A GOLDEN OPPORTUNITY
New property investment rules, and current market conditions, mean building a new rental home in Christchurch is a smart option for those seeking a great return.
Golden Homes expects floor plans like the pictured beautiful three-bedroom, two-bathroom new build in Lanner Drive, Rolleston, to become increasingly popular with investors who want to avoid the Government’s extension to the bright-line test and potential timber shortages.
Anyone building a new rental only has to hang onto the property for five years (not 10) before having to pay income tax on any profit. And all Golden Homes are built with ZOG steel framing, which is in plentiful supply and is Healthy Homes approved.
“This home’s a great example of what you could build in Canterbury right now and get a good rental return,” says Golden Homes franchise owner Dean McGuigan. “It’s a great investment proposition. It’s a functional size [168m²], and it’s fitted out with quality fittings and materials to stand the test of time. A lot of investors and tenants want low maintenance and easy living – neither party want to have items fixed, as this cost is just going to eat into a landlord’s returns.”
McGuigan says a new home such as this one can be built for $600,000 to $650,000 in Canterbury right now (including land). “In Auckland, building the same home will cost you a million bucks, and in Wellington, it might be $850,000, and in Nelson, it’s probably $750,000, but you’re still only going to attract a similar rental price per week.
“Canterbury is not going to run out of land anytime soon. That’s why Christchurch is well-targeted in terms of being undervalued. Now is a good time to build before those values go up.”
Investors from around the country are already zeroing in on the mainland as the ideal place to build new homes and protect their property returns.
“Those people who were possibly looking at buying existing homes as an investment before are now making the shift to new home builds because of the extension to the bright-line test, the lack of maintenance, and because they’ll be Healthy Home approved. It just makes financial sense, and they’re adding quality homes like this one to New Zealand’s housing stock.”