To go or not to go...?
#1
To go or not to go...?
We're having major worries about the reality of life in New Zealand.
Although we love the country we can't seem to get the sums to add up!
Housing appears to be as expensive as the UK with rent being high too. Yet wages are so low in comparison - how does it work?!!! Being a teacher I will have to take a 50% cut in pay and that's if I work fulltime, OH will lose approx 1/3 of his wages too - this would be fine if it was relative to the cost of living but mortgages are sooooooo expensive in NZ
Can someone share any insight into how they have made this work? Do we just have to be rich before we go?! Any advice greatly appreciated.
Although we love the country we can't seem to get the sums to add up!
Housing appears to be as expensive as the UK with rent being high too. Yet wages are so low in comparison - how does it work?!!! Being a teacher I will have to take a 50% cut in pay and that's if I work fulltime, OH will lose approx 1/3 of his wages too - this would be fine if it was relative to the cost of living but mortgages are sooooooo expensive in NZ
Can someone share any insight into how they have made this work? Do we just have to be rich before we go?! Any advice greatly appreciated.
#2
Re: To go or not to go...?
You sure on the teacher salaries Flan? They didn't look that bad to me (comprative to NZ prices), and the houses are a darn sight cheaper ,and bigger than round here. Perhaps you're looking at expensive areas? Don't make the mistake of turning it into GBP, it won't work!!
#3
Re: To go or not to go...?
Have been told that a full time teacher gets around $45k. House prices seem to be around $400k for a 3 bed with monthly repayments of $2000+ a month. But on all the mortgage calculators on NZ websites we wouldn't even be able to borrow the money in the 1st place with our joint salaries
Looking at renting instead for a couple of years but that wouldn't leave much from our monthly take home either.....
... So even without converting into GB£ the numbers dont seem to add up. Just very confused about what to do now...
Looking at renting instead for a couple of years but that wouldn't leave much from our monthly take home either.....
... So even without converting into GB£ the numbers dont seem to add up. Just very confused about what to do now...
#4
Re: To go or not to go...?
Have been told that a full time teacher gets around $45k. House prices seem to be around $400k for a 3 bed with monthly repayments of $2000+ a month. But on all the mortgage calculators on NZ websites we wouldn't even be able to borrow the money in the 1st place with our joint salaries
Looking at renting instead for a couple of years but that wouldn't leave much from our monthly take home either.....
... So even without converting into GB£ the numbers dont seem to add up. Just very confused about what to do now...
Looking at renting instead for a couple of years but that wouldn't leave much from our monthly take home either.....
... So even without converting into GB£ the numbers dont seem to add up. Just very confused about what to do now...
$45k a year minus 33 percent tax gives $36 ,would give approx $3k per month. And OH would be working too? Do you need a house of $400k straight away?
(Please remember I'm a Primary teacher so not used to such huge numbers)
Have you had a look at the ace spread sheet that was on here a while back? It listed all income and outgoings for a family (of 5 I believe). I'll see if I can find it.....
Good luck and keep thinking positive thoughts
#6
Joined: Jul 2008
Posts: 164
Re: To go or not to go...?
We're having major worries about the reality of life in New Zealand.
Although we love the country we can't seem to get the sums to add up!
Housing appears to be as expensive as the UK with rent being high too. Yet wages are so low in comparison - how does it work?!!! Being a teacher I will have to take a 50% cut in pay and that's if I work fulltime, OH will lose approx 1/3 of his wages too - this would be fine if it was relative to the cost of living but mortgages are sooooooo expensive in NZ
Can someone share any insight into how they have made this work? Do we just have to be rich before we go?! Any advice greatly appreciated.
Although we love the country we can't seem to get the sums to add up!
Housing appears to be as expensive as the UK with rent being high too. Yet wages are so low in comparison - how does it work?!!! Being a teacher I will have to take a 50% cut in pay and that's if I work fulltime, OH will lose approx 1/3 of his wages too - this would be fine if it was relative to the cost of living but mortgages are sooooooo expensive in NZ
Can someone share any insight into how they have made this work? Do we just have to be rich before we go?! Any advice greatly appreciated.
Instead of renting a house alone, share a house with several others. That's what the majority of young kiwis do.
Stop drinking, stop smoking. Think about getting rid of your car. Live closer to work. Forget luxury items at the supermarket, live on cheap food.
Yes, sounds grim. The question is : How much do you want it? And what length are you willing to go to get it? Also, what are you prepared to lose if it goes wrong? Look at Genesis, he lost over a 100K in a failed finance investment....
