Can we afford to move? Please Help!
Jul 29th 2010, 10:47 am
#16
Forum Regular
Joined: Sep 2009
Location: Waiatarua, Auckland
Posts: 39
Re: Can we afford to move? Please Help!
HI,
We are been here 4 months and set to purchase our house in an expensive part of auckland
1. are we financially worse off making the move? - absolutley!
2. Do we have the luxuries we surrounded ourselves with in the Uk? - No
3. Is may car as good as it was in the UK? - not really
4. Are we in more debt, given the recent move, reccy etc? ( will also have our house in the UK) - god yes!
5. Have i taken two massive career steps backwards - OHHHHH yes!
however.....................
1. Do my kids love it - absolutley never looked back
2. Do i choose which beach to take the dog a walk on every day - Yes
3. Have we increased our quality of life after manchester - defo
4.Can i make a career come back - i am working on it so far so good
5. Are we happy despite missing family/friends - yes
6. Would i change it - NO
7. have we learnt to 'cut our cloth accordingly' - had too!
Its like when people talk about having kids, if you think about the cost you will never afford them! I think this has been our experience and dont get me wrong i have experienced real lows in the last 4 months thinking OMG what have we done - but as we embark on our 2nd mortgage ( in a financially astute manner) I know in my heart of hearts this is the right thing to do as life is just too short to experience regrets about what might have been
So good luck, stay focussed and as lots of people on here have advised me - remind yourself of the reasons you are doing this - mine certainly was not to earn great money and live a lavish life style - although i now have the things money cannot buy - happiness
We are been here 4 months and set to purchase our house in an expensive part of auckland
1. are we financially worse off making the move? - absolutley!
2. Do we have the luxuries we surrounded ourselves with in the Uk? - No
3. Is may car as good as it was in the UK? - not really
4. Are we in more debt, given the recent move, reccy etc? ( will also have our house in the UK) - god yes!
5. Have i taken two massive career steps backwards - OHHHHH yes!
however.....................
1. Do my kids love it - absolutley never looked back
2. Do i choose which beach to take the dog a walk on every day - Yes
3. Have we increased our quality of life after manchester - defo
4.Can i make a career come back - i am working on it so far so good
5. Are we happy despite missing family/friends - yes
6. Would i change it - NO
7. have we learnt to 'cut our cloth accordingly' - had too!
Its like when people talk about having kids, if you think about the cost you will never afford them! I think this has been our experience and dont get me wrong i have experienced real lows in the last 4 months thinking OMG what have we done - but as we embark on our 2nd mortgage ( in a financially astute manner) I know in my heart of hearts this is the right thing to do as life is just too short to experience regrets about what might have been
So good luck, stay focussed and as lots of people on here have advised me - remind yourself of the reasons you are doing this - mine certainly was not to earn great money and live a lavish life style - although i now have the things money cannot buy - happiness
Ifyou cannot afford to live in Auckland on $130,000+ per year you do not know how to manage your finances. We survive on nearly half that have two teenagers two cars a motorbike and enjoy scuba diving and tramping as hobbies and are extremely happy that we made the move.
Jul 29th 2010, 12:17 pm
#17
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Joined: Mar 2009
Location: Tamaki Makau Rau
Posts: 778
Re: Can we afford to move? Please Help!
We struggle on 120k in Auckland. It is a constant nightmare
But we just bought our first house last year though and everyone tells us that the first few years of a mortgage are the worst
We are paying off some credit card debt at $300 week so I think with out that we would feel pretty flash. The student loan and the pension eat into my wages for sure.
I don't think that we could spend much less
But if we were renting - that would be a different story.
Before our mortgage we rented a little place with our daughter and always felt well off.
I would say if you avoid the flash suburbs for a while you'll be great. After all, it's not like you need to think about school zones for a wee while.
Think about Ellerslie, Onehunga, Hillsborough etc etc. There are lots of family friendly burbs around that are cheap and in easy reach of greenlane
But we just bought our first house last year though and everyone tells us that the first few years of a mortgage are the worst
We are paying off some credit card debt at $300 week so I think with out that we would feel pretty flash. The student loan and the pension eat into my wages for sure.
I don't think that we could spend much less
But if we were renting - that would be a different story.
Before our mortgage we rented a little place with our daughter and always felt well off.
I would say if you avoid the flash suburbs for a while you'll be great. After all, it's not like you need to think about school zones for a wee while.
Think about Ellerslie, Onehunga, Hillsborough etc etc. There are lots of family friendly burbs around that are cheap and in easy reach of greenlane
Jul 29th 2010, 12:19 pm
#18
`
Joined: Oct 2003
Posts: 38,612
Re: Can we afford to move? Please Help!
I often read these types of posts.
i.e.
We cannot manage
We can manage easily.
I do think it would be helpful, in these cases ,to actually back that up with the budget rather than just make the statement .
i.e.
