Yes, but… like any investment, success depends on timing, property selection, and long-term strategy.

Rental property in New Zealand remains a sound investment - particularly for those who take a considered, region-specific approach.

While the days of fast capital gains may have cooled, smart investors are still finding strong opportunities, especially in regional centres where demand remains high and well-managed properties deliver solid rental returns. At Property Brokers, we work with new and seasoned investors to assess opportunities, ensure compliance, and maximise long-term returns.

Book a free rental appraisal or strategy session

Why people still invest in property

Kiwis have long valued bricks and mortar - and that hasn’t changed. In 2025, despite tighter regulations and higher interest rates, investment property continues to attract buyers for three core reasons:

• Capital growth over time, especially in growth regions like Manawatū and Hawke’s Bay
• Rental income that supports cashflow and supplements long-term wealth building
• Leverage, allowing investors to borrow against a tangible asset

For many, property feels more secure than shares - especially when managed well. But these benefits depend on selecting the right property and keeping it tenanted, compliant, and well-maintained.

What makes a rental property a good investment

Not all properties are created equal. When assessing a potential rental, experienced investors look beyond the purchase price.

Here’s what to consider:

• Yield – How much income does the property generate relative to its value? Use our rental calculator
• Growth potential – Are prices rising steadily in the region?
• Tenant demand – Is there a healthy pool of renters?
• Ability to hold – Can you manage costs if rates rise or the property needs maintenance?

⚠️ Yield alone doesn’t tell the full story. A low-vacancy, easy-to-maintain home in a popular school zone may outperform a higher-yield property in a less desirable area.

Property Brokers’ regional offices - from Ashburton to Gisborne - see consistent demand for well-located homes near amenities and employment hubs. These remain attractive for long-term investors.

Market conditions in 2025: should you buy now?

Timing the market isn’t easy - but buying smart in the current climate can set you up for success.

In May 2025:

• Interest rates remain high, but are expected to ease late this year or early next
• Prices are steady, with some regions seeing modest gains
• Supply remains tight in areas like Palmerston North and Nelson

If you already hold equity or are buying with a long-term view, there are real opportunities in today’s market. We’re seeing strong activity in provincial regions where rental demand is high and prices are more affordable than the main centres.

Read: 8 tips for building wealth through property investment

Common property investment strategies (and who they suit)

There’s no one-size-fits-all. Choose a strategy that matches your goals, capital, and time.

• Buy-and-hold – Best for long-term wealth. Ideal for first-time investors or those wanting passive income.
• Renovate and refinance – Adds value fast but requires time, skill, and cash reserves.
• Growth vs. yield focus – Some investors prefer higher rent returns; others bet on long-term price appreciation.
• Commercial investment – Viable for experienced investors seeking stable, long-term tenants and strong yields.

Find the best strategy for your situation

How property managers help investors succeed

A good property manager does more than collect rent. At Property Brokers, we help investors:

• Stay Healthy Homes compliant
• Attract and retain quality tenants
• Maximise income through market rent reviews
• Reduce vacancy with proactive leasing
• Scale efficiently across multiple properties

With over 88 branches and 8,000+ properties under management, we’re big enough to know what works—and local enough to get it right.

Explore our management services | Read our service guarantees

Risks, caveats, and long-term thinking around property investment

Like all investments, rental property carries risk.

Be aware of:

• Rising interest rates
• Unexpected maintenance and repairs
• Periods of vacancy
• Regulatory or tax changes

That’s why we always encourage planning for buffers and thinking long-term. Property works best as a 10+ year strategy—not a short-term win.

Read our advanced guide to property strategy

Ready to invest smarter?

Whether you’re just starting out or adding to your portfolio, we’re here to help. Property Brokers has the reach, insight, and experience to support your investment success - every step of the way.

Get a free property rental appraisal

Answering your questions about investing in property

• Is rental property a good investment in 2025? Yes, especially for long-term investors focused on yield, tenant demand, and manageable holding costs.

• How do I get started investing in rental property? Start with a rental appraisal and talk to one of our team to assess your goals and buying power.

• What kind of property makes the best investment? Well-located homes in high-demand areas with low maintenance needs and strong rental appeal.

• How much deposit do I need for an investment property in NZ? Generally 35% under current LVR rules, but this varies. Ask us about using equity or exemptions.

• Is now a good time to buy rental property? Yes - for buyers with equity, good advice, and a long-term view, 2025 offers real opportunity.

• Can I buy with a small deposit or using home equity? Yes, depending on your current lending and equity position. We can help you assess options.

• Do I need a property manager to invest in rental property? You don’t need one - but most successful investors rely on professional management to reduce risk, improve returns, and save time.

Want to know more about Property Brokers' superior property management service? Check out our FREE guide here!