Follow Us

Buying A Rental Property

Home Buying A Rental Property

Want to buy a rental property?

Many people feel that buying a rental property is an important part of their own financial success story and are keen to know how to do this.

What is a rental property?

A rental property is typically a home that you buy to rent out. Many people choose to rent out different types of properties, such as apartments, townhouses, terraced houses, and freestanding houses. A rental property can bring you additional income and help you build your property portfolio. It also has the potential to increase in value (historically property prices have climbed over long periods of time) and return additional money.

What types of rental properties are there?

Freestanding Houses – These are “standalone” houses. In the current market, freestanding houses in major cities are relatively expensive, and a lot of people have been looking at buying freestanding houses in other smaller towns or centres.

Townhouses – Townhouses, sometimes used interchangeably with terraced houses, can refer to properties that are semi-attached or attached to others. A townhouse typically has access from the ground floor, however there are different interpretations of the word. Townhouses seem to balance the attractiveness of a ground floor house with the cost advantages of an apartment. It may be possible to get townhouses at affordable prices in CBD-style districts in certain towns or cities, as well as in city fringe areas. They are also better received by tenants due to the fact that they usually have ground floor access

Apartments – An apartment usually refers to a dwelling where you own one level of it. Apartments can range in the number of storeys they have from as few as 3 up to 10, 20, or even more. Although apartments are typically smaller than freestanding houses, they often represent a chance to buy in a highly sought after location. Many people own apartments as rental properties in busy central business districts because they believe there will be high demand from businesspeople and students who find the proximity of the property to their workplace or school advantageous.

There are also other types of rental properties, or variants. These can include, but are not limited to: other types of dwellings, studios, flats, boarding houses, and so forth.

Can I afford a rental property? How do I use the equity in my existing home?

If you already own a home, it may be possible for you to buy a new rental/investment property without having to put down an extra cash deposit. This can be done by leveraging your existing home’s equity in order to secure a large loan on the new property. For example, if more than half of your mortgage has been paid off, you may be able to buy an investment property.

A lender or bank is likely to also consider your income and expenditures. For example, if they deem your income not enough to sustain a rental property, even though the rental income may match or exceed the mortgage payment, you could be rejected. Therefore it’s worth talking to a financial adviser about how this, and other factors and considerations, work.

What deposit is required for an investment property?

It is possible that a 10-15% deposit is acceptable for an investment property if it is newly built. In other cases, you may need a 30% deposit. For this reason, many people are considering buying a newly built property due to the lower deposit requirement.

In the case that you already own property, you may not need a ‘cash deposit’ – it is possible to leverage, or transfer, the equity from your existing property.

Can I buy an investment property if I don’t already own a house that I live in?

Yes, this may be possible.


Just Financial is a professional financial adviser service and helps you with buying a home, using your KiwiSaver, insurance and more. Ask us to help you with your financial goals.

  • Home loans
  • Using your KiwiSaver
  • Saving money on your mortgage
  • Refinancing or debt consolidation
  • Low interest rates

  • Life insurance
  • Mortgage protection insurance
  • First home buyers
  • Help when the bank says no
  • Construction loans

Get Help From An Award Winning Financial Adviser

Want to buy a house? Looking for an amazing mortgage broker? Buying a house can be a challenging process. With the right advice, this can be made easy. Just Finance provides a professional mortgage broker service that can help you right throughout New Zealand. From first home buyers, to investors, as well as people who already have a house and want to refinance, there are many ways we help.



Client Testimonials

Our results speak for themselves. Our happy customers tell us they love our great service!

You May Also Be Interested In

Apply For A Home Loan

Find out how to apply for a home loan

Read More

Using KiwiSaver

Learn how to use your KiwiSaver to buy a house

Read More

Home Loans

Want a home loan for a place to live?

Read More

Refinancing & Saving Money

Have more than one debt? Want to save money?

Read More

Low Deposit Loans

Find out how you could buy a home with just a small deposit

Read More

Construction Loans

Read about getting a home loan for a newly constructed house

Read More

Request a Call Back?

Looking to apply for a home loan, refinance, debt consolidation, insurance or KiwiSaver? Contact us for more information

Send us a message