For city dwellers struggling with the current cost of living crisis, the grass may really be greener in rural New Zealand.
Homeowners can gain financial freedom by swapping urban abodes for a property in the countryside or provincial town, and not only end up with less – or even no – debt and a much nicer place to live.
Recent sales data from PGG Wrightson Real Estate shows more and more people are looking for a lifestyle change, with the numbers of properties in this category increasing 10 per cent over a 12-month period.
This trend is occurring right across all regions in New Zealand, says Peter Newbold, general manager of real estate and livestock at PGG Wrightson. It’s not just a better lifestyle away from the stress of the city that attracts new buyers, he adds, but the fact they get “more bang for their buck”.
“Your dollar goes a lot further and you get a much better product. It just makes sense to a lot of people. We know of cases where people have sold in the city to move to a provincial town, been able to pay off their mortgage and get a bigger and nicer house.
“Sometimes they’re able to put money in the bank as well, which gives them so much peace of mind, especially in these times when everything costs so much. It also helps to guarantee the future.”
The median house price for Auckland in May was $1,025,000, up 3 per cent from May 2023, according to REINZ. Properties currently listed by PGG Wrightson Real Estate include a 298sqm three-bedroom home on 763sqm right by the water on the outskirts of Thames for $975,000, and a four-bedroom home on 3.5ha, complete with seven paddocks, mature gardens and swimming pool at Piopio (near Te Kuiti) for $780,000.
Further south, an immaculate two-storey, four-bedroom home on 2.43ha with six-car garaging and a three-bay shed a couple of minutes’ drive from Temuka is available for $895,000.
If you want a character bungalow with kauri floors, leadlight windows and a clawfoot bath on 1158sqm, PGG Wrightson has what you’re after in Dargaville for $610,000.
If the sale of your city home nets you $1.5m, then the world is your oyster, says Newbold. You can have a four-year-old four-bedroom brick home in Pirongia (near Te Awamutu), complete with a separate two-bedroom dwelling on 4617sqm for $1.42m, or a Mediterranean-style house with pool, tennis court and several sheds on 4ha near Masterton for over $1.3m.
Rural properties may not only be cheaper, but in some cases can help to bring in some money. For example, some lifestyle blocks owners raise animals or grow produce to sell. Properties with outbuildings can provide space for interests like art or pottery that can earn extra cash.
It’s not unusual for rural or provincial properties to come with a second dwelling, which can be rented out. And in some situations, making money from subdividing is a possibility.
“You need to know what the local bylaws are but that’s definitely an option in some cases,” says Newbold. “My sister has just moved from Wellington to Martinborough and, at some point, she’ll subdivide her land. I know someone who bought 5 hectares outside a small town and subdivided, and they’ve made about five times what they originally spent.”
Rural living appeals to people of all ages, says Newbold. It’s a lot easier for young couples to get on the property ladder in provincial New Zealand than in the cities, while empty-nesters heading towards retirement like the idea of paying off their mortgage early and spending their remaining working years building up their savings.
Some factors that might have put people off moving out of cities in the past aren’t an issue any more. “They used to worry about the services that were available but, these days, provincial New Zealand has got everything you get in cities,” says Newbold. “There are good schools, retirement villages, sporting facilities, restaurants, cafes… you don’t have to drive 40 minutes to get a good cup of coffee any more.”
Newbold travels extensively throughout the country for his job and has noticed lots of small towns with facelifts over the last decade. “New businesses have come into town, shops have been done up and they’re looking good. It’s not the same as it was 20 years ago when you’d virtually get tumbleweeds rolling down the main street.”
The massive shift to remote working since Covid means many people can work from anywhere in the country. But if you do have to commute to work one or two days a week, there are a lot of small towns not far from bigger centres that offer value for money. “You’ve got places like Rangiora – not too far from Christchurch where you will get more space for less money.”
It’s not all about finances though. People are also drawn to small towns and the countryside for the sense of community and security, Newbold says. “People are often a lot friendlier and there’s less hustle and bustle than in the city.”
If you’ve been an urbanite for most of your life, a move to the countryside may seem a little daunting, good advice is important, says Newbold. “That’s especially so if you’re looking at a lifestyle block. Living in a small town or the outskirts of one is not too different to living in the city in many respects – but the more rural you go, the more you need to understand about things like septic tanks, potable water, irrigation water from a bore, and winterising your irrigation if you live somewhere that gets cold, so it doesn’t blow up in the frost.
“Our real estate agents at PGG Wrightson all live rurally or in provincial towns and they can help with everything you need to know. They are specialists who know the pitfalls of rural living as well as the benefits, and they can listen to what people want and assess what sort of property would be suitable.
“Because they live locally and are involved in the community, they can also help with all kinds of advice, like which doctor to go to.
“You do need to go into it with your eyes open, and do your due diligence, but our salespeople are hearing all the time from people who’ve made the move and say it’s the best thing they have ever done because it has taken the weight off their shoulders.”
*For more information: pggwre.co.nz/we-live-here-too