Moving to Australia – Sell or Rent Out NZ Property?

This article is for New Zealanders moving to Australia, and provides guidance and factors to consider when deciding whether to sell or rent out your NZ property. This decision becomes a crucial aspect of your relocation strategy. Additionally, we delve into leveraging Kiwi home equity for a mortgage top-up to purchase in Australia.

Moving to Australia - Sell or Rent Out NZ Property?

Sell or Rent Out?

Whilst difficult, New Zealand citizens must weigh the options of selling their property for immediate liquidity, or renting it out for a steady income stream. Consider the implications of each decision on your long-term financial gains and the challenges of managing property from abroad. 

Considerations for New Zealand Citizens Moving to Australia:

Firstly, let’s explore the key considerations to help you navigate this property dilemma of whether to sell or rent out your property, in the Land of the Long White Cloud.

Factors to Consider:

  1. Consideration of Immediate Liquidity vs. Long-Term Gains
  2. Steady Income Stream vs. Property Management Challenges
  3. Market Conditions
  4. Tax Implications
  5. Personal Attachment and Future Plans
  6. Currency Exchange Consideration
  7. Local Regulations and Compliance
  8. Potential Rental Income vs. Expenses
  9. Future Property Market Trends
Moving to Australia - Leverage Equity

1. Immediate Liquidity vs. Long-Term Gains:

  • Selling: On one hand, selling provides immediate liquidity, giving you a lump sum to support your relocation and potential investment in Australian real estate. 
  • Renting Out:  You might forego immediate cash, but can lead to long-term gains as property values may appreciate over time.

2. Steady Income Stream vs. Property Management Challenges:

  • Renting Out: Renting your property can generate a steady income stream, potentially helping with mortgage payments in both countries.
  • Challenges: However, managing a property remotely requires effective property management, considering factors such as maintenance, tenant issues, and unforeseen challenges.

3. Market Conditions:

  • Seller’s Market: Consider current market conditions. If it’s a seller’s market, selling might fetch you a favorable price.
  • Buyer’s Market: In a buyer’s market, renting out could be a strategic move, allowing you to wait for a more favorable selling environment.

4. Tax Implications:

  • Specifically, understand the implications of CGT (Capital Gains Tax) in both New Zealand and Australia, considering the timing of the sale and potential tax obligations in both jurisdictions.

5. Personal Attachment and Future Plans:

  • Emotional Value: Consider the emotional attachment to your property and whether selling aligns with your emotional well-being and future plans.
  • Return Plans: If you plan to return to New Zealand, renting out may offer a sense of security by keeping your property for potential future use.

6. Furthermore, Currency Excange Implications:

  • Currency Fluctuations: Selling your property might involve currency exchange. Consider potential fluctuations and how they might impact the funds you receive.

7. Local Regulations and Compliance:

  • Landlord Obligations: If renting out, familiarize yourself with landlord obligations and compliance requirements in both New Zealand and Australia to avoid legal issues.

8. Potential Rental Income vs. Expenses:

  • Rental Market: Research the rental market in your New Zealand location to estimate potential rental income.
  • Expenses: Balance the potential income with ongoing expenses, such as property management fees, maintenance costs, and potential periods of vacancy.

9. Future Property Market Trends:

  • Forecast: Consider the forecast for property markets in both New Zealand and Australia. Future trends may influence the decision to sell or retain your property.


To conclude, making the right choice to Sell or Rent Out your NZ Property, involves a thorough analysis of your financial goals, lifestyle preferences, and the local real estate landscapes in both countries.

Moving to Australia - Rent or Sell Your Property

Now, let’s explore the option of Mortgage Top-Up for Australian Property, by leveraging New Zealand Home Equity:

Leveraging New Zealand Home Equity

For New Zealanders contemplating a move to Australia, leveraging the equity in their New Zealand property to secure a mortgage top-up for an Australian property presents a strategic financial option. Here are essential considerations for this approach:

Factors to Consider:

  1. Equity Assessment
  2. Lender Approval
  3. Financial Stability and Affordability
  4. Currency Exchange Risks
  5. Legal and Regulatory Implications
  6. Interest Rates and Loan Terms
  7. Tax Implications
  8. Future Financial Planning
  9. Professional Advice
Moving to Australia - What To Do With NZ Property

1. First and foremost, let’s discuss Equity Assessment:

  • Property Valuation: Begin by assessing the current market value of your New Zealand property. A professional property valuation can provide an accurate estimation.
  • Equity Calculation: Calculate the equity by subtracting the outstanding mortgage balance from the property’s current value.

2. Lender Approval:

  • Lender Criteria: Understand the criteria of New Zealand lenders for providing a mortgage top-up. Some lenders may have specific requirements or limitations.
  • Loan-to-Value Ratio (LVR): Consider the Loan-to-Value Ratio, as lenders may limit the amount of equity you can access based on the property’s value.

3. Financial Stability and Affordability:

  • Income and Expenses: Lenders will assess your financial stability. Therefore, ensure your income is sufficient to cover the mortgage repayments, considering both New Zealand and potential Australian property expenses.
  • Affordability Checks: Lenders may conduct affordability assessments to ensure you can manage repayments, accounting for any currency exchange fluctuations.

4. Currency Exchange Risks:

  • Exchange Rate Volatility: Be mindful of currency exchange risks. Changes in exchange rates can impact the amount you receive in your New Zealand currency for the mortgage top-up.

5. Moving on to Legal and Regulatory Implications, it’s essential to understand:

  • Cross-Border Regulations: Understand the legal and regulatory implications of securing a mortgage top-up for an Australian property while residing in New Zealand. Seek legal advice to ensure compliance with both countries’ laws.

6. Interest Rates and Loan Terms

  • Interest Rate Options: Explore the interest rate options for the mortgage top-up. Fixed or variable rates may have different implications based on your financial strategy.
  • Loan Terms: Consider the loan terms, understanding the duration of the mortgage top-up and its alignment with your overall financial plan.

7. Tax Implications

  • Tax Deductibility: Inquire about the tax deductibility of interest payments on the mortgage top-up in both New Zealand and Australia. Understanding tax implications is crucial for financial planning.

8. Future Financial Planning

  • Long-Term Strategy: Consider how the mortgage top-up aligns with your long-term financial goals, especially if you plan to return to New Zealand in the future.
  • Exit Strategy: Have a clear exit strategy in case circumstances change, and you need to manage or repay the mortgage top-up.

9. Professional Advice

  • Financial Advisor: Consult with a Financial Adviser who specializes in cross-border financial planning. They can provide tailored advice based on your unique situation.
  • Legal Counsel: Engage legal counsel to ensure all contractual agreements and obligations are well understood and legally sound.


Therefore, leveraging the equity in your New Zealand property for a mortgage top-up in Australia can be a strategic move, but it requires careful consideration of financial, legal, and regulatory aspects.

Moving to Australia - Rent Out NZ Property

Important Advice on Selling or Renting Out NZ Property when moving to Australia

In summary, Trans-Tasman Relocation is complex and challenging.  Therefore, there is no straightforward answer on whether to sell or rent out your NZ property when immigrating to Australia. As such, it is strongly recommended that you seek advice from real estate professionals and financial advisors to ensure your decision when you move to Australia aligns with your unique circumstances and long-term objectives, regardless whether selling, renting, or leveraging home equity. 

Moving to Australia - Seek Financial Advice