Avalon’s Money Thread – Is it cheaper to live in New Zealand?
The cost of living here is to my mind very high – given the low wages and the quality of things you buy. So I think it’s vitally important to bear this mind and take a very honest look at your financial situation before you come out here.
I’d have to say I think this is where we fell down in our research before we came here. Although we are coping pretty well now – I did get a shock – despite having been here twice before. Despite all the prep work we did – I had a feeling that we would probably have missed something – and it would be big. Turned out it was the cost of living. Coupled I think with the realisation that we really didn’t want to have to curtail our standard of living “too” much.
Some things just don’t justify the prices imho – but then the same can said anywhere I guess. I find it odd that its often cheaper to ship books in from amazon.co.uk for example than to go to Whitcoulls (who by virtue of bulk shipping must be able to get books shipped here a lot cheaper than me as an individual – surely).
Things like petrol still seem really cheap to me – but we aren’t exactly earning a “normal” kiwi wage –and to be fair – we have had the benefit of a fuel card for a year, which helped enormously. I do feel that for most people – these costs must be prohibitive (but then that doesn’t stop people driving gazillion litre 4WDs)
(Note – we have now lost the fuel card – my view on the cost of petrol has therefore become more – how shall I put it – “colourful”
)(Note – you can get vouchers for 4-10c off a litre from certain supermarkets. It can be worth buying an extra tin of something to take you up to the next “level” of voucher))
Quote:
I think people feel ripped off as many of them see New Zealand as a “cheap ” place to be. The perception of the land of milk and honey has gone. As have the $3- £1 days.
Hopefully this perception will be dulling a little thanks to forums like this. We felt that with hindsight (that magical ingredient) the information giving at Expo’s and online was “massaged” to present NZ as cheap; they just left off the cheerful! NZ stats cost of living figures are not even funny. The problem with the 3-1 is that many goods are still priced at that, if not 4-1 or more, while the actual rate just doesn’t justify it. However, you won’t notice if you get into the rather good habit of not converting everything, it will drive you mad! We are having this problem with flights at the moment. A flight would cost £750 in the UK, but £1000 from here. From what I can see it’s because the 1-3 rate is being applied for the NZ price. That’s $625 difference – which is a LOT of money here. (178 coffees worth in fact 
)
When I actually sit down and look back on how much we have spent on things in the last year, it really is a mixed bunch of whether we feel we are paying more than we would have done in the UK, or less. There are many things we won’t pay for here because we don’t feel the price is justified by what you are getting. Gym membership is a good example. In other cases I’ve found things seem expensive, but then when I work it out, its actually rather cheap, food and entertainment would be a good example. Cheap night at the cinema, decent wines- also not too bad.
It isn’t always wonderfully inexpensive to live in New Zealand, not by a long shot. Even some migrants – for all the money we can bring over from selling our over inflated houses struggle with the cost of living (I mean putting food on the table and a roof over their heads – not going to watch cricket or going to the theatre!) Also bear in mind that if you cannot buy a house outright – your mortgage will be higher than at home because the interest rate is so much higher, and house prices are still rising in New Zealand.
It’s swings and roundabouts. Some will find it laughably cheap to live here and be able to live a wonderful life. Others will struggle and be very unhappy, but it’s so much down to what the individual situation is regarding money. My feeling is be prepared for a high cost of living and learn how to deal with your money while you are in your home country, then when you get here you will have the skills to deal with what you find.
Avalon’s Money Thread is a series of posts which were originally written in 2007 for an Immigration Forum. They came about by answering questions that forum members asked, about how to cope with the often difficult financial situation they face in New Zealand. They formed the basis of what was eventually to become the book Avalon’s Guide: after another year or so of drinking way too much coffee and finding out way more about taxes, money and investing that any sane person should.
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Related posts:
- Avalon’s Money Thread – should I pay off my home loan as fast as possible?
- Avalon’s Money Thread – Negotiating Wages.
- Avalon’s Money Thread: Moving your money to New Zealand
Comments
5 Comments on Avalon’s Money Thread – Is it cheaper to live in New Zealand?
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the boss on
Tue, 22nd Sep 2009 9:26 am
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Ivan Flinn on
Tue, 22nd Sep 2009 11:00 am
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Avalon on
Tue, 22nd Sep 2009 11:13 am
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edward on
Tue, 22nd Sep 2009 12:22 pm
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Paola Brett on
Tue, 22nd Sep 2009 12:23 pm
Yip you said it.
Why do you think any kiwi with a brain moves to Oz.
I pretty much gave up on living in NZ after moving back from Switzerland 7
years ago and realising over the next 2 years just how much more expensive it
was while still earning the same shitty money. Could live cheaper in Swiss!!
Nz is such a ripoff now.
Sad but reality
i see this trap time and again hence why we provide a “Cost of Living” differentials service. If you are serious about moving to New Zealand, get specific factual information to assist you in determining if New Zealand is right for you first – something I pride myself in providing after stepping away from the Public Service. This way, before you spend your money’s worth, you know what you’re getting yourself and your family into. Another service we provide is Settling Assistance – bank accounts, insurance, taxes, leisure activities, schooling, understanding our unique “kiwi culture”, etc. Stepping into a job? We provide advice on remuneration packages as well so you know you’re getting paid a good salary and not costing your employer an arm and a leg. I cannot put enough emphasis on obtaining the proper assistance prior to your life-changing experience! Moving to New Zealand should be an exciting venture not a step across the border to Oz! Lesson of the day… spend your money wisely by approaching a professional.
Ivan Flinn
International Advisor
Woburn International
Or buy Avalons Guide for $30.00 
I left NZ 36 years ago for Australia because of the ridiculous cost of of bringing up a family, in those 36 years it has got worse, much worse than other countries. I have travelled the world 3 times in those 36 years and nowhere have i found any body work so hard for so little as what they do in NZ, One other bitch, the crime rate and the indigenous youth gangs of which the law “as it is” has no answer to.
My husband is a Kiwi, but I am from the UK which is where we have lived as a married couple, and we arrived in NZ to settle here in May. We had visited a few times, and certainly on the UK Pound it did seem that NZ was cheap.
BUT before coming out here we did appreciate that property seems quite highly priced, to rent or to buy, relative to salary income, especially when you consider what you can earn in the UK , thus everything instantly becomes more expensive. I am now over the initial shock, but it does amaze me that I can pay more for Anchor butter right here in NZ where it is made than how much I paid for it in the UK, as well as the price of NZ Lamb whereas in the UK it tends to be one of the cheaper meats!
As you touched on, I cannot get over how expensive books are here! I now understand why Kiwi friends in the UK were astonished by our bookshelves, as they tended to go to the library than buy books in NZ due to their inflated price. I don’t understand it at all.
Then there are the Banks and all their charges, which seems so dated – thank goodness for Kiwi Bank!
That said, i do love the fact you can do so much outdoors here, and pretty much for free if you wish! It’s a beautiful country and there is so much to see and do. Hopefully things will improve over time, as there is an obvious issue with many Kiwi’s ending up ‘across the ditch’ in Oz since you can earn more and live more reasonably! …but then you would have to live in Australia! 
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