Rent, Buy, or Hold? What To Do When Relocating

One of the most important things to consider when thinking about what to do with your home when relocating is market timing. The property markets in different cities can move independently—Wellington might be soft while Christchurch holds steady. If you’re making a long-term move, it often makes sense to sell and buy within a similar timeframe. That way, you’re not juggling two property markets or taking on unnecessary risk.

Rather than holding onto your current home and renting it out, there’s often a stronger case for selling and using the equity to purchase in your new location—especially if you’re planning to stay there for the foreseeable future.

That said, there’s also merit in renting first—especially if you don’t know the area well. Renting for 6–12 months gives you the chance to explore different neighbourhoods, school zones, and commutes before committing to a long-term purchase.

On the other hand, if you already have a good sense of where you want to be, buying sooner can provide greater certainty and stability—particularly if you have kids. Plus, if prices are expected to rise in your new city, it may pay to get in sooner rather than later.

If you sell your home and rent temporarily, you might be sitting on a decent sum—sometimes a few hundred thousand dollars. So, what should you do with that money while you wait to buy?

Avoid investing it in shares, crypto, or other volatile assets. While tempting, these markets can fluctuate sharply over short periods, and the last thing you want is to lose access to those funds when you need them. The best place for short-term money is in cash or a term deposit. The returns might be low, but your funds will be there when you need them.

• Every situation is different, but here are some key takeaways to guide your decision:

  • Avoid being out of the market altogether. If you’re selling, have a plan for re-entering soon.

  • If you’re renting first, make sure it’s purposeful. Use the time to explore the area, research school zones, and get a feel for the local lifestyle.

  • If you keep your old property, make sure it fits your financial plan. Managing a rental in another city comes with extra responsibility.

Relocating is a big move—literally and financially. Deciding what to do with your home when relocating takes some careful planning, but with the right approach, you can set yourself up for long-term success.

If you’re thinking about moving cities and not sure what to do with your current property—or how to finance the next one—our team at Lighthouse Mortgages can help.

If you’d like to learn more, check out these other episodes below.