Moving Auckland to Melbourne - advice on whether to buy or not

[Millsy]

Hi,

I'm looking for some advice on the Auckland vs Melbourne property market.

My husband has secured a job in Melbourne and starts in July, we are selling our home here in NZ (it's too good to rent) but aren't sure whether to risk the exchange rate fluctuations and transfer our money to buy a new home in Melbourne or reinvest the money in Auckland rental properties.

We are unsure how long we'll be gone for, it could be 2 years or 20 years...

If we rent in Melbourne we need to find a place suitable for dogs which could prove difficult. Also my husband hates the idea of renting and loves having his own place.

We currently have NZD 450K equity in our property. My biggest concern is losing money on exchange rates and stamp duties etc.

Keen to hear your advice or experiences,

Millsy

[Damap]

Generally you just have to ignore all that. When it;s your own money and your own home do what feels right. Being in Melbourne property is as good as Auckland, many would say better. So just do what your heart tells you.

[Anomaly14]

Can you keep an eye on the exchange rate for a while and switch your money over when it's at a good rate?
It would be best to rent for a while to see which part of Melbourne you like, but prices are going up so fast at the moment, don't be out of the property market too long. Remember you have to pay stamp duty in Melbourne.

[lissie]

You should also get some sort of first home buyers grant to cover the stamp duty. You'll miss the simplicity of the Australian system.

Will you ever come back to Auckland? If so, you should stay in the market either by renting it (people who like "good" houses rent too) or by buying a rental in akl. (Though be careful of the CGT rules for Australian residents).


You'll need to develop a credit history in Australia - so it's quite likely you won't be able to get a mortage for a while. It took us 3 months to even get a credit card with $1k limit (and that was with good jobs)

[PTILoveYou]

I personally would rent out the Auckland home, and rent in Melbourne for a while and see what happens first.

What if you don't like Melbourne and want to move back?

What if your husband's job is not what it makes out to be?

What if your kids hate that place?


Also since Auckland property market is going full steam, if you sell now, depending on how well Melbourne market does, if it's slower than Auckland, you may find yourself not able to buy in the same suburb in Auckland in case you change your mind and want to move back.

[cube]

NZ$ has eased against AU$ and others - back to AU$0.90 now, and I'd expect a period of stability (famous last words). Both reserve banks made unexpected interest rate comments, so you should be set for the next 3 months or so.

As Damap says, go with your heart where the family home and money is concerned.

[Damap]

Much talk about a weakening NZD as the US raises interest rates.
NOTE: I am ALWAYS wrong about currencies :_)

[Bluecoat]

How did you get on after a year ...keen to know hats happening in Melbourne market and tips for investing there

[Don't believe the Hype]

Melbourne market has been strong since about 2012... It grew strongly through 2010 then pulled back in some areas as much as 10% in 2009-2010 before growing steadily again. Interestingly even with the pull back over 2009-2010 there was little or no talk of slowdown.

yields in Melbourne (obviously) vary greatly but they can be as low as 3% and as high as 6%.

inner west suburbs are popular with young families... Inner south east and east popular with young singles...

If it were me I'd be looking at Frankston - beachside suburb 40mins (60 mins peak) from CBD right on the bay... Some of the best bay beaches in Melbourne. While 40min from CBD it is a city of its own with all the infrastructure you need... Hospitals, university, major shopping cente, train line to Melbourne and good freeway access. Being 40 odd mins south of the city you're right at the start of the mornington pinninsular which is where many in Melbourne goes for holidays - If you live I comparable cost house north of the city you're kind of in the middle of nowhere except maybe the airport (and miles from the beach)

The best bit is (because of historical biases) if you go 5-10 mins north or south of Frankston you will pay 30%-50% more for the same house.

And with NZD so strong might be worth investing $400-$600k in Frankston