Heading overseas - sell or rent?
Question from Harsh updated on 26th February 2013:
We are moving to Sydney permanently with our three-year old toddler. We bought a house in October 2009 for $340,000 and we'd currently expect $400,000 selling it (including agent fees and other selling expenses). Our chances of coming back to New Zealand are very slim. Should we sell the house or rent it? Looking at the real estate in Sydney I am not sure if we'd be able to afford a property in the near future. We currently have a loan of $232,000 and a $10,000 flexiplus. We are paying mortgage of about $443 per week and expecting a rent of $450 per week. We planning to increase the flexiplus to $30,000 so that we cover our immediate expenses like insurances and repairs (if we rent the property) plus our initial settling costs in Sydney.
Our expert Kris Pedersen responded:
With the quoted rent this should cover the mortgage payments and other costs at the current interest rates, it is a wise idea to get your flexi increased. In regards to selling I would recommend looking at the market you live in and also the Sydney market and seeing where you are likely to get better growth in the short term. Obviously you need to make sure however that you don't extend yourself too far.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz