What is the best property investment strategy in New Zealand?

For most beginners, Buy and Hold is a good place to start. You buy a property, rent it out, and keep it for the long term.But if you have renovation experience and want to make money more quickly, Buy and Flip could also be an option.

What is the buy and hold property strategy in NZ?

Buy and Hold means buying a property and keeping it for years, often 10-20 years or more. You earn rent from tenants and the property can increase in value over time.

Is buy and hold better than buy and flip in NZ?

It depends on what you want. Buy and Hold is generally better suited to people who want to build wealth over time without spending too much time managing their investment.Buy and Flip can make money faster, but it usually takes more work and comes with more risk.

Can I do property investment alongside my full-time job in NZ?

Yes. Many Buy and Hold investors manage their rental properties alongside their normal jobs.Once you’ve found a tenant, you might only spend a few hours a month managing the property, especially if you use a property manager.

What is the BRRRR strategy in NZ?

BRRRR stands for Buy, Renovate, Rent, Refinance and Repeat. You buy a property, renovate it to increase its value, and rent it out. You may then be able to borrow more against the property to help buy another one.

What are the pros and cons of flipping houses in NZ?

The biggest benefit of flipping is that you can make money relatively quickly.But renovations can cost more than expected, house prices can fall, and selling costs can eat into your profit.You’ll also generally pay income tax on the profit.

Is buy and flip risky in NZ?

Yes. Buy and Flip is generally riskier than Buy and Hold.That’s because you’re relying on being able to renovate and sell a property for more than you’ve spent.If renovations go over budget or house prices fall, you could make less money than expected or even lose money.

What is the 2% rule in property investment?

The 2% rule says a rental property should earn 2% of its purchase price in rent each month. But that’s unrealistic for most New Zealand properties, so it’s better to look at the rent you could actually earn and how much the property costs to own.

Property Investment

8 min read2 Nov 2026

Which property investment strategy should I use?

Thinking about investing in property? You're probably wondering if you should buy and hold or buy and flip. This article will help you make the right decision.

Author: Andrew Nicol

Founder, 20+ Years' Experience Investing In Property, Author & Host

Book a session with Andrew

Reviewed by: Ed McKnight

Resident Economist, with a GradDipEcon and over five years at Opes Partners, is a trusted contributor to NZ Property Investor, Informed Investor, Stuff, Business Desk, and OneRoof.

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There are two main ways to make money from property in New Zealand.

You can buy a property and keep it for years (Buy and Hold)
You can buy one, do it up, and sell it for a profit (Buy and Flip)

Buy and Hold is the more common strategy, but Buy and Flip is probably the one that gets people most excited.

Both can make you money, but they work in very different ways.

In this article we’ll compare the two strategies, look at the pros and cons, and help you decide which one is right for you.

Just keep in mind that here at Opes Partners we help people invest using a Buy and Hold strategy. That does mean there’s an incentive for us to be biased and say that’s the best strategy.

We’re not going to do that. Instead, this is going to be an unbiased comparison based on facts. That way you can make the right decision for your property journey.

Top takeaway

Buy and Hold is generally easier to manage and suits investors who want to build wealth over time. Buy and Flip can make money faster, but it takes more work, skills and risk. Neither is automatically better. The right strategy depends on your time, budget and experience.

Buy and Hold vs Buy and Flip: What is the difference?

The biggest difference between the two main property investment strategies in New Zealand is how long you own the property.

Buy and Hold is about building wealth over time.
Buy and Flip is about making money more quickly.

Here’s how they compare:

Factor	Buy and Hold	Buy and Flip
How long you own it	Usually 10-20+ years	Usually a few months
How you make money	Rent and rising property values	Profit when you sell
Time needed	Often a few hours a month once rented	Can be like a full-time job
Risk	Generally lower	Generally higher
Money needed to get started	Often less	Often more
Tax	Sale profits can be taxed under the bright-line test or other rules	Sale profits are taxed
Skills needed	Less experience needed	More skills and experience needed

What are the different ways to use the Buy and Hold strategy?

There are two common ways to Buy and Hold.

Some investors buy New Builds; others renovate older houses or look for properties they can buy for less than they’re worth.

Here’s how each strategy works.

#1 Build and Hold Strategy: Investing in New Builds

One of the simplest ways to invest is using the Build and Hold strategy.

You buy a New Build, rent it out, and wait for it to increase in value.

Because the property is new you probably won’t need to spend as much on repairs at first.

Once you’ve found a tenant, a Build and Hold property might only take a few hours a month to manage, especially if you use a property manager.

Pros	Cons
Only need a 20% deposit, rather than 30% for an existing property	Can take years to build wealth
Usually fewer repairs	Rent may not cover all your costs
Can invest in another city without overseeing renovations	Less opportunity to increase the property’s value yourself

This is the main strategy we help investors use at Opes Partners.

#2 BRRRR: Buy, Renovate, Rent, Refinance and Repeat

This is where you buy an older property, renovate it, and rent it out.

If the property goes up in value, the bank may let you borrow more money to help buy another rental.

For example:

What happens	Amount
Buy a property	$550,000
Spend on renovations	$50,000
Property is now worth	$650,000
Extra value created	$50,000

That’s $50,000 in extra value before other costs, which you may be able to borrow against if the bank agrees.

Pros	Cons
Can increase the property’s value quickly	Need money for renovations
May be able to charge more rent	Older properties need a bigger deposit to buy compared with new houses
Can use a small part of the extra value to help buy another property	Renovations can go over time and budget

BRRRR suits investors who don’t mind putting in extra work on renovations.

