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  1. #1

    Default Sell the Auckland rental or keep it?

    My wife, two daughters and I are moving down to Wellington to be closer to family and for a job offer I simply couldn't turn down.

    We have an Auckland rental (was going to be a house for us to live in at one point) which is valued at 1.15 million and we rent out for $910 a week. It's in Epsom, grammer zone. We have 390k equity in it. The fixed loans finish up in a 1 and 4 years time.

    I'm the sole income earner, with $110k salary and my wife is a stay at home mother (kids are 4 and 1). Oldest will be off to school in the new year so wife is wanting to get back into part time work (maybe $30k a year?)

    Don't think we would be in a position to buy another property in Wellington around the $700-800k mark for some time. So thinking we should just sell the Auckland home. However, don't want to be kicking ourselves over lost capital gains when we are in our 60's and the house is worth 10 million!

  2. #2
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,461

    Default

    Hi,

    What is the chance of you wanting to move back to Auckland?

    I see this as the biggest issue, as if you are not careful you might be priced out of the Auckland central market in the future. Especially in a good school zone.

    Also standard stuff, if a rental check if taxable, brightline, subdivision, rezoning, tainting, depreciation recovery etc

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  3. #3

    Default

    Quote Originally Posted by Rosco View Post
    Hi,

    What is the chance of you wanting to move back to Auckland?

    I see this as the biggest issue, as if you are not careful you might be priced out of the Auckland central market in the future. Especially in a good school zone.

    Also standard stuff, if a rental check if taxable, brightline, subdivision, rezoning, tainting, depreciation recovery etc

    Ross
    Hi Ross,

    Slim chance, but not out of the question.

    I remember reading an article from Graeme Fowler who said any city over a population of 100,000 has balanced out over time. Do you disagree with this as would love to hear your thoughts. Article below.

    https://www.assetlab.co.nz/whats-the...-market-doing/

    How does one check if they are "tainted" this is our first purchase as a couple. However I did own a house with my brother who bought me out about 5 years ago so we "sold" it to him. Was a rental. Not under the brightline rules as bought it December 2016 so we could sell it in two/three months and be fine. Can't subdivide or re-zone.

    Thanks for the advice thus far!

  4. #4
    Join Date
    Sep 2008
    Posts
    7,304

    Default

    presumably not tainted then

    but as Ross says

    2 small kids, in the dble grammar zone...

    if you were buying in wellywood with the funds released - go for it

    if you losing sleep over a turning economy and possible global meltdown - sell it

    but if there's even a small chance you might want to come back from windy wellington to sunny auckland

    about the time your kids enter high school

    why would you sell?

    why would you mess with your kids educational options?

    why would you take them away

    from going to school with the future's movers and shakers?
    Last edited by eri; 04-10-2018 at 08:12 PM.
    have you defeated them?
    your demons


 

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