Help and advice needed from those experienced in NZ life
 

I've done a few basic calculations and I was wondering if anyone could let me me know whether or not I'm in the right ball park.

Annual earnings $50,000 / 12 = Monthly pay $4166 (gross)
Property Value = £200,000
Deposit = $40,000
Mortgage = $160,000
Interest = 8%
Loan length = 25y
Monthly repayment = $1234.91
Monthly pay-mortgage repayment = $2931.09

I understand I have not included tax (if anyone wants to help me out on this I would welcome it) but is $2931.09 a figure a family of 4 can live off in NZ? Would I be able to afford to run a car and do a decent monthly shop, or is this amount not enough to support a family?

Any advice would be greatly received.

Re: Help and advice needed from those experienced in NZ life
 

Do you mean an NZ property value of $200K please?

If so, what area of NZ.

Re: Help and advice needed from those experienced in NZ life
 

Hi, yes $200k NZ dollars. I'm not sure which area, It depends on where I find work. I have been scanning NZ property generally, and I think that's probably the price bracket I'm looking at. I know its very vague but I'm just in the early stages of my property research.

Re: Help and advice needed from those experienced in NZ life
 

Your mortgage repayments could be lower as you can make repayments
fortnightly which reduces the amount of interest on the loan by quite a lot.


If you find a place for $200k there will be a reason why its that price
IT will either be tiny, poor quality, in the middle of nowhere (literally) or
in an area you you wouldnt want to live.
I've heard of houses next to mongrel mod party houses selling for more than that.

I can only speak for the areas i know about so i could and hope i am wrong
Have a look on trade me to get an idea of whats available for $200k.
just select all regions and it will seach the whole country

Re: Help and advice needed from those experienced in NZ life
 

Is $300k is the OK price range in NZ? With a $40k deposit that would leave me with a $260k mortgage and repayments of $2006 per month. That would leave £2160 per month for a family of 4 to live off. Would that be enough for the average family of 4 in NZ?

Re: Help and advice needed from those experienced in NZ life
 

Kate earns around $63k plus a year and she clears $3864 per 4 weeks. You do not appear to have taken off your NZ tax burden from your figures. TBH I think on a salary of around $50k you will struggle for a family of 4 servicing a $260k mortgage. What does anyone else think?

Re: Help and advice needed from those experienced in NZ life
 

On a $50000 income, in 2009-10 you will pay income tax as follows

$14000 @ 12.5% = 1750

$34000 @ 21% = 7140

2000 @ 33% = 660

Income tax total = 9550

ACC Levy 1.7% of total income = 850

Total Deductions $10400

Net Income 50000 - 10400 = 39600 or $3300 per month


Hope this helps

Please note -- These numbers are based on my understanding of the NZ tax system and are not intended to be taken as definitive advice

Re: Help and advice needed from those experienced in NZ life
 

Yes, but you've forgotten Working For Families. If his two children are under 12, net income will be

$39,600 after income tax
PLUS
$8060 WFF

Total $47,660 NET INCOME ($3,971.66 per month)

Re: Help and advice needed from those experienced in NZ life
 

You're quite right of course, thanks for that.

I think its still pretty thin to support a $260k mortgage and 4 people though

Re: Help and advice needed from those experienced in NZ life
 

with the houses you have to remember that we all have different standards.
Some on here may think my place is a palace while others my think its a hole.
heres what $250k might get you in hamilton
some subburbs are not very nice (fairfield,nawton initially spring to mind) but
again its down to personal preferances.

http://www.trademe.co.nz/Browse/Cate...0000&49=250000

personally i dont agree with migrants coming in to any country and claiming benefits straight away.
I know sometimes shit happens after a move but to go to a place knowing you will
be reliant on benefits and handouts is not on.
If you cant afford to support yourself and your family in the country you want to
move to you shouldnt go.

Re: Help and advice needed from those experienced in NZ life
 

A selection of what's available in Waimakariri (commutable to Christchurch) up to $250k

http://www.trademe.co.nz/browse/cate...rder=price_asc

Re: Help and advice needed from those experienced in NZ life
 

We've lived off OH's 72k salary since end of June, with a 230k mortgage & i have to say it has been very tough.

Based on that $3971 figure with a 260k mortgage I would say you would struggle big time!!

