Is Now a Good Time to Upgrade Your Home?
From Aaron’s YouTube: “better to buy or sell? #newzealand #firsthome #kiwisaver ##nzfirsthome #nzmortgage #homeloan #asb”
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Posted 4 May 2025
The short version
- Upgrading now can save you money as higher-value properties see bigger dollar savings from price drops.
- Selling first in this market is tough – renovated homes sell easier than tired or ex-rental properties.
- First-home buyers have advantages now with less competition from investors and falling interest rates.
- Moving fast with offers and due diligence can make the difference between securing a property or missing out.
The upgrade advantage
If you're moving from a $1 million home to a $2 million property in a market where prices are down 20%, you're saving more in dollar terms on the bigger purchase. That 20% drop means $400k off the new place versus $200k off your current one – putting you ahead overall.
This only works if you can manage both transactions though. The challenge comes when you need to sell first, as buyer demand is currently softer for unrenovated properties. Homes that show well and appeal to first-home buyers are moving faster in today's market.
First-home buyer opportunities
With fewer investors active right now, competition mainly comes from other first-home buyers – particularly those with more experience or deeper deposits. The silver lining? Prices are lower, rates are trending down, and you've got room to learn the ropes.
Aaron sees first-timers who educate themselves gaining ground. Watching market videos, researching areas, and understanding the buying process helps you move confidently when you find the right place.
Speed beats perfection
In slower markets, hesitation costs deals. Buyers who understand what due diligence they really need (vs what's nice-to-have) can submit cleaner offers with shorter conditions periods.
This isn't about cutting corners – it's about efficiency. Knowing which property checks truly matter and having your finance pre-sorted means you can act decisively when you need to.
This is general information, not personalised financial advice. For advice on your situation, talk to Aaron.
Keep learning
Upgrading your current home: how the money works
The deposit for your next home is usually already sitting in your current one, as usable equity.
Equity explained: buying an investment property without a cash deposit
Equity is your home’s value minus what you owe. If you have owned for a few years, you may be sitting on a deposit without knowing it.
How to Use Home Equity for Your Next Property Purchase
Use 80% of your current home's value minus your mortgage to calculate usable equity.
How to use your home's equity to buy an investment property
You can access up to 80% of your home's value as lending for an investment property.
Forever Home vs Investment Property: The Financial Trade-Off
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New builds can qualify with just 10-15% deposit, regardless of whether you'll live there or rent it out.
How to Buy an Investment Property Using Your Mortgage-Free Home
You can use 80% of your mortgage-free home's value as usable equity for an investment property.
House prices up but still below peak
NZ median house prices rose just 0.1% in February according to CoreLogic.