Also, make sure you have the jobs lined up before you get here. I've heard of new teachers finding it incredibly hard to break into teaching here, some returning home without jobs - gotta have that "kiwi experience".
#7
Re: To go or not to go...?
If the sums don't add up for you while you are back in the UK...how depressing is it going to look when you've made the move and you have to survive on these considerably lower salaries against the same background of rising costs (high oil price with its knock on effect)?
I say if the sums don't add up, don't do it.
It doesn't make sense to me to relocate (at great expense) to the other side of the world on the equivalent of half your UK salary ......surely you're worth a bit more than that even taking into account the supposed cheaper living costs.
Make sure you are using the correct net tax figure in your calculations as well as every dollar earned is taxed.
Financially it's obviously easier if you have savings and/or equity in your UK property so that your mortgage can be lower or non-existent here. If your NZ income is insufficient for your day to day living though...your savings will soon run out and you won't be able to easily replenish them.
It also depends if you are the sort of person who enjoys the challenge of looking for the cheapest price for everything and carefully budgeting and counting every penny; and thinking twice about going to the cinema or having a meal out. I'm not so I would always avoid putting myself in that position if at all possible...many others would tell you to follow your dream come what may...but they don't have to live the reality, you do.
It's been said on here before 'that you can't eat the scenery' or 'the scenery doesn't pay the mortgage'
I say if the sums don't add up, don't do it.
It doesn't make sense to me to relocate (at great expense) to the other side of the world on the equivalent of half your UK salary ......surely you're worth a bit more than that even taking into account the supposed cheaper living costs.
Make sure you are using the correct net tax figure in your calculations as well as every dollar earned is taxed.
Financially it's obviously easier if you have savings and/or equity in your UK property so that your mortgage can be lower or non-existent here. If your NZ income is insufficient for your day to day living though...your savings will soon run out and you won't be able to easily replenish them.
It also depends if you are the sort of person who enjoys the challenge of looking for the cheapest price for everything and carefully budgeting and counting every penny; and thinking twice about going to the cinema or having a meal out. I'm not so I would always avoid putting myself in that position if at all possible...many others would tell you to follow your dream come what may...but they don't have to live the reality, you do.
It's been said on here before 'that you can't eat the scenery' or 'the scenery doesn't pay the mortgage'
#8
Forum Regular
Joined: Jun 2008
Posts: 171
Re: To go or not to go...?
Equity is how most people have afforded the move in the past.
Its also one of the reasons the NZ housing market has gone mad.
You've got to wonder what will happen with immigration now people can't pull huge amounts of equity out
Its also one of the reasons the NZ housing market has gone mad.
You've got to wonder what will happen with immigration now people can't pull huge amounts of equity out
#9
Re: To go or not to go...?
There's a lovely, sunny 4-bed place on a 900sqm section that's been on the market since Christmas last year down by us for $330,000 and they'd probably take an offer! Don't be misled by the prices - always barter. We offered $25k less than the asking price when we bought and they'd already dropped $20k. Kiwi's, we were told, frequently make very low offers - eg $60k less than the asking price so a realator told us and that was before the recession.
The only calculation I remember the bank doing was that the monthly mortgage repayment should not exceed 40% of the monthly income. We didn't have a huge deposit to put down and needed slightly over 95% mortgage initially so had to pay over the odds in terms of percentage repayments but had that fixed for 6 months during which time we got PR and were then less of a risk to the banks and were able to swop to a much more reasonable fixed rate mortgage.
There is such a huge selection of housing - all individual. Keep an open mind and just have a real good look around when you get here or come for a recce. You don't have to pay such high rent either. Top tip would be don't announce you're straight off the plane!
The only calculation I remember the bank doing was that the monthly mortgage repayment should not exceed 40% of the monthly income. We didn't have a huge deposit to put down and needed slightly over 95% mortgage initially so had to pay over the odds in terms of percentage repayments but had that fixed for 6 months during which time we got PR and were then less of a risk to the banks and were able to swop to a much more reasonable fixed rate mortgage.
There is such a huge selection of housing - all individual. Keep an open mind and just have a real good look around when you get here or come for a recce. You don't have to pay such high rent either. Top tip would be don't announce you're straight off the plane!
#10
By name and by nature
Joined: Mar 2005
Posts: 1,852
Re: To go or not to go...?
