1st-Time Property Investors Are NOW Leaning Towards New Builds


Ed McKnight

Economist, property investor and host of the Property Academy Podcast

What The Government Tax Changes Mean For Property Investors

The government changes have thrown a curveball for property investors who have existing properties in their portfolio.

From October 1st, investors will be paying more tax. Like a lot more.

That’s because you won’t be able to deduct the interest when calculating your tax bill.

Your properties will look like they’re making more money (at least in the government's eyes) ... so some investors will be facing tax bills of up to $5k more per property

But ‘New Build’ properties (bought directly from a developer) aren’t impacted by these changes ...

So the government has given New Builds a significant tax advantage.

Who New Builds investments Are a Great Good Fit For.

New Builds are for you if you want to secure a comfortable retirement… but you’re not willing to give up your weekends or activities during the week.

You would rather be with family and friends over the weekend instead of chasing tradesmen around a renovation site.

New Builds are a more passive investment than existing properties that may require renovation.

New Builds also work better when you have at least a 10 year and investment horizon…

That's because you want to be in the market for as long as possible, to allow nature capital growth to happen within the market.

If you want to take an active approach, where you’re working to renovate or develop properties, then New Builds might not be the right fit for you.

How Passive Property Investors Get Better Returns With New Builds

Passive property investors that want a hands-off strategy gravitate toward new builds.

There are a few reasons why…

✅ You don’t have to fight in the auction room to buy an investment property. New Builds are typically sold off the plans using Only fixed priced contracts are issued, leaving no room for sudden price increases. What you see is what you get.

✅ New builds require lower maintenance. A brand new home is less likely to need a roof replaced, carpet ripped up, or a faulty water cylinder repaired.

But most notably, they benefit from government regulations...

✅ Like the deposit requirement, for New builds, the LVR is 20% vs. 40% for existing. You only need a 20% deposit to buy a new build, rather than 40% for an existing property. That means your deposit can buy twice as many houses.

And the new interest-deducibility tax change…New Builds are exempt but existing properties aren’t., so some new builds will pay less than 20% of the tax that an existing property would have to pay.

Existing properties are no longer able to deduct interest off their outgoings before paying tax…

Which increases the taxable amount, resulting in a larger tax bill… But that’s only for investors who have existing properties in their portfolio.

With a portfolio full focussed on high-quality New Builds, it presents an opportunity to gradually create cash flow, build your passive income, and grow your wealth over time.

If you could have a plan in place that got you closer to your goals, what would that mean for your future?

We find Kiwis Quality New Builds To Invest In.

When you walk through the door at Opes, everything is done for you.


✅ We will find the right New Builds for your portfolio

✅ Complete research on these New Builds to make sure that they are a fit

✅ Negotiate with the developer to get you a fair price in the current market

✅ Introduce you to lawyers, accountants, and mortgage brokers that can help you complete the purchase of an investment property

✅ Manage the build process for you to make sure that the build of your new property is on track.

You don’t have to do the research… negotiate with the developers…

Or take the chance that the property you invest in turns out not to work as a suitable investment.

You’ll have the ability to access the top investment properties throughout the country.

So you can find a suitable investment that aligns with your goals.

Over the last 8 years, we’ve helped over 850 kiwis build a portfolio of investment properties.

That’s 850 regular kiwis who are now successful property investors.

So, are you ready to become a 1st-time property investor? And not let the government tax changes stop you?

FAQ Section

“What is considered a New Build?”

The exact definition has not been set yet by the government, but we expect it to include…

Any property brought directly from a developer that also received its code of compliance no more than 12 months before you purchase. The reason for this is that it’s similar to the way other government policies are structured, like the First Home Grant.

The government will spend the next 6 months coming to a final policy that will start as of October 1st. Until then we’ll be keeping our eyes peeled to precisely what the definition of a New Build will be.

“I’m not sure if I’m in the right financial place to invest.. is this still right for me?

You probably are in the right position to invest. But you just don’t know it yet. Or you may just need a quick structural change so that the bank will approve the finance. This is a big part of what we do. But if you’re not in the right position to invest, we’ll give you basic advice on what you’ll need to do to get in the right position during the initial free portfolio planning session.

“What’s the difference between going directly to a developer vs using Opes?”

There are two reasons.

Here at Opes we have previously worked with about 30 developers around the country.

That means that you can talk to one property adviser and have access to properties from a number of developers, rather than approaching 30 different developers directly.

Not all New Builds make good investments, so we only select the ones that meet our 23 step pre-investment checklist.

When you select properties with an Opes Property Partner, you can have the confidence that you’re looking at a number of properties, from a number of developers, from around the country.

The next reason investors like working with Opes is the level of detail you get when analysing each property.

You receive a 15-year cashflow forecast for each property, along with an estimate of the property’s return.

Developers aren’t set up to give this level of property-specific financial advice.

With a high stake purchase like a property, having an experienced professional guide you through the process will save you headaches and the drama of doing everything independently.

We’re here to coach you through the process and make a seamless transaction. Any Question? Call your property partner and get an answer immediately.

This is what will happen after you complete the form...

Firstly Joy from our Customer Success team will contact you and get you booked in for a Portfolio Planning Session with one of the Property Partners.

At the first session, you’ll learn a bit about each other and discuss why you want to invest and what you hope to get from it in the future.

You’ll have your numbers run and see what you need to do to reach the goals you discussed earlier.

Once you’ve discussed where you want to go, the Property Partner will present various investment properties that they think are the best option for you.

After you have gone over the properties and decided what ones will be the best investments for you, you’ll get a complete portfolio plan that ensures you are on track to hitting your goals in the future.

In just 1 month you could be sitting there with your very own investment property…

What would that mean for your future?


Ed McKnight

Ed McKnight is the host of the Property Academy Podcast – NZ's #1 business podcast. He is an economist, having studied at the University of Auckland and the University of Waikato. He's a frequent writer for Informed Investor Magazine and has contributed to NewsHub, Stuff, OneRoof and Property Investor Magazine.