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:
- Rental Yield: The gross income.
- Tax Efficiency: Specifically, the deductibility of interest (especially on New Builds).
- 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.