# Cost of living in NZ



## JP123

Hi all,

My wife, 3 kids (9, 6 & 4 yo) and I are planning on coming over to NZ to live and work permanently 

If we were on our own we would just up and go, but as we want to make this move permanent and have the 3 little ones we need to be more careful and get it right.

So we have carried out some initial costings (after reading a lot of threads on here!) but really could do with some help from this forum to check to see whether what we are thinking is based in any sort of reality!

Working on the following assumptions:
1. I will be on a skilled work visa (I work in IT)
2. I expect to end up working in Auckland
3. We expect to live further North on North Island and drive down Route 1 as well as work from 
home. Orewa seems about 45 minutes drive North and would be the maximum drive?
4. I would prefer if we could cover the core costs on my wage alone and then my wife's wage would 
go towards holidays and other things similar such as doctors vists.
5. My wife will not be on a skilled work visa
6. I am planning on a wage of $120,000 per year.
From another post response: $120k will give 3193 per fortnight net (take home) after deductions 
of income tax (1174), ACC contribution (64)and 4% Kiwisaver (185).
7. We will be bringing assets of around $500k with us.
8. We have estimated the sized of the mortgage based on a $500K deposit with a $200K mortgage.
9. We have estimated that $700K is enough for a 4 bed house with a garden

So the costs we have so far are:
Area	 Sub Area $NZ Cost Monthly
House Mortgage @ $200,000 (over 10 years)	$2,025
Council Tax (inc water & rubbish) $ 167
Electric $ 200
Phone (Landline) $ 50
Broadband $ 70
Food $1,800
Buildings & Contents $ 50

Personal Mobile 1 $ 60
Mobile 2 $ 60
Going out $ 200
Health insurance $ 100
Pension	(taken from gross salary?) $ 0


Cars (x2) MOT (paid yearly bit cost broken down) $ 8
2 average Tax (costed as above) $ 16
family cars Services and Parts	
Insurance $ 84
Breakdown Cover (both cars)	
Diesel $ 60

Total monthly costs: $5,069
Total monthly income: $6,386
Theoretical total monthly left over: $1,317

I hope the formatting above holds in the post!

We know there will be adhoc charges for things like doctors visits etc but have we got this in the right ballpark? Are we missing anything obvious?

Any help or guidance would be appreciated. We really want this but have to get it right for the kids..

Thanks in advance


----------



## escapedtonz

JP123 said:


