I’m seeing a lot of Kiwis jumping the ditch to a better life in Australia. Many have homes in NZ, and face the decision of whether to sell, or rent it out.
Key factors to consider:
- Deposit needs: You need at the very least 5% genuine savings. Having equity tied up in NZ property can be a major hindrance.
- Landlord responsibilities: Is your home a suitable rental? Can you find a good property manager?
- Tax considerations: Converting your own home to a rental can throw up tax issues around bright line and income tax.
My advice is to analyse the likelihood of an Australian property outperforming your NZ home in the medium to long term. Currently Australia is leading the charge.