I have been alot of places including both the North and South islands but it was before I was involved with real estate. Given that we are in an environment that in my opinion will be pushing rates quite a bit higher, no way would I be involved in any such short term financing, seems to me that it would be suicidal. I do not know what the banks you mentioned use to index the rates off of, so if it is local only to NZ then perhaps you are not as exposed. Seems to me that not just the US is overextended so when the money supply tightens up, and it will tighten up someday, those exposed to such short term lending instruments will be in potential problematic situations. Given that environment, it may not be a bad idea for you to sell and then sit on cash to swoop in on some possible good deals in several years.