Property investment is one of the most powerful ways to build long term wealth in New Zealand. But like any investment, it comes with risks, especially if you’re not prepared. Whether you’re just starting out or already have a few properties under your belt, avoiding these common mistakes can save you time, money, and stress.

At First National Progressive we’ve been in the property management business for over 25 years, managing more than 700 properties across Christchurch. We know the local market inside and out.  We’ve seen firsthand what works (and what doesn’t) when it comes to property investment.

Here are the 10 most common property investment mistakes we see in Christchurch and how to avoid them:

  • Not Doing the Numbers

Too many investors jump in without understanding the financials. You need to calculate both gross and net yields, factor in maintenance, insurance, rates, and potential vacancies. A property that looks good on paper might not stack up once all costs are considered.

  • Buying with Emotion

Christchurch has a mix of charming character homes and sleek new builds, but don’t let aesthetics cloud your judgment. Investment decisions should be based on data, location, and return on investment, not personal taste.

  • Ignoring Market Cycles

Buying at the peak of the market can limit your capital growth. Christchurch’s property market has its own rhythm, and timing your purchase can make a big difference. Always consider long term trends, not just short term hype.

  • Underestimating Maintenance Costs

Older Christchurch homes, especially those built before modern building codes, can come with hidden costs, think insulation, plumbing, or earthquake strengthening. Always get a comprehensive building inspection.

  • Poor Location Choices

Not all suburbs are created equal. Some areas may have higher vacancy rates or lower tenant demand. Do your research on school zones, transport links, and future development plans.

  • Overleveraging

Using too much debt can magnify your losses if the market dips. Leverage is powerful, but risky. Make sure you have a buffer for interest rate rises or unexpected expenses.

  • Not Understanding Tax Implications

Recent changes to tax rules in New Zealand, like the removal of interest deductibility on existing properties, can significantly affect your returns. Always consult a property savvy accountant.

  • Skipping Professional Advice

DIY investing can be tempting, but property is complex. A good property manager, mortgage broker, and legal advisor can help you avoid costly mistakes and structure your investment correctly.

  • Failing to Plan for the Long Term

What’s your exit strategy? Are you investing for cash flow, capital gains, or both? Without a clear plan, it’s easy to drift and make reactive decisions. Set goals and review them regularly.

  • Choosing the Wrong Property Type

Not all properties make good investments. For example, some Christchurch townhouses may have limited land value or high body corp fees. Understand what tenants in your target area actually want.

 

Bonus Insight: What’s Really in Demand in Christchurch’s Rental Market?

While two bedroom, two bathroom townhouses might seem like a smart investment, especially with so many new builds hitting the market, they’re becoming increasingly difficult to rent in Christchurch. There’s currently an oversupply of these properties, particularly in fringe suburbs, which has led to longer vacancy periods and more competition among landlords.

Most Popular Rentals Right Now:

  • Three to four bedroom family homes in good school zones (e.g., Merivale, Fendalton, St Albans, Burnside, Cashmere)
  • Properties with outdoor space or a backyard, especially appealing to families and long term tenants
  • Well insulated, warm homes with heat pumps and double glazing (tenants are increasingly energy conscious)
  • Student flats near the University of Canterbury, especially 3–5 bedroom homes, due to a rise in student numbers

Oversupplied and Slowing:

  • New build 1–2 bedroom townhouses, especially those without parking or outdoor space
  • Densely packed developments in areas without strong transport links or amenities

This shift means investors need to be more strategic than ever. Buying the wrong type of property, even if it looks like a bargain, can lead to longer vacancies and lower returns.

Let Us Help You Invest Smarter

We specialise in helping Christchurch investors make smart, informed decisions. Whether you’re buying your first rental or expanding your portfolio, our expert team is here to guide you every step of the way. Check out our Investor Support Services webpage https://fnproperty.co.nz/investor-support-services/ or contact us today to book a free consultation with one of our property investment specialists.

Let’s build your future, together.