Gross yield is annual rent divided by build cost. A new two-bed minor dwelling typically rents for $500 to $800 a week in New Zealand, so against a $166,000 Kōwhai 60 the gross figure sits near 19% at a middling $600 rent, arithmetic no house purchase can match, because the land under a backyard build is already yours. Indicative planning numbers, not financial advice.
Set the build cost and the weekly rent, and see the gross yield and how fast the build pays itself back.
Gross yield before rates, insurance and upkeep. Indicative only, not financial advice.
Indicative two-bed rents for every area we cover, with the gross yield and payback each implies on a $166,000 Kōwhai 60 turnkey build. Every area links to its own page.
| AREA | REGION | TYPICAL RENT | GROSS YIELD ON $166K | GROSS PAYBACK |
|---|---|---|---|---|
| Queenstown | Tāhuna · Central Otago Lakes | $800/wk | 25.1% | ~4.0 yrs |
| Auckland | Tāmaki Makaurau · Auckland | $750/wk | 23.5% | ~4.3 yrs |
| Wānaka | Central Otago Lakes | $750/wk | 23.5% | ~4.3 yrs |
| Wellington | Te Whanganui-a-Tara | $700/wk | 21.9% | ~4.6 yrs |
| Tauranga | Bay of Plenty | $650/wk | 20.4% | ~4.9 yrs |
| Hamilton | Kirikiriroa · Waikato | $620/wk | 19.4% | ~5.1 yrs |
| Christchurch | Ōtautahi · Canterbury | $620/wk | 19.4% | ~5.1 yrs |
| Napier & Hastings | Ahuriri & Heretaunga · Hawke's Bay | $600/wk | 18.8% | ~5.3 yrs |
| Nelson | Whakatū · Te Tauihu | $600/wk | 18.8% | ~5.3 yrs |
| New Plymouth | Ngāmotu · Taranaki | $580/wk | 18.2% | ~5.5 yrs |
| Whangārei | Te Tai Tokerau · Northland | $580/wk | 18.2% | ~5.5 yrs |
| Dunedin | Ōtepoti · Otago | $580/wk | 18.2% | ~5.5 yrs |
| Rangiora & North Canterbury | Waimakariri | $580/wk | 18.2% | ~5.5 yrs |
| Palmerston North | Te Papaioea · Manawatū | $570/wk | 17.9% | ~5.6 yrs |
| Blenheim | Wairau · Marlborough | $570/wk | 17.9% | ~5.6 yrs |
| Rotorua | Te Arawa · Bay of Plenty | $560/wk | 17.5% | ~5.7 yrs |
| Gisborne | Tairāwhiti | $550/wk | 17.2% | ~5.8 yrs |
| Ashburton | Hakatere · Mid Canterbury | $540/wk | 16.9% | ~5.9 yrs |
| Whanganui | Whanganui | $520/wk | 16.3% | ~6.1 yrs |
| Timaru | Te Tihi-o-Maru · South Canterbury | $520/wk | 16.3% | ~6.1 yrs |
| Invercargill | Waihōpai · Southland | $500/wk | 15.7% | ~6.4 yrs |
Indicative planning figures based on typical advertised two-bed rents. Verify against Tenancy Services bond data for your suburb before committing. Gross figures before rates, insurance, maintenance and vacancy.
Gross yield is the headline; net is what lands in the account. Four deductions do most of the work between the two.
The same deposit chases very different arithmetic depending on whether it buys land or builds on land you already hold.
Buy a rental and most of the money buys the section under it, the part that earns nothing weekly. Build in the backyard and the entire spend goes into the thing that collects rent. That's why the gross yields in the table above sit at multiples of what whole-house rentals return, and why the honest risks are different too: not the purchase market, but your section's fit, your council's rules and your tenancy plan. The first two are exactly what the free site check and your council’s page answer before a dollar moves.
Run the arithmetic and judge for yourself: at a typical $600 a week against a $166,000 turnkey build, gross yield lands around 18%, a figure whole-house rentals can't approach, because a house purchase buys the land as well. The honest comparison is net-to-net, after rates, insurance, maintenance and vacancy on both sides.
Gross yield is annual rent divided by build cost. Net yield takes out the running costs: the rates increase from the added dwelling, insurance, maintenance, a vacancy allowance, and property management if you use it. The tool shows gross with an occupancy slider; the deductions are yours to weigh, and they differ by council and insurer.
The tool defaults to 96%, which is roughly two vacant weeks a year. New, warm, compliant two-beds sit at the top of every local rental market they enter. Across our covered areas the consistent report is that warm stock rarely advertises twice. Model 90% if you want a conservative floor.
Yes, rental income is taxable income in New Zealand, and what you can deduct against it depends on your circumstances. That's a conversation for your accountant before you build, not after your first tenancy statement arrives.
Plenty of backyard landlords self-manage: the tenant is metres away and the dwelling is new enough that maintenance calls are rare. A manager typically charges a percentage of rent in exchange for distance and process; the yield tool lets you knock their fee off the weekly rent to see the difference.
Divide build cost by annual rent: at $600 a week and 96% occupancy, a $166,000 build returns its cost in gross rent in roughly 5.5 years, and a $133,000 Fern 48 in under 4.5 at the same rent. After that, it's income on land you already owned, which is the whole argument in one sentence.
Free site check · typical rents for your exact suburb on the feasibility call.