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Old 05-29-2014, 12:35 PM
 
Location: Michigan
23 posts, read 48,708 times
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Hello

I would very much like to move to New Zealand, South Island preferably. I signed up for the register your interest website, and my skill set (Linux Admin) is listed in the permanent needed skills section. Currently, I live in the US-US citizen. My question is, can anyone confirm the Cost of Living there? I was doing some preliminary research and even with most Linux admin jobs paying around the 70K$ NZD amount on Seek.com, when looking at rent/mortgage/food costs, how can you support a family of three on that salary? Can someone confirm if the cost of living really is that high and if not point me to some accurate websites?

Much Appreciated.
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Old 05-29-2014, 03:32 PM
 
Location: Aotearoa
100 posts, read 138,571 times
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Quote:
Originally Posted by Kroth View Post
Hello

I would very much like to move to New Zealand, South Island preferably. I signed up for the register your interest website, and my skill set (Linux Admin) is listed in the permanent needed skills section. Currently, I live in the US-US citizen. My question is, can anyone confirm the Cost of Living there? I was doing some preliminary research and even with most Linux admin jobs paying around the 70K$ NZD amount on Seek.com, when looking at rent/mortgage/food costs, how can you support a family of three on that salary? Can someone confirm if the cost of living really is that high and if not point me to some accurate websites?

Much Appreciated.
You can certainly support a family of 3 on the salary, as most Kiwis do it with less. The question you need to ask is: Can I live how I want to live on $70k a year?

Depending on where you are coming from in the US, costs of just about everything will be higher. Auto Insurance is one exception (there is no personal liability in NZ, so auto insurance companies do not have to worry about million dollar payouts if you injure someone); car registration includes a levy to cover medical bills for you or anyone you injure (ACC levy)...add that to the cost of your auto insurance, and even that is no longer a bargain. Cars are cheaper in a sense: Driving a 10 year old Corolla is the norm. A 10 year old Corolla will cost more than in the US, but there is no need to have the latest and greatest anything. Petrol (gas) is just painful...

South Island? I assume you're looking at Christchurch? Christchurch is expensive as they had this earthquake a few years ago. What wasn't destroyed is being occupied by those who are working on the rebuild. Check out trademe.co.nz for typical rent costs (note that they will be weekly prices).

Unless you are coming from Hawaii, electricity will be two to three times more expensive than you are used to.

Food will be shocking at first, but you will eventually learn to shop like a Kiwi: Don't try to buy asparagus, except during asparagus season. Don't buy lamb until there's a huge lamb surplus (and a sale), then fill your freezer with lamb. Beer and liquor (which can't be bought at a supermarket) are expensive. Switch to wine. Countdown.co.nz has online shopping...it's the "mid-grade" supermarket; check there for prices.

Note GST (goods and services tax) is almost always included in posted prices. Tipping is not necessary anywhere. Restaurants are still expensive; you won't eat in them often.

Clothes and shoes are unbelievably expensive. Bring two years worth with you (they'll be in style by then). Hope for some visitors that can carry replenishments to you.

Furniture is ridiculous. Ikea is considered high quality in NZ...except there is currently no Ikea in NZ. There are companies that buy in Australia and ship to you; doing that is still cheaper than buying furniture locally.

One more thing: the kiwibuck is quite strong right now. This will make your $70k seem a little closer to whatever you currently make. Some imported items (like electronics) have gotten a little cheaper because of this, but if you're bringing money with you, now is not a great time to exchange it (or maybe it is...I keep reading that the greenback is on its way out). I like to refer to the Big Mac index. Calculate how long you have to work for a Big Mac now, then calculate how long you will have to work in NZ: Big Mac index - NZ dollar about right - Business - NZ Herald News

And even more one thing: You can make it on a lot less in NZ, if you don't try to recreate your life here. Live like a Kiwi: Buy used, don't heat your home, go sleep in a tent instead of a nice hotel. Walking (hiking) and the beach are free. Drinks on your deck with friends are cheaper than drinks in a pub.
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Old 05-29-2014, 05:56 PM
 
