The keys were still warm in her hand.
Months of searching, signing, and wondering what to buy… done.
Our new investor had just bought a brand-new townhouse in Manurewa.
She’d done what so many first-time investors do: relied completely on the rental appraisal from the same people who sold her the property.
It told her exactly what she wanted to hear: The appraisal of $750 would easily cover his costs.
The first crack in the dream
I checked the numbers. In that same complex, others had rented for $650–$660 a week.
“At that price,” she said, “I’d have to put money in every week. That’s not viable.”
We agreed to advertise at $670. But within half an hour, she changed her mind.
She’d posted in a local Facebook group, and the replies were instant: Easily worth $750!
The problem with listening to those not in the game
Social media can feel like the fastest way to gauge rent value. You get instant feedback from lots of people.
The issue?
- Most of these people aren’t landlords, property managers, or even tenants in your area.
- Opinions are based on a myriad of different things but often not facts.
Reality check: the market always wins
We listed at $750.
Seven days later: one enquiry.
The truth hit this new investor hard:
- A rent appraisal isn’t a promise, especially if it’s inflated just to sell you the property.
- Facebook “interest” doesn’t pay your mortgage.
- Tenants compare properties side-by-side. If it’s overprice, they’ll scroll right past yours
Lessons for first-time investors
This wasn’t just about one overpriced listing.
It’s a snapshot of the most common mistakes first-time investors make.
What NOT to do
❌ Rely on one rental appraisal
Especially if it comes from the developer or sales team. There’s an incentive to make the numbers look attractive.
❌ Confuse online hype with real demand
“Likes” and comments aren’t applications.
❌ Ignore your holding costs
Every empty week is money out of your pocket – mortgage, rates, insurance, body corp.
❌ Price emotionally
Wanting a number doesn’t mean the market will pay it.
❌ Skip researching the competition
If three other similar properties are $80 cheaper, tenants won’t justify yours.
What TO do instead
✅ Check real, recent rental data
Look for properties that are the same type, same location, rented in the last 1–2 months.
✅ Talk to multiple property managers
Independent managers have no reason to inflate rent just to sell you a dream.
✅ Understand your “walk away” point
Know the lowest rent you can accept while keeping cash flow healthy.
✅ Think long game
A tenant paying a fair rent for 12 months is worth more than chasing $50 extra for 12 empty weeks.
✅ Factor in vacancy buffer
Plan for at least 2–4 weeks vacancy a year in your financials.
✅ Keep emotions out of pricing
It’s not about what you “deserve”. It’s about what the market will bear.
The real cost of overpricing
For this owner, a few weeks of vacancy wiped out the “extra” she hoped to get from a high rent.
Instead of $750, she could have locked in a tenant at $660 immediately and covered most of her expenses.
Bottom line for new investors
Your first investment property is exciting. But excitement can cloud judgment.
Data, not wishful thinking, should set your rent.
And remember: a rented property at market rate beats a “perfectly priced” property that sits empty.
Sometimes the smartest move is the one that protects your cash flow (and your stress levels).
Want a rent figure based on real market data, not wishful thinking? Book your rental appraisal now. Give us a call on 09 630 2655.
