Why “Cashflow Positive” is a Myth in 2026 (And What to Track Instead)

For the last decade, the “Holy Grail” of Kiwi property investment was the “Cashflow Positive” property; a house that pays for itself from Day 1.

In 2026, with interest rates settling at a “new normal” and insurance premiums rising by 15-20% year-on-year, the Cashflow Positive unicorn is dead. If you are waiting for a property that puts $100 a week in your pocket immediately, you will be waiting forever.

The Danger of Chasing Yield
Investors who obsess over cashflow often end up buying in low-growth regional towns or purchasing high-maintenance “do-ups” that look good on paper but destroy value through constant repairs.

The Engineer’s Metric: Net Asset Yield
At Venko, we advise clients to ignore the “Cashflow King” mentality and focus on Net Asset Yield. This is a composite metric that includes:

1. Rental Yield: The gross income.
2. Tax Efficiency: Specifically, the deductibility of interest (especially on New Builds).
3. Capital Growth Forecast: The historical and projected land value increase.

A brand new townhouse in Warkworth might cost you $50/week to top up right now. But if it has 100% interest deductibility, a 10-year builder’s warranty (Zero CapEx), and is located in a high-growth corridor, it is a far superior asset than a cashflow-neutral old villa that needs a new roof next year.

Don’t let a spreadsheet error dictate your wealth strategy. Look at the total lifecycle return.

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