The big move across the ditch is happening, or you may even be here already. Many Kiwis making the jump own property in New Zealand — the family home, rental property, or both.
Key considerations:
Deposit on a home in Australia: If your capital is tied up in a NZ property, it’s going to make it very difficult to purchase a home in Australia. You need at least 5% of the purchase price, plus applicable stamp duty.
Accidental landlord: Renting out your home comes with challenges. Rent may not cover costs, impacting your ability to borrow in Australia. You’ll need a good property manager.
Borrowing capacity in Australia: If your NZ outgoings are greater than rent received, this negatively impacts your borrowing capacity in Oz. Aussie banks will discount the rent received and inflate the costs.
Cost of Ownership vs Return: Home ownership costs have ballooned. Council rates and insurance premiums eat a big chunk of rental income.
What I can recommend is that if you have a moderately sized mortgage covered by rent, seriously consider a “top up” of your home loan BEFORE you leave NZ. That way you can access some captive capital for a deposit on a property in Australia.