55 hours a week + small children at home + wheels starting to come off?
You may be tempted to dream of another life – one out of the city?
Selling up in Auckland, executing the escape: lower prices for homes, more relaxed lifestyle, and the people are so much friendlier! Imagine actually wanting to bump into your neighbour? What would it be like letting the kids walk home from school? One parent could stay home full time that way too.
Your present self, despite all its rage, is still stuck in the city like a rat in a cage. Should you stay or should you go? It depends on the lens that you’re viewing things. If you look at things financially, here’s why it may not be the smartest move:
- If you’re banking on building wealth through property ownership you can kiss the capital gains goodbye as soon as you settle up in the city. Property outside of Auckland, whilst it’s done well recently, usually doesn’t grow in value consistently much over time, and it’s possible outside of Auckland could be heading towards a crash. Selling in Auckland now, and purchasing outside of Auckland now, could be the easiest way to lose wealth. Having said that, if you’re exiting for reasons outside of building wealth through property, go for it – the real New Zealand is waiting for you!
- Property outside of Auckland is not as liquid. Owning a home in the biggest city of the best part of the world has its benefits – there’s always going to be someone who wants to take your place. The pool of pent up demand is very shallow in Te Kuiti compared to Takapuna so think twice about being able to make a ‘re-entry’ if you don’t like the ‘good life’ later on.
For your mental health, you may need to leave, but financially you may suffer and your future self could regret it – can you hang in there a little longer? In Auckland, the real risk is that the rate of growth could drop off a cliff – it may have just done so – but that’s really as bad as it usually gets. Outside of Auckland there’s a real risk however of actual values dropping off a cliff.
Future you to present you – If you have to leave, leave, but don’t sell up in the city!