Top 5 Investment Criteria for New Build Properties
New build properties offer strong potential - but not all growth is created equal. At KEY2 Invest, we focus on helping investors navigate the key drivers of value, location, and timing to make confident, informed investment decisions.
1. Invest in New Builds
New build properties offer numerous advantages for investors:
Modern Appeal: Attract quality tenants seeking contemporary living spaces.
Low Maintenance: Brand-new construction minimises upkeep costs.
Compliance: All properties meet current building codes and Healthy Homes standards.
Investment Ready: Properties are designed with investors in mind, ensuring optimal rental returns.
Additionally, purchasing off-the-plan allows investors more time to arrange financing and plan for settlement.
2. Choose High-Growth Locations
Location is a critical factor in property investment success. Target areas with:
Housing Shortages: Indicates strong demand and potential for capital growth.
Infrastructure Development: Upcoming projects like roads, schools, and public transport enhance property value.
Economic Growth: Regions with job creation and population growth offer robust rental markets.
Our team at KEY2 Invest conducts thorough market research to identify such high-potential areas.
3. Aim for a Minimum Gross Yield of 4%
Gross yield is a measure of the annual rental income as a percentage of the property's purchase price. A minimum gross yield of 4% helps ensure:
Positive Cash Flow: Reduces the need for additional financial input to cover expenses.
Investment Viability: Indicates a healthy return on investment.
Our property listings include detailed yield calculations to assist in your decision-making process.
4. Partner with Reputable Builders
The quality of construction directly impacts tenant satisfaction and long-term maintenance costs. We recommend:
Builder Vetting: Ensure builders have a proven track record of delivering quality projects.
Warranty and Guarantees: Look for builders offering comprehensive warranties for added peace of mind.
At KEY2 Invest, we collaborate with trusted builders who meet our stringent quality standards.
5. Ensure the Property is Rent-Ready
A rent-ready property allows for immediate tenancy post-settlement. Key features include:
Complete Landscaping: Enhances curb appeal and tenant satisfaction.
Essential Appliances: Inclusion of items like heat pumps and window treatments.
Healthy Homes Certification: Compliance with New Zealand's rental property standards.
Some properties may also offer rental guarantees, providing additional security for your investment.
Ready to explore new build investment opportunities?
Contact us today to discuss how we can assist you in achieving your investment goals.