More from Opes:

What are the different ways to use the Buy and Flip strategy?

There are two common ways to Buy and Flip.

Some investors renovate houses before selling them. Others look for properties they can buy and sell quickly without doing any work.

Here’s how each strategy works.

#1 Flipping houses

Flipping is where you buy a rundown house, renovate it, and sell it for a profit.

For example, you might replace an old kitchen, paint the walls and put in new carpet.

The goal is to increase the property’s value by more than you’ve spent on renovations and other costs.

Buy and Flip can be like running a full-time business. That’s because you need to find properties, organise renovations, manage builders and sell the finished homes.

Pros	Cons
Can make money quickly	Renovations can go over time and budget
Can increase the property’s value yourself	Need money to buy and renovate
Get to see the results of your work	Need to know which renovations add value
	Takes a lot of time and effort

Flipping tends to suit people with building or renovation experience who know how to keep costs down.

Remember, it’s not just renovations you need to pay for. There are also real estate agent fees, lawyer’s fees, borrowing costs and tax.

As of October 2026, the bright-line test is 2 years for residential properties sold on or after 1 July 2024, no matter when they were bought.

But Opes’ economist Ed McKnight says the shorter bright-line test doesn’t make much difference to people who flip houses.

There are 3 reasons why.

First, most flippers want to buy, renovate and sell within 3 to 12 months. So they’re often still caught by the 2-year rule.

Second, there’s another tax rule called the intention test.

If you buy a house planning to do it up and sell it for a profit, you’ll generally have to pay tax on that profit even if you keep the house for more than 2 years.

And third, some people who regularly buy and sell properties can be caught by special tax rules called tainting. That can mean you need to hold a property for more than 10 years before you can sell it without paying tax on your capital gains.

So, even though the bright-line test is shorter, that doesn’t mean flipping houses is tax-free after 2 years.

#2 Trading houses

This is where you find a property at a good price and sell it to another buyer for more, without renovating it.

For example:

What happens	Amount
Agree to buy a property	$450,000
Arrange to sell it for	$460,000
Difference before costs and tax	$10,000

You've made a $10,000 difference between the buying and selling prices without doing renovations.

Some experienced investors even arrange to buy and sell a property on the same day.

But this can be complicated, so you’ll need a lawyer to help you get it right.

Pros	Cons
Don’t need to renovate	Good deals are hard to find
Can make money quickly	Need to understand property values and be active in the market
Can focus on finding good deals	Could lose money if you can’t find a buyer

Trading tends to suit experienced investors who know how to spot a good deal and have contacts in the property industry.

Which investment strategy should I choose?

For most Kiwis, Buy and Flip sounds the most appealing.

After all, who wouldn’t want to buy a rundown house, do it up, and sell it a few months later for a tidy profit?

We’ve all seen the headlines about people making hundreds of thousands of dollars flipping houses.

But there’s a lot more work involved than you might think.

You need to find the right property, know which renovations will add value, and keep a close eye on costs.

Buy and Hold, on the other hand, is generally easier to manage.

You don’t need to know how to renovate a house, and you can usually manage your investment alongside your normal job.

The trade-off? You’ll generally need to wait longer to make money.

Here’s how to work out which strategy might suit you.

Buy and Hold might suit you if ...	Buy and Flip might suit you if ...
You want to build wealth over 10–20 years	You want to make money more quickly
You have a full-time job and limited spare time	You have plenty of time to manage renovations
You don’t have renovation experience	You know how to renovate or manage builders
You prefer a more hands-off investment	You love the smell of paint and getting involved and doing the work
You’re comfortable waiting for your property to grow in value	You’re happy to take on more risk for the chance of a faster profit

Neither strategy is necessarily better than the other. It comes down to how much time you have, what you know about property, and how quickly you want to make money.

So, which strategy should you choose?

There isn’t one strategy that’s right for everyone.

If you want to build wealth over time without spending your weekends renovating, Buy and Hold may suit you.

If you want to make money more quickly and don’t mind the extra work, Buy and Flip could be an option.

Some investors do both: they flip houses to make money, then use that money to buy rentals.

The best strategy isn’t the one that makes the most money on paper. It’s the one that works for your time, skills and budget.

If you’re just getting started, read our Epic Guide to Property Investment to learn more.

Key Takeaways

Buy and Hold means buying a property, renting it out, and keeping it for years.
Buy and Flip means buying a property, doing it up, and selling it for a profit.
Buy and Hold generally takes less time and has less risk.
Buy and Flip can make money faster, but renovations and selling costs can eat into your profit.
Profits from flipping are generally taxed as income, even if you hold the property for more than 2 years.
The right strategy depends on your money, your skills, and how much time you have.

Andrew Nicol

Founder, 20+ Years' Experience Investing In Property, Author & Host

Andrew Nicol, Managing Director at Opes Partners, is a seasoned financial adviser and property investment expert with 20+ years of experience. With 40 investment properties, he hosts the Property Academy Podcast, co-authored 'Wealth Plan' with Ed Mcknight, and has helped 1,894 Kiwis achieve financial security through property investment.

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Ok, now for the legal bit:

This article is for your general information. It’s not financial advice. See here for details about our Financial Advice Provider Disclosure. So Opes isn’t telling you what to do with your own money.

We’ve made every effort to make sure the information is accurate. But we occasionally get the odd fact wrong. Make sure you do your own research or talk to a financial adviser before making any investment decisions.

You might like to use us or another financial adviser

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