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Is it a good time to invest in NZ property?

Weighing the pros and cons in a flat property market.

Kelvin Davidson
Last updated: 9 July 2025 | 4 min read
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Despite a flat NZ property market, Cotality data shows more investors are buying. This is driven by the return of mortgage interest deductibility, a two-year Brightline Test, and lower mortgage rates which improve weekly cashflow.

However, risks are giving investors pause. These include zero rental growth, rising costs, political uncertainty, and new Debt-to-Income (DTI) rules. Economist Kelvin Davidson advises that a strong focus on cashflow is essential to service debt, as future capital gains are not guaranteed.

A market of two halves

The pull factors: why investors are buying now

The push factors: the risks giving investors pause

The final word: it comes down to cash flow

Author

Kelvin Davidson Kelvin Davidson
Chief Property Economist, Cotality