Build

Can you still buy a new build with a 10% deposit?

In many cases, yep. Some lenders offer lower-deposit options for new builds because they’re seen as lower risk — no hidden damage, no compliance issues, and often a clear fixed-price contract to show the bank.

Do banks prefer new builds?

Generally, yes. Banks love certainty. A new build means clear valuations, new materials, and lower maintenance risk - which makes them easier to lend against.

What kind of yields are investors seeing in 2025? 

It varies by region, but the sweet spot tends to sit between 3.7% - 5.3% gross for well-located new builds - with the bonus of fewer expenses eating into that return.

Can I still claim depreciation?

Not on the building itself, but yes on chattels and fittings like carpets, curtains, appliances, and heat pumps. Your accountant can help itemise what’s eligible - but it’s a nice little top-up to the long-term gains.

How long does a new build investment take from go-to-whoa?

Most turnkey or house-and-land builds take 9–12 months from contract to completion. You’ll pay your deposit upfront, then either progress payments or the balance at handover depending on the build type.

Is now actually a good time to invest?

With the cash rate at 2.5%, full interest deductibility restored, and solid rental demand nationwide - it’s one of the better windows we’ve seen in years. Wait too long and that breathing room will tighten fast.