Tax rule changes are bringing back mum-and-dad investors.

Upcoming changes to New Zealand’s property tax rules are sparking renewed interest from investors – and many are drawn to the certainty of newly built homes.

From April 1, interest deductibility will be available for both new and existing properties, reigniting investor interest across the market.

“We’ve noticed an increase in interest from investors who weren’t particularly active in the last year or so,” says Aurelie Le Gall, general manager of Fletcher Living, one of New Zealand’s largest new-build residential developers.

“There was a fair amount of wait-and-see from investors around affordability and mortgage rates. Now that prices have stabilised and interest deductibility is returning, people are definitely looking into it more seriously.”

Economists suggest house prices have now bottomed out. Combined with easing lending rates, this is drawing landlords back into the market after a period of low activity.

New builds are especially attractive to those looking to reduce maintenance risks and ensure compliance from day one. Modern homes from reputable developers such as Fletcher Living are warm and dry, and meet Healthy Homes Standards without the need for upgrades, which helps contain costs in the early years of ownership.

“An investor purchasing a second-hand home at the moment might have to spend anywhere from $2000 to $8000 retrofitting for Healthy Homes,” says Le Gall. “With a brand-new home, there’s generally no additional outlay for compliance.”

Also from April 1, the bright-line test for both new and existing properties drops to two years, making it easier for investors to manage their portfolios. Le Gall says Fletcher Living is seeing more ‘mum and dad’ investors looking to build passive income.

“We see a lot of individuals who purchased a Fletcher Living home to occupy and are now adding a smaller property to rent out. They often like it to be near their existing home so they can keep an eye on it themselves.”

Jodee Burns and her husband David are part of a growing group of everyday investors who are choosing new builds as a long-term strategy. The Auckland-based couple, who run their own engineering business and are raising two children aged 16 and 11, have now purchased two residential investment properties from Fletcher Living.

“Our main reason is obviously for retirement, so we’re building a property portfolio to create passive income for the future,” says Burns. Their first purchase, a four-bedroom terraced home in Waiata Shores, was built a few years earlier but still “felt brand new”. Their second is a standalone three-bedroom home in nearby Park Green, chosen for its appeal to families or professionals.

“We looked at every property and asked ourselves – who would want to rent this, and who might want to buy it if we needed to sell?” says Burns. “That made the new builds a no-brainer. They’re warm, they meet all the standards, and we wouldn’t even consider buying an older home with all the extra costs.”

The couple are deliberately focusing their investments in South Auckland for both the area’s affordability and growth potential.

“I think South Auckland is underrated. There’s a bit of a stigma, but it’s changing fast. There are new schools, the train line, and lots of development. It’s a smart place to invest.”

She also appreciated the process of buying through Fletcher Living. “The quality is probably one of the main reasons I chose Fletcher Living. I liked not having to deal with agents… you could throw any question at them and they’d generally have the answer. And also we like the look of their properties – it’s quality.”

The couple were also drawn to the simplicity of buying a turnkey property. “We just wanted something we didn’t have to worry about,” says Burns. “Everything was ready to go – and we know it’s built well. And being LVR exempt, it gave us more flexibility with financing.”

Le Gall says many of Fletcher Living’s properties are priced below the local median. One-bedroom apartments start around $499,000, while two- or three-bedroom terraced homes often sit between $700,000 and $900,000 in Auckland.

Fletcher Living also offers new homes in Christchurch, where prices are generally lower than in Auckland, making them an attractive option for investors seeking better affordability.

“We do find investors typically go for terraced homes of two or three bedrooms,” she says. “They strike a good balance between affordability and strong rental potential.”

Location remains a key factor. Fletcher Living’s developments are typically near shops, schools, and public transport, and often include cafes, childcare centres, and other amenities within master-planned communities.

“Having larger, well-thought-out projects means everything is laid out to foster a real sense of community,” says Le Gall. “That helps encourage longer tenancies and reduces the day-to-day risks for landlords.”

Such neighbourhoods often appeal to families and professionals and may contribute to longer occupancy periods. Friendly neighbours and shared community standards also add to the appeal.

With its history dating back to 1909, Fletcher Living offers buyers fixed pricing, well-located homes, and compliance-ready builds. As 2025’s tax changes kick in, new builds continue to offer a stable, low-hassle path to long-term wealth.

For more information visit fletcherliving.co.nz