The Return of the Property Investor - And Why STRs Make the Most Sense

By Scott Mears - Aspire PRO Enterprises

After a few quiet years, property investors are creeping back into the market - but this time, they're playing a different game.

New data shows that mortgaged investors (especially those owning up to four properties) are making more moves. In places like Auckland and Christchurch, they’ve made up more than a quarter of recent purchases. But here’s the twist: they’re not chasing luxury pads or new builds. They’re eyeing up the affordable end of town - and for good reason.

Interest rates have dropped from their highs, tax rules have softened (hello, interest deductibility) and even the bright-line test has been shortened. The numbers suddenly look a bit more friendly again.

But this isn’t 2020. There’s no capital gains frenzy, no FOMO madness. If you're investing in 2025, you’re likely doing it for income, not windfall profits, and that’s exactly where short-term rentals shine.

Why STRs Are the Smarter Play

Traditional rentals are under pressure - rents are flatlining, migration has slowed, and housing supply is up. Investors betting on long-term capital gains may be in for a long wait. But short-term rentals? They’re delivering solid, real-time returns that help cover the mortgage now, not someday.

In many regions, we’re seeing STRs hit 80–90% occupancy, and guests are still happy to pay premium rates for well-managed stays. While long term landlords are stuck hoping the market picks up, STR owners are getting paid weekly.

A Shift from Wealth Building to Income Replacing

The real shift we’re seeing isn’t just about number, it’s about mindset. Property investment used to be about building wealth. Now, for many Kiwis, it’s about replacing income or setting up a safety net for retirement.

STRs make that possible. Instead of crossing your fingers for long-term growth, you’ve got a property that covers its costs, pays you monthly and still offers a slice of capital gain down the line.

If you’re thinking, “Plan B sounds like something I need,” you’re not alone. The return of the investor isn’t just about tax perks or low rates. It’s about finding a stable, trusted asset that delivers when other things don’t. That’s what STRs do best.