Add to that $2006 our compulsory bill totals for the month:-
$750 - Electricity, Phone, Internet, TV, Insurances & Council Tax.
$300 Petrol

That would leave you with $228 a week for shopping & anything else!!!!!

Not Good:thumbdown:

Re: Help and advice needed from those experienced in NZ life
 

wow, thanks for all the advice. :thumbup:
I'm going to go through it all in detail and I'll post an update later.

Re: Help and advice needed from those experienced in NZ life
 

I dont earn as much and dont have as much outgoings.... BUT 250/300 is roughly what we have to play with...

Not great but it only gets better...

Re: Help and advice needed from those experienced in NZ life
 

That's just for 2 of you though, isn't it?

Bit tougher for family of 4. Also you have to allow for school fees which seem to appear all year round, think ours have come to about $600 not including the donation:eek: + uniforms, books etc, etc..
Also, Doctors, Dentist, Opticians, Car Tax, Wof, Heating fuel etc......:blink:

Re: Help and advice needed from those experienced in NZ life
 

True only 2 of us... Should have read ur post better...

Anyway - we agree it'shard!!

Re: Help and advice needed from those experienced in NZ life
 

I shouldn't have mentioned the school fees!!!
Just had an extra bill come through today for a metal/art project my son did, which consists of a 100x100x25mm piece of wood, 3 setscrews, 4 short lengths of threaded studding & 3 short lengths of round bar.
The result is good, but they want $50 to pay for the materials:ohmy:

Will take a piccy of the item when I can find my camera, I think it's great!!!

Re: Help and advice needed from those experienced in NZ life
 

Going off topic a bit but a friend of mine just had to fork out $110 for a school trip. They said it wasn't compulsory to go, but it was really as it was a class school field trip.

Re: Help and advice needed from those experienced in NZ life
 

WFF not a definite......we do not get it as we have some money in the bank. I am a nurse earning $38k ( work 32 hrs per week ) and my OH has no job,but we still do not qualify as we have savings......which are dwindling fast with 2 boys aged 9 and 7.:thumbdown:

Phyl x

Re: Help and advice needed from those experienced in NZ life
 

Thought it was totally income based, it doesn't take savings into account on any of the calculators or literature.
There are some on here who have substantial savings & still get it.

Re: Help and advice needed from those experienced in NZ life
 

Think I have to agree with you there. I've been right through the website and cant find anything about WFF being dependent on savings.

If it is, they keep it REALLY quiet. Anyone know for certain?

Re: Help and advice needed from those experienced in NZ life
 

I'm 99.99% sure that WFF is not dependent on savings. weejie, where did you get this information??

Note that you have to 'register' for WFF:

http://www.ird.govt.nz/online-servic...fftc-2010.html

If I was you, I'd phone them up ASAP to explain my situation and clarify things - if you are eligible for WFF it may be possible, if you've been misinformed and have missed WFF payments because of it for instance, for you to get some or all of the payments you've missed.

When you register for WFF, you can opt to receive it weekly, fortnightly, or all in one lump sum at the end of the tax year. So certainly if you're entitled to it, once you register for it you could start receiving it in your bank account immediately.

(By my calculations, on a $38K salary and with 2 children under 12, you're entitled to............ $201 PER WEEK!! That's $871 per month, $10,452 per year. That's a hell of a lot of money to be missing out on. Best you get on the phone right now!! WFF calculator here: https://interact2.ird.govt.nz/forms/famcalc2009/ )

EDIT - I've just seen that you are only recently arrived in NZ. According to the WFF ( http://www.ird.govt.nz/wff-tax-credi...s/eligibility/ ):

From the wording, one might think that you are eligible based on the second requirement (you ARE caring for children who are both present and 'resident' in NZ, right?). But it seems a rather odd coupling of 'either/or' requirements, so best to confirm with them on this point....

Re: Help and advice needed from those experienced in NZ life
 

i have to say that at 50K a year.. and $260K loan.. you will struggle.. and hard.. life will be at a bare min.

its do able in the short term.. but not going to be much fun if thats your life
i suspect you will have to rent.. might not be much difference in the rent v loan.. but the standard of housing will be much better.

I must admit.. i struggle to work out how the average paid kiwi family who is buying a house now ( not the ones who have hit the housing escalator) survive.

We are a family of 4 ( soon to be 5!) and the family income is more than double that and while we are nice and happy.. we're still not in the traveling by business class style of living ( couldnt bring myself to pay the price!:eek:)