Do New Builds still get special tax treatment?

No. New Builds used to have tax advantages under interest deductibility and the Brightline test. However, those no longer exist.

What counts as a New Build in NZ?

For lending, a New Build is either off the plans, or less than 6 months old from the date the council signs it off as complete. And importantly, your sale and purchase agreement must be with the original developer.

How much deposit do I need for a New Build investment property?

Usually, investors need a 20% deposit for a New Build compared with 30% for an existing investment property.

What is the difference between turnkey and progressive payments?

With a turnkey purchase you usually pay a deposit upfront and the rest at settlement once the property is finished.

New Builds

10 min read8 Jul 2026

New Builds - The ultimate guide for every property investor

Explore the essentials of investing in new builds. Our guide covers key strategies, benefits, and tips to navigate the market and maximise your investment.

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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A New Build is a property bought off-the-plans or one that is less than 6 months old from the date the council signs it off as complete.

They’re popular with investors and first home buyers who want something newer and easier to maintain.

They can also be easier to get a mortgage for because they don’t have to follow all the Reserve Bank’s rules.

The big difference? You’re not buying someone else’s old problems … you’re buying a recently finished home.

In this article you’ll learn everything you need to know about New Builds.

That includes what a New Build is, how the financial incentives work, and whether a New Build could be the right investment for you.

Top takeaway:

Don’t just ask, “Is this a New Build?” Ask, “What type of New Build am I actually buying?”

What decisions do you need to make when buying a New Build?

Buying a New Build sounds simple, but there are a few decisions you need to make before you start looking at properties.

Decision	What you're choosing between	Why it matters
Stage of build	Off-the-plans vs completed	Affects timing, risk and whether you can look at the property before you buy
Location type	Greenfields vs brownfields	Affects tenant demand, infrastructure and the type of property available
Contract structure	Turnkey vs progressive payments	Affects risk, cashflow, and when you pay
Property type	Townhouse, standalone house, apartment, dual-key	Affects yield, capital growth and tenant demand

Off-the-plans vs completed New Builds

Some New Builds are sold before they are finished. Others are already completed and ready to move into or rent out.

Type	When you buy it	Main trade-off
Off-the-plans	Before completion	More choice, but more waiting and less certainty
Completed	After construction	More certainty, but less time and choice

If you buy off-the-plans you sign the contract before the property is finished.

That usually gives you more choice within the development. After all, developers often need to ‘pre-sell’ properties off-the-plans before the bank will give them the money to build.

So, if you purchase before the properties are built you get first dibs on properties within the development.

If you wait until those properties are completed, then you only get the leftovers that haven’t been bought. Typically, developers will try to charge a higher price for those that are completed.

But the downside of buying off-the-plans is that you can’t walk through the finished home before you buy; you need to wait for construction to be completed. This can take 12 to 18 months.

If you buy a completed New Build, the property is already built or almost finished.

That means you can see exactly what you are buying.

Greenfields vs brownfields

New Builds are often classified by where they’re built. They’re called: greenfields and brownfields.

Type	What it means	Common examples
Greenfields	New housing built on land that was previously undeveloped	New subdivisions, standalone houses, house-and-land packages
Brownfields/infill	Existing homes are removed and replaced with more housing	Townhouses, duplexes, apartments

Greenfield developments are often on the edge of a town or city, so they are further away from the central city.

That can mean newer streets, newer homes and more space. But the area may still be growing, so shops, transport and other infrastructure may take time to develop.

Brownfield developments are usually in established suburbs.

That can mean existing tenant demand, existing transport links, schools, shops and amenities. But the properties are often smaller and denser because land is more expensive.

Neither is automatically better.

The right choice depends on the area, tenant demand and your strategy.

Turnkey vs progressive payments

Then there is the difference between the type of contract you sign. You might either sign a turnkey contract or a progressive payments contract.

These are very different, and it’s critical you understand the difference before you buy a New Build:

Purchase type	What it means	Risk level
Turnkey	You agree on the price upfront and pay most of the money at settlement	Lower
Progressive payments	You buy the land, then pay the builder in stages as the property is built	Higher

A turnkey purchase is like buying a finished product.

You agree to buy the property for a set price. You usually pay a deposit when the contract goes unconditional, then pay the rest when the property is finished.

If construction takes longer or costs more than expected, that is usually the developer’s problem, not yours.

A progressive payment build is different.