1,337 posts, read 1,946,879 times
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Quote:
Originally Posted by Kroth View Post
Hello

I would very much like to move to New Zealand, South Island preferably. I signed up for the register your interest website, and my skill set (Linux Admin) is listed in the permanent needed skills section. Currently, I live in the US-US citizen. My question is, can anyone confirm the Cost of Living there? I was doing some preliminary research and even with most Linux admin jobs paying around the 70K$ NZD amount on Seek.com, when looking at rent/mortgage/food costs, how can you support a family of three on that salary? Can someone confirm if the cost of living really is that high and if not point me to some accurate websites?

Much Appreciated.
As above depends on where in the South island you are referring to. Christchurch has become pretty expensive with house prices and renting due to a shortage of property and high demand caused by the aftermath of the Earthquakes, something like 8% of stock was deemed red zone uninhabitable with as many again marginal. Although the majority of houses have no or minor damage you can imagine what happens to house prices if you suddenly remove 8-15% of stock, if renting be prepared to compete against 20 other people showing up.

Dunedin is pretty cheap in comparison but job opportunities are less.

$70K salary paying full rent or a $300K+ Mortgage in CHCH with no other income would be doable but tight, where in Dunedin the formula would look a fair bit better.

If the US FED stops printing money its likely the $NZ will slip against the $US as will most similar currencies so one suspects the $NZ will slip if you are looking at brining money over.


Quote:
Originally Posted by 72andsunny View Post
And even more one thing: You can make it on a lot less in NZ, if you don't try to recreate your life here. Live like a Kiwi: Buy used, don't heat your home, go sleep in a tent instead of a nice hotel. Walking (hiking) and the beach are free. Drinks on your deck with friends are cheaper than drinks in a pub.

I heated my home in CHCH with two heat pumps and had double glazing, are you referring to 18 year old students in cheap housing living on the bones of their bums?. Load on the NZ electricity grid significantly increases over winter months and that's very provable, I think that's a bit of a myth I see posted in forums. Add to that smog isn't the best in CHCH over winter due to log burners in Winter and the city being in effectively a basin, so look out the window for further evidence of people heating their homes :P. Bars clubs usually look pretty busy on weekends throughout NZ, although pre-loading is common which is a cost and social thing.

Buying used is now considered trendy however never did it myself, I think there is a little bit of a perception at a certain age thing going on.
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Old 05-29-2014, 07:12 PM
 
Location: Aotearoa
100 posts, read 138,571 times
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Quote:
Originally Posted by Battleneter View Post
I heated my home in CHCH with two heat pumps and had double glazing, are you referring to 18 year old students in cheap housing living on the bones of their bums?. Load on the NZ electricity grid significantly increases over winter months and that's very provable, I think that's a bit of a myth I see posted in forums. Add to that smog isn't the best in CHCH over winter due to log burners in Winter and the city being in effectively a basin, so look out the window for further evidence of people heating their homes :P.
Are you Kiwi, Battleneter? The heating you have described is not what most Americans would consider comfortable. Where are your heat pumps placed? Do they heat your entire home? What is the temperature of your bedrooms at night? Is an electric blanket a necessity? The only truly comfortable homes I've been in (in winter) were new builds belonging to British and Canadian expats.

I would never have imagined owning a home without central heating (forced air). Few people have even heard of it NZ. I would have it installed, except the $10k plus cost would add almost nothing to the value of my home (no locals want "air blowing on them" all night).

