Is Now the Time to Buy Another Investment Property? Our Honest Take

October 16, 2023·Market Trends·3 min·

Thinking about adding another rental property to your portfolio? It’s an exciting idea — but as any seasoned investor knows, it’s not just about buying more bricks and mortar.

Is Now the time to buy another investment property?

At Nesto, we believe good investment isn’t about having more nests, it’s about having better ones. So before you dive into “property #2”, let’s walk through what the market is doing, what you’ll need to consider, and whether now might be a smart time — or a moment worth waiting for.

What the Market’s Saying

Right now, the New Zealand property market is in a phase of stabilisation and potential reset — meaning there are both opportunities and caution flags.

  • Reports suggest national house prices are largely flat, with some regional variation: while major cities like Auckland and Wellington have seen declines, certain regional areas are showing moderate growth.

  • According to one outlook, by 2026 both rental yields and property values are expected to contribute positively to returns — suggesting we could be approaching the start of an up-cycle.

  • On the flip side: high interest rates, affordability pressures, and supply-demand mismatches mean things aren’t clear-cut. Some markets remain oversupplied or stagnant.

In Nesto speak: the nest might be solid, but is it ready for lift-off? Let’s look at whether you’re set up to soar.

Is Now the time to buy another investment property?

Should You Buy Another Property Right Now?

Here are some key questions for you — yes, you — because the right answer depends on your situation, not just market headlines.

  • Are your current properties performing well? If your existing rentals are full, well-maintained and delivering steady return, you’re in a strong position to consider another. If they’re under-performing or causing you headaches, it might be wise to hold off and fix the nest you’ve got.

  • Are your current properties performing well? If your existing rentals are full, well-maintained and delivering steady return, you’re in a strong position to consider another. If they’re under-performing or causing you headaches, it might be wise to hold off and fix the nest you’ve got.

  • Do you have buffer for interest rates, maintenance and compliance? With interest rates still high and regulatory demands rising (think: insulation, heating, healthy homes standards), new properties often come with hidden costs. Buying another property isn’t just about the purchase price — it’s about ongoing investment. If you can absorb that without stress, that’s a strong sign.

  • Do you have a clear strategy and location fit? Some regional markets are showing promise. Major metros might have more competition or headwinds. If you diversify or choose areas where tenant demand and property fundamentals are solid, you’ll be better placed.

  • Is your property-management game solid (or ready to scale)? Buying another “nest” means more management — tenant finding, maintenance, compliance, etc. If you’re already burdened, adding more won’t free you up — it might tie you down. Having reliable support (that’s where Nesto comes in) becomes critical.

Nesto’s Bottom Line: Go When Ready, Not Just Because

So, is now the perfect time? For some it might be. For others it might be “soon”. Here’s how we’d summarise it at Nesto:

  • If your current portfolio is running smoothly, you have the financing and buffer in place, and you’ve identified a property in a strong location with good tenant demand — yes, now could be a smart move.

  • If you’re unsure about any of those elements — perhaps uncertain about future rental growth, or your properties need more work, or you’re stretched financially — then maybe pause, optimise what you’ve got, and prepare for entry when the conditions align better.

  • Either way — timing, strategy and readiness matter more than simply “buying another property because you can”. A well-run, well-positioned rental will outperform multiple poorly-run ones. Or as we like to say: nest smarter, don’t just nest more.

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