Having driven the Aussie spec Latio (1.8 hatch though) regularly for the past 3 years, and being a current owner of a 2.0L Forte; I'd say the Forte is a much better car. The Latio is a smaller car although for its size the rear interior space is cavernous. Driving wise, the Latio's engine struggles to keep up with the more powerful 2.0 of the Forte but nevertheless the Nissan does offer a smooth and comfortable ride. Forte's gear box is comparatively a letdown that restricts the real potential of its ThetaII yet it is more than competent for daily commuting and the occasional traffic light drag race.

Can't really comment on 1.6 versions of either, but both are probably underpowered.

For similar amounts of money, I'd say go for the Forte. There's always the worry regarding Naza's after sales service but as the numbers of Forte owners grow they'll need to buck up sooner or later.

Long term reliability is unknown for the Forte, but the perception that Korean cars are fragile is so outdated. Hyundais and Kias of recent years are no less sturdy compared to the Japs so it shouldn't be a worry. If you've sat in a Grand Carnival you'll realise that it is built like a tank.

Interior wise, both are plasticky as with any other rivals of the same segment. The Forte's dashboard has some soft, padded plastics whereas the Latio's are all hard. However the Forte's door panels are hard so it'll be less comfortable if you rest your elbow there for long periods although you really should keep both hands on the wheel. The Latio's side panels have a softer feel. Central console-wise, Forte wins hands down... All the buttons and dials click/roll/press with a solid clunk. Latio's stereo is ok but the knobs for the aircon controls feel just like any other car... not bad but too basic.

Forte's rear seats are quite thin whereas Latio's is very 'meaty'. Nevertheless, since you'll be spending more time driving. I'd say the Forte's larger cockpit with more supportive driver seat is a nicer place to be in.