buying a house in NZ

[printman]

My wife, little girl and I are planning a move to the wonderful world of New Zealand within the next few years and we have some questions concerning buying versus renting when we do get down there. First off, we're not sure about the permanancy of the move but will spend at least a year or two to see how things go. We've visited and love the place but we are keeping the options open. Should we sell the house we have state side and buy in NZ or rent and keep the house we're in now? The main concern is financial. I guess the main question is there any penalty for buying a house and then selling within a year or two if we chose to move back? Are there any special circumstances to be aware of for foreign home buyers? Anything along these lines would be a big help. Thanks folks.

[jamesthecarman]

I'd be inclined to keep your home in the US, just in case. Plus it will be some extra income.

I'd also recommend renting until you get a better idea of how permanent your stay will be (you probably know how long you WANT it to be, but give it some time here first). You also may not like the area you are in and fall in love with another part of NZ.

I'm not sure about penalties for selling shortly after buying.....but as far as foreign investment I don't believe there's anything special. Someone else may know more.

[selchie]

I agree with James about hanging onto your US house, if you can afford to. We also live on the West Coast, and if we should "fail" in NZ, I doubt we would be able to afford to buy another house here. We figure that we can take out some equity if need be, to buy in NZ.

We hope to either install a trusted friend in our house at a reduced rent, or have another knowledgeable (and trusted) friend be the property manager and rent it out at market value.

Good luck.