Hiya. I know someone who came here 3 years ago on a teacher's salary of $45k - that was only for 6 months and then he started getting increases. You don't say if you've got children or where you're going (sorry if I've missed it). Say there's only the two of you and assume a salary of $45k each. There are fantastic bargains to be had with houses at the moment. A few months ago I wouldn't have wanted to live in a rental property - now there are loads that I'd happily live in. We live in Glenfield on Auckland's North Shore. It's not as pretty as a few miles up the road but you'd get a lovely house for $350-$400k here and I MEAN a lovely house If you've got no debt other than a mortgage you'd be fine on a combined salary of $90k - anything above that is gravy. And interest rates are coming down anyway. As is the Dollar If you really want to come I wouldn't worry too much.
#11
Re: To go or not to go...?
Thanks for all your replies. We are a family of 3 (mummy, daddy and baby!) + 2 dogs! So house sharing not really a possibility! Lots to think about though so thank you for all the info
#12
BE Forum Addict
Joined: Jul 2007
Location: bottom of the world
Posts: 4,533
Re: To go or not to go...?
As has been said already find a job before you come.
My OH is a peadiatric nurse, a senior university lecturer and
has a masters in education. She is REALLY struggling to find work
The kiwis do things differently to the uk when it comes to emplyment.
Its DEFINATELY who you know not what you know.
My OH is a peadiatric nurse, a senior university lecturer and
has a masters in education. She is REALLY struggling to find work
The kiwis do things differently to the uk when it comes to emplyment.
Its DEFINATELY who you know not what you know.
#13
Forum Regular
Joined: Apr 2007
Posts: 62
Re: To go or not to go...?
Great if you can, but can be very difficult. I am a Software Engineer with a good degree and tons of experience. I've found that employers don't want to know until you have at least booked your flights. Well, that's the case in Christchurch anyway.
Good Luck. Think hard
Good Luck. Think hard
#14
Forum Regular
Joined: Aug 2008
Posts: 126
Re: To go or not to go...?
Hi there,
We went to NZ over a year ago with view to emigrating there, Beautiful place, but Salarys dire for us,(OH a Civil Engineer), House prices are great if you have a lump sum as a deposit, but otherwise we felt we would be struggling, Food was around same price for general stuff,(apart from the seafood pretty cheap , fuel dirt cheap, but then you have school fees, medical ins etc that would all add to the cost, also, apparently alot of newzealanders are moving to Oz, so that must say something so we have applied to queensland in the meantime !
Aud
We went to NZ over a year ago with view to emigrating there, Beautiful place, but Salarys dire for us,(OH a Civil Engineer), House prices are great if you have a lump sum as a deposit, but otherwise we felt we would be struggling, Food was around same price for general stuff,(apart from the seafood pretty cheap , fuel dirt cheap, but then you have school fees, medical ins etc that would all add to the cost, also, apparently alot of newzealanders are moving to Oz, so that must say something so we have applied to queensland in the meantime !
Aud
#15
Re: To go or not to go...?
Hi there,
We went to NZ over a year ago with view to emigrating there, Beautiful place, but Salarys dire for us,(OH a Civil Engineer), House prices are great if you have a lump sum as a deposit, but otherwise we felt we would be struggling, Food was around same price for general stuff,(apart from the seafood pretty cheap , fuel dirt cheap, but then you have school fees, medical ins etc that would all add to the cost, also, apparently alot of newzealanders are moving to Oz, so that must say something so we have applied to queensland in the meantime !
Aud
We went to NZ over a year ago with view to emigrating there, Beautiful place, but Salarys dire for us,(OH a Civil Engineer), House prices are great if you have a lump sum as a deposit, but otherwise we felt we would be struggling, Food was around same price for general stuff,(apart from the seafood pretty cheap , fuel dirt cheap, but then you have school fees, medical ins etc that would all add to the cost, also, apparently alot of newzealanders are moving to Oz, so that must say something so we have applied to queensland in the meantime !
Aud
Petrol is now $2 a litre which is about 72p a litre..so its cheap by UK standards. Housing is waaaaaaaaaaaaaaaaaaaaaaay too expensive relative to wages so you are correct saying most will struggle if they have a sizeable mortgage. Most people fare way better in Oz as you say.
I really believe to make NZ work for you (unless you are very well paid or rich) you need a big deposit or no mortgage atall and you REALLY want to live in a quirky, backward, strange little country.
You get off on the open spaces, the empty beaches, you don't mind living in poorly heated badly insulated houses (the latter is easy to overcome if you have some $ to chuck at it) and you like the scenery and don't mind being in the most isolated western civilisation on earth.
Point is there is alot you have to put up with living in NZ so you really do want to be here rather than 'oh it sounds a kind of a cool place'
Don't get me wrong I love NZ and for me all the positives far outweigh the negatives.