Advantages of House and Land Packages

Customisation (for Owner-Occupiers)One of the key appeals for owner-occupiers is the ability to personalise the layout, finishes, and overall design of the home. Unlike existing stock, new builds allow you to create a living environment tailored to your lifestyle.

Modern, Low-Maintenance LivingNew homes are built to current building standards, offering energy efficiency, insulation, double glazing, and modern materials. This translates to lower running costs and reduced maintenance in the early years of ownership.

Attractive to TenantsFor investors, well-designed new homes offer broad appeal to tenants. Features such as internal garaging, open-plan layouts, and efficient heating make them easier to rent and often command a premium over older stock.

Fixed Costs and Budget ControlA fixed-price build contract (or turnkey package) allows for accurate budgeting and reduces the risk of cost blowouts. This is particularly valuable in an inflationary environment or when funding is tight.

Growth Potential in Emerging AreasPurchasing in well-planned subdivisions or growth corridors can deliver strong capital gains over the medium term as infrastructure and amenities come online.

Considerations and Risks

No Tax Offset Against Personal IncomeDue to ring-fencing rules in New Zealand, any losses from residential rental properties cannot be offset against your personal income. Depreciation and other deductions remain confined within the property portfolio.

Time Delays and Holding CostsWhether building yourself or purchasing off the plan, there is typically a 9 to 18-month delay between land settlement and completion. During this time, there may be no rental income to offset holding costs.

Valuation Risk at CompletionIf the final valuation at build completion falls short of the purchase price or construction cost, additional equity may be required to meet the bank’s lending criteria. This is a particular risk in softening markets.

Oversupply in Larger DevelopmentsIn large subdivisions with high levels of similar stock, competition can suppress both rental yields and resale value. Design differentiation and site selection are essential.

Final Thoughts

House and land packages offer an appealing path to ownership or investment, especially for those seeking certainty, modern design, and long-term value. Whether you choose to fund the build and capture the margin, or opt for a completed turnkey product, your success depends on selecting the right location, builder, and financial structure.

If you are considering a house and land investment or looking to personalise your own build, get in touch. We can walk you through the risks, run the numbers, and ensure your next move is a smart one.