You usually buy the land first, often from the developer. Then you pay the builder in stages as the home is built.

That means you may start paying interest on the land before there’s a house, tenant or rent.

Think of it like this: turnkey properties are like buying a finished product; a progressive payments build is like hiring the builder to perform a service.

So if the build takes longer, costs more, or unexpected issues come up, that’s your issue.

Top takeaway:

Progressive payments can offer more control, but they also come with more risk. That’s why many investors decide to invest in turnkey New Builds.

Townhouse vs house vs apartments vs dual-key

Not all New Builds are the same. You might decide to invest in a townhouse, house, apartment, or even a dual-key property.

Here are the main property types and prices we see investors choose at Opes Partners:

New Build type	Often used for	Typical price range	Target gross yield	Common locations
Townhouse	Growth	$520,000 – $1 million	4% – 4.8%	Auckland, Christchurch, Hamilton, Dunedin, Queenstown
Standalone house	Growth	$670,000 – $900,000	4.25% – 4.5%	Canterbury, Kaiapoi, Rolleston
Dual-key townhouse or apartment	Yield	$725,000 – $1 million	6%+	Auckland, Queenstown, Wellington

Just remember that here at Opes Partners we help Kiwis invest in New Builds.

Through that experience we've found that the right New Build for an investor depends on their:

budget,
strategy, and
what the local market wants.

For example, a 2-bedroom townhouse may work well in a central suburb where tenants want to live close to jobs, transport and amenities.

But that same property may not be as popular in a place like Rolleston or Pokeno, where families prefer standalone houses with more space.

On the other hand, a standalone house in Central Auckland may be too expensive to work well as an investment property.

That’s why the property type needs to match the location.

How much deposit do I need for a New Build?

Most investors need a 20% deposit to buy a New Build investment property. This is based on the RBNZ’s LVR rules (as at July 2026).

That means if the property costs $600,000, you’ll usually need $120,000 in deposit or equity.

This is one of the main reasons New Builds are popular with investors.

By comparison, existing investment properties usually require a 30% deposit.

That’s because New Builds don’t need to follow the Reserve Bank’s loan-to-value ratio restrictions.

So, for the same $600,000 property, you may need more money upfront if it’s an existing home rather than a New Build.

Property type	Typical investor deposit	Example on a $600,000 property
New Build investment property	20%	$120,000
Existing investment property	30%	$180,000

Top takeaway:

New Builds can be easier for investors to buy. They usually require a smaller deposit than existing investment properties.

What’s the definition of a New Build?

A property can be newly built, but not always treated as a “New Build” by the bank.

This is important because it can impact how much deposit you need.

The definition of what counts as a New Build is based on when the code compliance certificate was issued.

CCC status	Investor deposit	Bank treatment
Not yet issued	20%	New Build
Less than 6 months old	20%	New Build
More than 6 months old	30%	Existing property

The key date is usually the Code Compliance Certificate, also called the CCC.

That’s the council sign-off that confirms the property has been completed.

However, there is another important difference. To count as a New Build your sale and purchase agreement must be with the developer.

So, let’s say that Investor A buys a New Build off-the-plans from a developer. The bank requires Investor A to have a 20% deposit.

Three months later Investor A sells that property to Investor B.

The code compliance certificate is still less than six months old.

Because Investor B’s contract is with Invest A, rather than the developer, the property doesn’t count as a New Build in the bank’s eyes.

So Investor B must have a 30% deposit to get the mortgage approved.

When do you pay the deposit?

This is where New Builds can feel confusing because there are two types of deposit:

The deposit you pay the developer when you sign a contract
The deposit you must have for the bank to lend you the money.

You may need a 20% deposit overall for the bank to lend you the money, although you don’t usually pay the full 20% straight away.

If you buy off the plans you’ll often pay a smaller deposit when you sign the contract.

This is usually around 10% of the purchase price.

The rest is paid at settlement. For example, on a $600,000 New Build:

Stage

What happens

Example amount on a $600k property

When you sign the contract

You pay a deposit to secure the property

$60,000

When the property settles

The bank provides the loan and the rest of your deposit/equity is used

$60,000 from your deposit

$480,000 from the bank / mortgage

In most cases the deposit you give to the developer is held in a solicitor’s trust account until settlement.

That means the developer does not usually receive the money immediately.

Put simply, the bank may want to see that you have a 20% deposit overall, but the developer may only ask for 10% upfront when you sign.

