Investment corner

January 1, 2025

If you’re looking to purchase an investment property do keep in mind the new Reserve Bank requirement which now requires a 40% deposit for investment property purchases. There is however an exemption for New Build Homes which we are seeing savvy investors flock towards.

Purchasing a new build rental (whether off plan, turnkey, progressive drawdown build) has a number of distinct advantages as follows:

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• Heavily Discounted New Build Packages available providing substantial interest rates discounts (currently sitting as low as 2.03% rates on new build homes)

• Interest Cost deductibility on rents received*

• No/Low maintenance – everything is new and works

• Compliance with Healthy Home requirements

• LVR exemption – lower deposit requirements

If you own your own home with a reasonable level of equity, it is still possible to purchase an Investment Property without deposit (100% funding) in a cashflow positive way. This can accelerate the repayment of your existing mortgage. If you would like us to run the numbers and let you know what is possible (including trying our new Advice Knight Investment Property Cash Flow Calculator), do get in touch.

*See IRD changes to deductibility of interest on existing homes here: IR FACTSHEET Interest deductions.pdf