We cannot manage
We can manage easily.
I do think it would be helpful, in these cases ,to actually back that up with the budget rather than just make the statement .
Jul 29th 2010, 12:41 pm
#19
Life is what YOU make it.
Joined: Oct 2009
Location: Christchurch
Posts: 3,312
Re: Can we afford to move? Please Help!
Jul 29th 2010, 3:57 pm
#20
Near the outer fringe
Joined: Apr 2010
Location: Porirua
Posts: 466
Re: Can we afford to move? Please Help!
The common factor in the last two people who were struggling on a relatively high income is that they both have/had high mortgages and were servicing debt on HP and/or credit cards. Those two things are a matter of choice.
An earlier poster that said that NZ was too expensive to live also admitted to taking a 2/3 drop in salary to get there. Hardly surprising that the numbers didn't add up.
WP
Jul 29th 2010, 6:47 pm
#21
Forum Regular
Joined: May 2007
Posts: 260
Re: Can we afford to move? Please Help!
Afraid so!
In fact the income was $110k from me and around $20k from the Mrs who worked part time. Take home for me was (from memory), about $6k pcm, so it would have been a total take home of around $7k pcm.
Out of that, $2.5k was the monthly mortgage repayments (and we 'only' had a $300k mortgage, which at the time was equal to a £100k mortgage - less then we had in the UK), then we had to have loans for the 2 10 year old cars we bought, HP for the TV, F/F and lawnmower, car, house and buildings insurance, private med insurance was a must, we also were spending a fortune on food (buying in - not going out!), rates, school fees (not private LOL), etc etc.
Once the honeymoon period was over (after about 6 months), and we settled into earning and spending $NZ, we were dumbstruck at the cost of living. Of course we did not starve, and we had a reasonable life but, there was no money left that enabled us to set aside each month for a rainy day or, for our pensions, which really frightened us.
One Easter we took a break in Rotorua (hotel came to about $1,000), and we had to pay with our UK bank cards (still had some money left in the UK).
In fact I have just done the cost of living calculator at http://www.emigratenz.org/cost-of-li...w-zealand.HTML, and with rent / mortgage at $700 per week and the rest of the outgoings between modest and good (good items ie insurance, telephone, which are essential IMO), it was coming out at $120,000 gross earnings - and that excludes any pension.
I would love to come back to NZ, but the reality is that the earnings to the cost of living continues to terrify me.
And from reading the posts on this forum on a regular basis, this cost to earnings ratio continues, and surely people who emigrate to NZ, seek a better life than that of the UK, not a poorer one?
In fact the income was $110k from me and around $20k from the Mrs who worked part time. Take home for me was (from memory), about $6k pcm, so it would have been a total take home of around $7k pcm.
Out of that, $2.5k was the monthly mortgage repayments (and we 'only' had a $300k mortgage, which at the time was equal to a £100k mortgage - less then we had in the UK), then we had to have loans for the 2 10 year old cars we bought, HP for the TV, F/F and lawnmower, car, house and buildings insurance, private med insurance was a must, we also were spending a fortune on food (buying in - not going out!), rates, school fees (not private LOL), etc etc.
Once the honeymoon period was over (after about 6 months), and we settled into earning and spending $NZ, we were dumbstruck at the cost of living. Of course we did not starve, and we had a reasonable life but, there was no money left that enabled us to set aside each month for a rainy day or, for our pensions, which really frightened us.
One Easter we took a break in Rotorua (hotel came to about $1,000), and we had to pay with our UK bank cards (still had some money left in the UK).
In fact I have just done the cost of living calculator at http://www.emigratenz.org/cost-of-li...w-zealand.HTML, and with rent / mortgage at $700 per week and the rest of the outgoings between modest and good (good items ie insurance, telephone, which are essential IMO), it was coming out at $120,000 gross earnings - and that excludes any pension.
I would love to come back to NZ, but the reality is that the earnings to the cost of living continues to terrify me.
And from reading the posts on this forum on a regular basis, this cost to earnings ratio continues, and surely people who emigrate to NZ, seek a better life than that of the UK, not a poorer one?
Last edited by Heavenlyscent; Jul 29th 2010 at 6:50 pm.
Jul 29th 2010, 7:54 pm
#22
Just Joined
Thread Starter
Joined: Jul 2010
Posts: 19
Re: Can we afford to move? Please Help!
Oh, thanks so much guys, we really appreciate all your honest advice. It really has helped enormously. We're much closer to making a decision now so we'll keep you all posted and let you know what we decide... It's so exciting and slightly terrifying at the same time!
Huge thanks again
Huge thanks again
Jul 29th 2010, 10:42 pm
#24
BE Enthusiast
Joined: Mar 2009
Location: Tamaki Makau Rau
Posts: 778
Re: Can we afford to move? Please Help!
