The investor purchased an 860m² section in Rotorua for $255,000 and planned to maximise the land by building two rental homes, creating multiple income streams and increasing overall portfolio value.
Working closely with the client, we designed and built two modern, fully accessible homes:
The total build cost came in just under $700,000, with the client also investing additional funds to subdivide the section for banking purposes, unlocking equity to fund the project.
Once completed, the properties were successfully rented to long-term tenants specialising in caring for disabled people, ensuring reliable tenancy and a socially responsible outcome.
Using overseas funds or existing capital allows investors to enter the New Zealand property market strategically. By:
Investors can maximise both cash flow and capital growth.
At Northway Homes, we guide investors through the entire process—from site selection, design, and construction, to accessibility considerations, tenant placement, and long-term growth projections—ensuring projects are completed efficiently and generate strong financial and social returns.
If you’re considering investing in property or developing land, our team can help you explore strategies to maximise both rental income and portfolio value over time.
Land Cost:
$255,000
Build Cost:
$700,000
Total Investment:
$955,000
Property Type:
New build investment home (x2)
Rental Income:
$1,350/week
$70,200/year
7.3%% yield
Estimated Market Value:
$1,200,000
Current Rental Income:
• 4-bedroom home: $700/week
• 3-bedroom home: $650/week
Annual Rental Yield:
• 4-bedroom home: 5.6%
• 3-bedroom home: 6.2%
After-Build Valuation:
• 4-bedroom home: $650,000
• 3-bedroom home: $550,000
Equity created:
~$245,000
Year
10
Weekly Rent
$1,904
Annual Income
~$99,000
Cumulative Income
~$820,000
Projected Property Value
$2,052,000
