B25 - Buying or Renting in a Different Neighbourhood

Depending on where you live and the amount of money you can get from selling your home, you may be able to sell and move to another neighbourhood.

There are two ways you can work with this option:

  1. Buying: You could look to use the 'equity' from your house sale to buy a new home elsewhere. Equity is the money you are left with after any mortgage on your property has been deducted from the sale price.
    See B26 Selling and Buying a Cheaper Home for information on how to estimate your home's market value and how to get information on house prices in different areas.
    You will need to include the expenses involved in selling a house (such as legal, bank, advertising and real estate fees, moving costs and final utility bills) when you are working out how much money your house sale will give you.
  2. Renting: You may decide to sell and rent elsewhere rather than buy a new home. Many councils and some community housing providers offer rentals specifically for older people. However, most rental properties are in the private market.
    Tenancy Services provides advice for renters and up-to-date market rental data. Websites such as trademe and realestate.co.nz advertise current rental properties around the country. For more information about renting, see B22 Renting.

Pros and cons of buying

Pros

Cons

Pros and cons of renting

Pros

Cons

What do I need in order to take this option?

You need the funds and the right home to be available. Mortgage-free or small-mortgage homeowners whose homes have a high value have more flexibility to find a home that fits their needs well. However, home-owners who have high mortgages or low-value homes will have fewer choices.

Could this option limit my future choices?

Home-owners who sell and buy another home will have choices in the future. The exact range of choices will depend on how much they get from the sale of their home and the house price movement in the new location.

Home-owners who become renters may potentially limit their ability to buy again in future. However, this will depend on how much they get from the sale of their home and what they do with the money from that original sale.

For more information on estimating the value of your home

For more information on buying a home

For more information on renting