For our 335k mortgage cost us 560 week
power 220 month during winter - a lot less in winter
water 40 month
rates 110 month
broadband phone 100 month
credit card 300 week (Trying to pay off as quick as poss though hence high payments)
HP on new bed 167 month
health insurance 70 month
home contents and car 120 month
life insurance 109 month
Food 120 week
Veg 40 week
Afterschool care 51 week
Child activities 20 week
School stuff works out at 10 week
Cleaner 30 fortnight
swimming 13 week
Booze/entertainment 100 week
Mobile 40 month
Pet insurance 12 month
Donation 20 month
Those are the basics I think
Jul 29th 2010, 11:12 pm
#25
`
Joined: Oct 2003
Posts: 38,612
Re: Can we afford to move? Please Help!
Originally Posted by WP
I know where you're coming from, but I also understand it if people don't want to disclose too many details of their personal circumstances.
The common factor in the last two people who were struggling on a relatively high income is that they both have/had high mortgages and were servicing debt on HP and/or credit cards. Those two things are a matter of choice.
An earlier poster that said that NZ was too expensive to live also admitted to taking a 2/3 drop in salary to get there. Hardly surprising that the numbers didn't add up.
The common factor in the last two people who were struggling on a relatively high income is that they both have/had high mortgages and were servicing debt on HP and/or credit cards. Those two things are a matter of choice.
An earlier poster that said that NZ was too expensive to live also admitted to taking a 2/3 drop in salary to get there. Hardly surprising that the numbers didn't add up.
Jul 30th 2010, 10:17 am
#26
Near the outer fringe
Joined: Apr 2010
Location: Porirua
Posts: 466
Re: Can we afford to move? Please Help!
WP
Jul 30th 2010, 10:39 am
#27
Lost in BE Cyberspace
Joined: Jun 2005
Location: In a large village called Auckland
Posts: 5,249
Re: Can we afford to move? Please Help!
On $68.5k your take home per fortnight will be $1979.83 assuming you don't join Kiwisaver (pension scheme) you will have just shy of $1,000 per week to play with. You can probably work it backwards from there, looking at how much rent you can afford, rather than trying to work the other way.
For basic necessities you need to eat, heat and light your home and travel to work. From there I guess it's up to you how many 'luxuries' such as going out, hobbies, clothing, broadband/telephone, Sky TV plans you add. Essentially you can afford to live here, however any unexpected large costs will seriously rock you, don't have any rainy day funds.
Rent $400 to $500 per week
Heat & Light $30 to $50 per week depending on time of year
Allow $100 to $130 per month for phones and internet
Weekly groceries $140 to $180 per week
Around $80 to 100 per month for car and house contents insurance
Petrol obviously depends how far you drive to and from work, I average around $30 per week driving 125 kms per week
So far we've spent about $775 of your $989 take home pay and you start to notice that your weekly income doesn't go far and you will not have very much left at the end of each week to spend frivolously at the shops, go on holidays or indeed save for replacing major household items. If you live like this now then it should be no real hardship.
For basic necessities you need to eat, heat and light your home and travel to work. From there I guess it's up to you how many 'luxuries' such as going out, hobbies, clothing, broadband/telephone, Sky TV plans you add. Essentially you can afford to live here, however any unexpected large costs will seriously rock you, don't have any rainy day funds.
Rent $400 to $500 per week
Heat & Light $30 to $50 per week depending on time of year
Allow $100 to $130 per month for phones and internet
Weekly groceries $140 to $180 per week
Around $80 to 100 per month for car and house contents insurance
Petrol obviously depends how far you drive to and from work, I average around $30 per week driving 125 kms per week
So far we've spent about $775 of your $989 take home pay and you start to notice that your weekly income doesn't go far and you will not have very much left at the end of each week to spend frivolously at the shops, go on holidays or indeed save for replacing major household items. If you live like this now then it should be no real hardship.
Jul 30th 2010, 1:20 pm
#28
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Joined: Nov 2009
Location: Auckland
Posts: 617
Re: Can we afford to move? Please Help!
Can I ask how you worked this out as I've been trying to work out what my take home wage will be after tax?
Jul 30th 2010, 1:52 pm
#29
Forum Regular
Joined: Jun 2010
Location: Kapiti Coast
Posts: 297
Re: Can we afford to move? Please Help!
This should help
http://www.salaries.co.nz/a/salary-tax-calculator/
If you got a student loan from UK, dont click on student loan as that is for NZ based loans only
We have to sort UK loans out seperately
Jul 30th 2010, 2:03 pm
#30
BE Enthusiast
Joined: Nov 2009
Location: Auckland
Posts: 617
Re: Can we afford to move? Please Help!
This should help
http://www.salaries.co.nz/a/salary-tax-calculator/
http://www.salaries.co.nz/a/salary-tax-calculator/