I don't mean to sound like I'm disagreeing with you completely. There are modern, warm houses in NZ, and I hope this thread doesn't become completely about cold houses (which are probably represented enough elsewhere on the internet). The problem is the OP will be unable to afford one. The OP was asking financial questions, so we should probably stick to that. What would you say is the market rent for a warm, insulated, double glazed house like yours? (I'm assuming you're in Christchurch, but wherever would be good for a comparison).
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Old 05-29-2014, 07:34 PM
 
1,337 posts, read 1,946,879 times
Reputation: 855
Quote:
Originally Posted by 72andsunny View Post
Are you Kiwi, Battleneter? The heating you have described is not what most Americans would consider comfortable. Where are your heat pumps placed? Do they heat your entire home? What is the temperature of your bedrooms at night? Is an electric blanket a necessity? The only truly comfortable homes I've been in (in winter) were new builds belonging to British and Canadian expats.

I would never have imagined owning a home without central heating (forced air). Few people have even heard of it NZ. I would have it installed, except the $10k plus cost would add almost nothing to the value of my home (no locals want "air blowing on them" all night).

I don't mean to sound like I'm disagreeing with you completely. There are modern, warm houses in NZ, and I hope this thread doesn't become completely about cold houses (which are probably represented enough elsewhere on the internet). The OP was asking financial questions, so we should probably stick to that. What would you say is the market rent for a warm, insulated, double glazed house like yours? (I'm assuming you're in Christchurch, but wherever would be good for a comparison).
Yes I am a Kiwi and lived in CHCH, I appreciate central heating is far more common in the US, and yes 2 split 7.0 kW inverters were enough to heat a 230m2 house to around 21C which was comfortable for us. Newer houses that average around 200m2 tend to have central ducted heating and a minimum of double glazing is now regulation for many parts of NZ. For old housing Log burners are far more common in the South Island than say Auckland and you can see NZ energy consumption patterns here.

Electricity Demand | System Operator


Older NZ (and for tha matter Australia) housing is generally well below the size and standard of the US no argument, but you know you don't "have" to buy a old small 1950's state house death-trap, modern housing is very comparable
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Old 05-30-2014, 09:55 AM
 
Location: Michigan
23 posts, read 48,708 times
Reputation: 16
Thank's so much for the information, very helpful. I got an email for WorkHere today so I plan on registering for that. This helps incredibly with the information I am trying to put together to determine if us moving is the right decision. Yes Dunedain or ChristChurch, I'm not opposed to the North Island though, would largely contingent on where I got a job.

Last edited by Kroth; 05-30-2014 at 10:03 AM..
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Old 05-30-2014, 09:56 AM
 
Location: Michigan
23 posts, read 48,708 times
Reputation: 16
Quote:
Originally Posted by 72andsunny View Post
Are you Kiwi, Battleneter? The heating you have described is not what most Americans would consider comfortable. Where are your heat pumps placed? Do they heat your entire home? What is the temperature of your bedrooms at night? Is an electric blanket a necessity? The only truly comfortable homes I've been in (in winter) were new builds belonging to British and Canadian expats.

I would never have imagined owning a home without central heating (forced air). Few people have even heard of it NZ. I would have it installed, except the $10k plus cost would add almost nothing to the value of my home (no locals want "air blowing on them" all night).

I don't mean to sound like I'm disagreeing with you completely. There are modern, warm houses in NZ, and I hope this thread doesn't become completely about cold houses (which are probably represented enough elsewhere on the internet). The problem is the OP will be unable to afford one. The OP was asking financial questions, so we should probably stick to that. What would you say is the market rent for a warm, insulated, double glazed house like yours? (I'm assuming you're in Christchurch, but wherever would be good for a comparison).
I'm a little odd when it comes to the normal American standard, as in I like having my apt at 65 degrees at all times.
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Old 05-30-2014, 02:01 PM
 
Location: Aotearoa
100 posts, read 138,571 times
Reputation: 113
Quote:
Originally Posted by Kroth View Post
I'm a little odd when it comes to the normal American standard, as in I like having my apt at 65 degrees at all times.
Our goal with our first daughter was to always keep her bedroom above 18 degrees (64 F) which I believe is the WHO recommendation. I'm ecstatic when her thermometer reads above 15 (59 F) in the morning. Our electric bills approach $300 in the winter, and our primary heating source is wood based. If you do not have a well insulated home and an inexpensive heating source, it just can't be done. Bring a lot of money with you, because even in Dunedin it will be a stretch on your salary. Note: I am on the North Island, and in one of the warmer areas on the North Island...it still gets cold in the winter.

