Sell or hold freehold property?

Our Experts Answer:

I live in Devonport myself and have noticed that its market can be different to other parts of Auckland. For example, when the Auckland market was booming last year, Devonport auction clearance rates weren't as high as other parts of the city. But, with the lifestyle factors attributable to the area and the short commute to the city (by ferry - definitely not the main road), it will remain a popular area to live and to buy in.

You don't mention if you would move out of Auckland if you sell. This is a big factor as rents are likely to continue increasing. Therefore, if you were to remain in Auckland but renting, over time the increased cash flow you get from developing a rental portfolio outside Auckland could be negated.

You also don't mention your income situation. But, if your income allows, there is one other option which could give the best of both worlds. This would involve retaining ownership in the Auckland market (either by retaining your Devonport property or by downsizing) and then looking to purchase properties outside Auckland which may give you a cash flow stream.