SearchMoving to Hamilton
Andrew asks:
(updated on Thursday, April 30th 2015)
Hi Ron, we have a house in Auckland (valued at $570,000 with $410,000 mortgage). We have to move to Hamilton, therefore we're wondering if we should to buy a second property, in Hamilton for $400,000? In a school zone, but needing renovation. Or should we try to buy one in Auckland for $400,000 and rent in Hamilton for the next three years? Thanks.
Our Experts Answer:
There are two sides of looking at your situation. If it is purely an investment then look at the numbers only. I would therefore consider buying the second property in the capital growth areas (central suburbs of Auckland). On the hand your own family home is a very personal and emotional aspect of life especially if you have children. Stability in the home and schooling are very important I would consider purchasing a home in the Hamilton area instead of paying rent for the next three years. I anticipate capital growth will come shortly to Hamilton because of the proposed inland port as well a as a capital boost in the agriculture areas through the commitment of an extra $10 billion per annum in trade products exported to China by year 2020. Your home in Auckland being rented out is sufficient to keep you on the property ladder and any equity that may accumulate over time could be recycled out to buy further investment properties.
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