The property had a large back section that wasn’t being fully utilised. Rather than leaving the space unused, the investor saw an opportunity to build a second dwelling on the back section, creating another income stream from the same piece of land.
Working closely with the client, we designed and built a modern 4-bedroom, 2-bathroom home that suited the Rotorua rental market. The design focused on low-maintenance living, strong tenant appeal, and practical family-friendly spaces. The build was completed for $400,000, delivering a quality property that would attract reliable tenants while keeping ongoing maintenance costs low.
Although the new home could be built without subdividing, the owner chose to invest additional funds into subdividing the property. Creating a separate title helped increase the overall value of the property and unlock additional equity, which helped the project get across the line with the bank while also strengthening the investor’s overall property portfolio.
Once the home was completed, we assisted the owner in securing a long-term tenant, ensuring the property began generating income as soon as possible. The home was successfully rented for $750 per week, providing a strong return and creating a second revenue stream from the same original property.
Many properties have sections that can support an additional dwelling, giving investors the opportunity to increase rental income and create equity without purchasing another property.
In this case, subdividing the land helped unlock additional equity, allowing the investor to secure bank funding and strengthen their portfolio, while also providing long-term rental income growth.
At Northway Homes, we guide investors through the entire process—from planning and design through construction and tenant placement to long-term projections—ensuring projects are completed efficiently and maximise both income and equity.
If you have unused land on an existing property, there may be an opportunity to unlock additional value and create another income stream.
Build Cost:
$400,000
Property Type:
4-bedroom, 2-bathroom new build investment home
Rental Income:
$750/week
$39,000/year
9.75% yield
Estimated Market Value:
$650,000
Additional investment:
Subdivision to create a separate title and unlock equity
Strategy:
Build on the back section of an existing rental property
Additional Support:
Assisted in securing a long-term tenant
Result:
Increased rental income and improved overall portfolio value
Year
10
Weekly Rent
$1,058
Annual Income
~$54,980
Cumulative Income
~$457,000
Projected Property Value
$1,112,000
