How do you know that the suburb you are eyeing for your next new home is really where you want to be?
Is it wise to try before you buy and rent in the neighbourhood before committing to it? We talked to experts to find out.
New Zealand Sotheby's International Realty agent Pene Milne says people’s choices of neighbourhoods are normally driven by proximity to work, schools and lifestyle.
Everyone does their own research before picking the ideal suburb, but Kiwis rarely rent before buying, she says.
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“It’s an option but I don’t see it happen very often. Most people have already worked out where they want to live.
“In my 18 years I don’t have a very big experience of people saying ‘let’s go rent for six month’ because people would normally avoid moving twice, especially if they have kids,” Milne says.
More often buyers will rent in the suburb if they can’t find the perfect property and are waiting for it to come up on the market, she adds.
It is important to check out facilities, schools and shops in the area as well as figure out the infrastructure, and things like public transport and a traffic flows.
You can do so when you are going to open homes and going for more drives around the area, but the weekend feel of a place may be very different from that of weekdays, with commutes to work and school factored in.
Many don’t opt for trying before buying because of the costs involved.
Generally tenancy agreements are mainly long-term and a short-term rental AirBnB could break the budget.
“There’s easier ways for them to research using different tools,” Milne says.
Ray White Remuera property agent Nick Lyus says it’s common to rent before buying when moving to a new city, rather than just a new neighbourhood across town.
A lot of people would rent out their existing property and rent in the area where they want to buy before committing to purchasing.
Moving from Auckland to Tauranga is a classic move at the moment with many testing the market through renting for six months to a year, Lyus says.
“If you hate it, you still have the original option to go back to,” he adds.
Having a vacation or staying for a weekend at a place where you potentially want to live will not let you make up your mind wisely.
“It’s always rose tinted when you’re going away for a weekend. You need to do the daily grind to understand what it’s like living there from day-to-day. You have to know the commute, schools, neighbours.”
Waikato Real Estate property manager Ksenia Kruchkina says people from other cities or even countries tend to rent in Hamilton before buying.
“I had a few families from South Africa who are renting while they are waiting for visa to get processed. They are seriously thinking of buying something but can’t until the visa is approved.”
If you don’t like what you’ve tried you will pick a different suburb, but rentals are normally under a one-year fixed term contract.
