Pros and Cons of Auckland Residents Selling Homes to Shift to Cheaper Regions

Date Published: 2 January 2024

Key Facts

• Thousands of Aucklanders have moved to cheaper regions during the pandemic to release equity in their homes.
• Despite the cost benefit, factors like jobs, desired living location, support networks and lifestyle adjustments should be considered before moving.
• Places like Dunedin, Palmerston North, Christchurch, and New Plymouth offer homes prices 41-50% cheaper than in Auckland.
• Equity release from selling an Auckland home can provide financial freedom and investment opportunities.
• Many Aucklanders are showing interest in the Waikato region, with houses being 38% cheaper than Auckland.
• People are advised to rent initially in the chosen location to test if the move will suit them.
• Considering family, jobs, and support systems before relocating is recommended.

Article Summary

Amid the pandemic, numerous Auckland homeowners have considered and enacted a shift to cheaper regions to release equity. These regions, which include Dunedin, Palmerston North, New Plymouth, and Christchurch, offer home prices that are 41-50% less expensive than in Auckland. This financial relief has led to a surge in Aucklanders showing interest in areas like Waikato, where housing is 38% cheaper.

Nonetheless, advisors and brokers have urged caution, stating that important factors need assessment before committing to such a move. These considerations include job prospects, chosen living location, support networks, and potential lifestyle changes in the new locations. For example, certain lifestyle amenities offered in Auckland may not be as accessible in smaller communities.

A common piece of advice is to test the waters of the prospective location. This act can include renting a property before buying, thus ensuring that the new location suits their needs and preferences. Additionally, pre-move considerations should examine aspects like family, jobs, and support systems.

Property owners are drawn to the idea of selling expensive Auckland homes, buying cheaper properties in the regions and having a sizeable balance for additional property investments or to live on. This shift also enables a slower pace of life, away from big city stressors like traffic congestion.

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