Here's an NZ Herald article: Bedroom temperatures can affect kid's lungs - study

I am not making this stuff up; take information from people who were born here for what it's worth. They were raised in these same houses, and are descended from Scotsmen who think it's warm here. New Zealand has one of the highest (highest?) rates of asthma in the world for a reason.
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Old 05-30-2014, 02:12 PM
 
Location: Top of the South, NZ
22,216 posts, read 21,652,265 times
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Quote:
Originally Posted by 72andsunny View Post
Our goal with our first daughter was to always keep her bedroom above 18 degrees (64 F) which I believe is the WHO recommendation. I'm ecstatic when her thermometer reads above 15 (59 F) in the morning. Our electric bills approach $300 in the winter, and our primary heating source is wood based. If you do not have a well insulated home and an inexpensive heating source, it just can't be done. Bring a lot of money with you, because even in Dunedin it will be a stretch on your salary. Note: I am on the North Island, and in one of the warmer areas on the North Island...it still gets cold in the winter.

Here's an NZ Herald article: Bedroom temperatures can affect kid's lungs - study

I am not making this stuff up; take information from people who were born here for what it's worth. They were raised in these same houses, and are descended from Scotsmen who think it's warm here. New Zealand has one of the highest (highest?) rates of asthma in the world for a reason.
Many people don't invest enough in making their (older) houses warmer.

There's always a way of making old houses warmer, and it can be done relatively cheaply.
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Old 05-30-2014, 03:05 PM
 
Location: Aotearoa
100 posts, read 138,571 times
Reputation: 113
Quote:
Originally Posted by Joe90 View Post
Many people don't invest enough in making their (older) houses warmer.

There's always a way of making old houses warmer, and it can be done relatively cheaply.
Depends on the house and depends on what you consider cheaply. A typical (sixties-ish) Kiwi house is sort of a rectangular box, built on piles (a raised foundation, sort of like short stilts). To an American eye, they might look like kit or manufactured homes. A house like that needs insulation (floor and ceiling)--pretty cheap, especially with government grants. In wall insulation is a novelty. Windows are probably not worth doing, the cost to payback just doesn't exist. A cheaper alternative is to have all the cracks around the windows and doors sealed. The home probably has an old wood burning fireplace. It's now non-compliant with new air quality regulations. Put in a new one (say $5k...maybe $700 off that paid with government money), or add a couple of heatpumps for about the same cost; that at least will give your place a little ventilation. Don't forget, none of these things are free (or even inexpensive to operate), unless you have a free wood supply, but even that comes at a huge cost.

If the house you are starting with is something other than that basic Kiwi design, modernising it quickly become an extravagance. Irregular floor plan: suddenly you need a multi room heatpump--that starts at $10k (and heat pumps are only supposed to last 10 years). Insulation in the floor becomes difficult if your house is actually built on a normal foundation. Beautiful bay windows to take advantage of the view? You'll have to get by with heavy curtains to keep the heat in.

Once again, I don't mean to sound like I'm disagreeing with everything you say. Anything can be modernized and made warm, but you're telling the OP he (she?) Has to buy a home and fix it up. That takes renting off the table.

OP: Buy all means move here. The adventure of living in a foreign country alone is worth it. Your income is enough to at least get by, and if you're outside Auckland, Wellington, or Christchurch, it will only be a mild struggle. But the struggle will be things like living in a home that is less than comfortable, actually having to consider what you buy in a supermarket, and saving for retirement.
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