22/05/2026
Most property investors are still relying on one thing:
Hoping the property goes up in value.
The problem?
Most investors are waiting for the market to create the equity and the cashflow for them.
I’d rather create it myself.
This is why I look at deals differently.
I want properties that can stand on their own without relying on the market bailing me out.
One of my recent projects looked like this:
• 10.5% gross yield
• Around $300,000+ equity created
• Positive cashflow on principal & interest repayments
• 0% deposit left in the deal after refinance
No, this wasn’t some unicorn one-off deal.
The strategy was actually pretty simple.
First, I bought cheap bare land in a regional town with strong rental demand and very little buyer competition.
Even though I live in Auckland.
Land cost was $145,000 in the Horowhenua region.
Instead of building new at today’s insane construction costs, I relocated two existing houses onto the site.
That changed everything.
Most new builds are now costing $3,200+ per sqm.
Relocating existing homes came in closer to around $900 per sqm instead.
Do you spot the leverage here?
• Brand new homes may only rent for 10–20% more than existing homes
• Once completed, new builds may only be worth around 18–25% more than existing homes at most
But the cost difference is enormous.
You’re often paying 3–4x more to build new… for only a marginal increase in rent and value.
That gap is where the opportunity exists.
Because they were existing dwellings:
• Limited building consent was required
• Reduced inspections compared to a new build
• No requirement for expensive new-build standards like double glazing and high insulation R-values
• They could still comply with Healthy Homes standards
Here’s what the project roughly looked like:
• Land: $145,000
• House 1: $141,000
• House 2: $145,000
• Renovations: $80,000
• Services & Site Works: $90,000
Total project cost: Approximately $601,000
From there it was just project managing the services, connections, decks, paths and basic landscaping.
Once completed, both houses rented for $550 per week each.
After completing an optional subdivision costing an additional $25,000, end values came in around $480,000 per house.
That meant:
• Approximately $960,000 total end value
• Around $359,000 equity created
Now here’s the part most investors miss.
Even after principal & interest repayments, rates, insurance and property management…
The property still produces around $2,000 surplus yearly.
That means:
• The property pays for itself
• The tenants reduce the debt every month
• The loan balance keeps shrinking over time
And even if the property never increased in value again from today…
At some point in the future it still becomes a debt-free income-producing asset.
That’s a completely different mindset to buying negatively geared property and hoping capital gains save the deal.
The reality is…
Most investors never create deals like this because:
• They only look in their own backyard
• They’ve never learned how relocatable projects work
• They don’t have the right systems, team or process around them
• They’re buying “standard” properties… instead of manufacturing wealth
If this resonates or have Q's send me and email: [email protected]
