Is Property Still a Good Investment?

It is a question that comes up in every market cycle. When prices rise, when they fall, or when things feel uncertain. But if you step back from the short term noise, you will find that property has consistently proven itself to be one of the most reliable long term investments available.

The key lies in how property generates returns, how it behaves over time, and how well it is managed. Here is why real estate continues to be a strong and popular investment for those looking to build wealth.

Consistent Rental Income

Property offers something most other investments do not. It provides regular income that can grow over time.

Rental income gives consistent cashflow, which can support mortgage repayments, supplement other income, or help fund retirement. It is also relatively predictable, especially with stable tenancies and professional management.

For example, a rental property that brings in $1,060 per week earns $55,200 in gross income each year. On a million dollar asset, that is a 5.5 percent gross yield.

This often outperforms traditional savings or low risk investments, particularly when interest rates are lower.

Long Term Capital Growth

While rent provides income, the long term value of property lies in capital growth.

In New Zealand, house prices have historically risen significantly over time. Based on data from the Reserve Bank and the Real Estate Institute of New Zealand, median house prices have increased more than ten times since the early 1990s.

This growth builds wealth in the background. It increases your equity and opens up more options, whether that means refinancing, expanding your portfolio, or selling in the future.

Even during downturns, the long term trend has consistently been upward.

A Hedge Against Inflation

Unlike cash savings that lose buying power over time, property often keeps pace with inflation.

As the cost of living rises, so do market rents and property values. This helps protect the real value of your investment, which is why property is considered a natural hedge against inflation.

Leverage and Control

Property also allows you to use leverage. Most investors do not buy property outright. Instead, they use a mortgage, which means you can control a large asset with a smaller initial investment.

For example, if you buy a property worth $1,000,000 and contribute a 20 percent deposit, that is $200,000 invested. The remaining $800,000 is borrowed. But you receive 100 percent of the rental income and benefit from the full increase in property value.

Unlike many other investment types, you also have control. You can improve the property, adjust the rent, choose the tenants, or refinance the loan. These decisions can all help improve the performance of the investment.

Why Good Management Matters

Property is not something you can set and forget.

There are legal obligations to follow, tenants to screen carefully, maintenance to organise, and compliance standards that continue to evolve.

This is where professional management becomes so important. A well managed property performs better, attracts stable tenants, and maintains its value over time.

Final Thoughts

So, is property still a good investment? Yes, but only when it is approached with long term thinking, sound planning, and proper management.

It can generate income, grow in value, provide inflation protection, and allow investors to build wealth using leverage. But it also requires responsibility and ongoing care.

At RENTit, we work with landlords and investors who want expert support. If you are looking to invest in property or want to make sure your current rental is performing at its best, we are here to help.

Property continues to prove its value as a long term investment, combining rental income with capital growth.