Always check the exact deposit requirements before signing. The deposit you need can vary based on the developer, bank and contract.

Are banks more likely to lend on New Builds? A mortgage adviser's view

Peter Norris, Managing Director at Opes Mortgages (BNZ Mortgage Adviser of the Year 2018, $1.2 billion-plus in lending facilitated), says:

“Buying a New Build can make it easier to get a mortgage when it comes to the amount of deposit you need and the debt-to-income ratios.

“However, the banks will also check whether you can afford the mortgage, and under that test the banks don’t discriminate.

“A bank assesses your application in pretty much the same way.

“They still look at your income, expenses, debts, and overall ability to pay off the loan. It doesn’t matter whether you’re buying a New Build or an existing property.

“The main exception is when you're building a home yourself through a house-and-land package with progress payments.

“In these cases getting finance can be more difficult because banks know construction costs can increase during the build.

“To protect themselves they may be more conservative about how much they’ll lend.

“So some borrowers who could get a mortgage for a turnkey New Build may find it harder to borrow the same amount when building from scratch.”

Are New Builds good investment properties?

New Builds can be good investment properties, but only if they suit your strategy, budget and goals.

They are often a good fit for investors who want something newer, lower maintenance, and easier to own.

But they are usually a poorer fit for people who want to renovate, manufacture equity, or chase very high yields from day one.

Pros	Cons
Often require a smaller deposit than existing investment properties	Less opportunity to add value through renovation
Usually lower maintenance in the early years	You may need to wait for the property to be built
Modern, warm, and attractive to tenants	You may not be able to walk through the finished property before buying
Easier to budget for repairs and upkeep	Larger developments can create competition for tenants at completion
Often suit passive Buy-and-Hold investors	You rely on the developer completing the project as expected

However, even if New Builds suit your strategy, that does not mean every New Build is a good investment.

A property can be well-built and still not stack up financially.

For example, a developer might use expensive finishes or premium features that make the home feel nicer, but tenants may not pay enough extra rent to justify the higher purchase price.

How do I buy a New Build property?

You can buy a New Build through Trade Me or Realestate.co.nz, a real estate agent, directly from a developer, or through a property investment company.

The right option depends on how much help you want, how confident you are assessing properties, and whether you already know what you’re looking for.

Option	Better for
Property investment company	investors who want advice choosing and assessing a property
Websites like Trade Me or Realestate.co.nz	Buyers who want to search and compare options themselves
Real estate agent	Buyers who already know what they want
Developer direct	Buyers who want a specific project and understand the numbers

If you decide you want to tackle Trade Me for your property, you are doing the legwork yourself, which is great for buyers who want to compare lots of options and feel confident judging the property, the price, and the area on their own.

But if you buy through a real estate agent or directly from a developer, you are usually choosing from a specific project or listing.

Buying through a property investment company is different. The process usually starts with your goals, budget and strategy. Then the adviser helps identify properties that may fit.

This is what we do at Opes Partners. But remember, you don’t have to use us. There are loads of companies like us for you to choose from.

It can suit investors who want a more guided process, especially if they are buying their first investment property.

There is no single “right” way to buy. The best option comes down to how much support you want and how confident you are assessing a New Build on your own.

When does a New Build actually make sense? A financial adviser’s view

Andrew Nicol, Founder at Opes Partners. Host of the Property Academy Podcast.

“A New Build makes sense when you want a passive property that is easy to own, easy to tenant, and doesn’t need work straight away.

“It usually makes less sense if you want to renovate, manufacture equity, or chase a bargain below market value.

“In my own portfolio, New Builds have worked best when the property type matched the location and the numbers stacked up from day one.”

Key takeaways

A New Build is a property bought off the plans, or one that is less than 6 months old from the date the council signs it off as complete.
Most investors will usually need a 20% deposit for a New Build; existing properties need at least a 30% deposit.
There are 2 main ways to buy a New Build: turnkey or progressive payments. Turnkey usually suits more passive investors; progressive payments come with more control but also more risk.
Investors are not just choosing between new and old. They are also choosing between townhouses, houses, and dual-key properties. Each suits a different strategy.
New Builds often suit investors who want a passive, lower-maintenance property. They are usually less suited to people who want to renovate, add value quickly, or manufacture equity.
A New Build can still be a poor investment if the location, property type, price and rent do not stack up.
The best New Build is not just “new” – it’s the one that fits your strategy and works financially.

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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