> 1. I will be on a skilled work visa (I work in IT)
> 2. I expect to end up working in Auckland
> 3. We expect to live further North on North Island and drive down Route 1 as well as work from
> home. Orewa seems about 45 minutes drive North and would be the maximum drive?
> 4. I would prefer if we could cover the core costs on my wage alone and then my wife's wage would
> go towards holidays and other things similar such as doctors vists.
> 5. My wife will not be on a skilled work visa
> 6. I am planning on a wage of $120,000 per year.
> From another post response: $120k will give 3193 per fortnight net (take home) after deductions
> of income tax (1174), ACC contribution (64)and 4% Kiwisaver (185).
> 7. We will be bringing assets of around $500k with us.
> 8. We have estimated the sized of the mortgage based on a $500K deposit with a $200K mortgage.
> 9. We have estimated that $700K is enough for a 4 bed house with a garden
> 
> So the costs we have so far are:
> Area Sub Area $NZ Cost Monthly
> House Mortgage @ $200,000 (over 10 years)	$2,025
> Ignoring the mortgage issue. You'd probably be min $2052 per fortnight - all depends on interest rate you can get - New migrant, zero credit history (overseas history doesn't carry over), higher risk for the NZ bank, the rules are different here and affordability is an important factor. The NZ bank will probably refuse to give you a mortgage until they can see a listed history of your fortnightly income and spending habits.
> Council Tax (inc water & rubbish) $ 167
> There is no Council Tax in NZ. You will have to pay rates on any land and/or property that you own. The council will maintain a value on it and you will pay a % of the value in council rates. This can be paid monthly, but only once you are in the system. The first year you'll have to pay it in 2 x lump sums. In general, for a $850k property you'll be paying around $3k a year for the rates.
> Rubbish collection is an extra charge. You can either pre-purchase the bin bags from a local supermarket for maybe $3 each or pay for a wheelie bin/recycle bin emptied weekly or fortnightly. That'll cost around $400 per year
> Electric $ 200
> About right on average. Family of 5 over winter I'd say $300-$350 per month and over summer it doesn't really go down if you have a heat pump and using it for air con.
> Phone (Landline) $ 50
> Ditch the landline. Nobody has a phone. Use the mobile.
> Broadband $ 70
> I'd say at least $90 for unlimited data....you'll need it.
> Food $1,800
> Totally personal to you. Do an online shop using www.countdown.co.nz and/or www.newworld.co.nz. For a family of 5 I think you'll spend more, at least for the first 12 months till you settle in to Kiwi groceries.
> Buildings & Contents $ 50
> We pay $75 a fortnight for Buildings & contents through Tower Insurance
> Personal Mobile 1 $ 60
> Mobile 2 $ 60
> That's way too much for a mobile per month. We pay $16 each per 4 weeks with Skinny mobile.
> Going out $ 200
> Ha ha! That made me laugh
> So you're just going out for a main, pudding, a drink each, Uber home and the babysitter once a month!!!
> If we just go to the local pub with friends 10 mins away for dinner and a few beers say 4 hrs we spend $200 :tongue1:
> Health insurance $ 100
> I'd say you'll need to be spending more than that for a family plan that'll cover you all - even just basics. you may be lucky and get a health plan through your employer.
> Pension	(taken from gross salary?) $ 0
> You will pay your chosen % out of salary in to Kiwisaver. Your employer will do this on your behalf. Your employer will also match your contribution up to 4%. This is not a pension. It is a savings fund managed through a government scheme by one of the many providers and is intended for your retirement years. At NRA which is currently 65 you can gain access to that money and do with it whatever you please. Read up on kiwisaver. You do get some incentives each year if you invest the minimum amount.
> 
> Cars (x2) MOT (paid yearly bit cost broken down) $ 8
> 2 average Tax (costed as above) $ 16
> family cars Services and Parts
> Insurance $ 84
> Breakdown Cover (both cars)
> Diesel $ 60
> Where are these vehicles coming from - Are you importing them or buying here ? If you are importing them then you will have to pay all the fees to do that which'll be at least 2 grand per car (pounds).
> If you are buying here then they eat away at the $500k.
> Annual WOF (like UK MOT) is around $50 each. Rego (like UK road tax) is pretty cheap at approx $140 petrol or $180 diesel per year. You'd be wise to insure both cars for mechanical breakdown which will cover parts/labour for mechanical failures. They'll be around $500 each per year. Insurance will cost around $20 per fortnight for each car. Breakdown cover - i.e. roadside breakdown is usually part of the insurance and costs an extra $3 or $4 per fortnight. If you run a diesel you must also pre-purchase RUC's in blocks of 1000 KM's which are $74 per 1000 KM's. This is because diesel isn't taxed at the pump like other fuels.
> 
> 
> Total monthly costs: $5,069
> Total monthly income: $6,386
> Theoretical total monthly left over: $1,317
> 
> I hope the formatting above holds in the post!
> 
> We know there will be adhoc charges for things like doctors visits etc but have we got this in the right ballpark? Are we missing anything obvious?
> A doctors visit will cost you anything from $40 to $100 each consultation. All depends on visa status and if you have health insurance. First time you go you'll have to have a new patient medical at around $150.
> The dentist is really expensive. $100 for a check up. $400 per filling. $8000 for braces for a child.
> Also got to mention childcare for kids not at school. For the ones at school, schools here aren't completely free, even the state schools. What about before and after school clubs. They all cost money.
> 
> Any help or guidance would be appreciated. We really want this but have to get it right for the kids..
> 
> Thanks in advance


Hi and welcome to the forum,

Wow, huge post for a newbie 

Ok, lets go through it.........

1. A skilled work visa is a temporary class of visa but once you get a skilled job offer it is probably the least stressful way to get a visa quickly that'll allow you to get over here and working. With a salary of what you are expecting this should also allow your partner to be approved a partnership based work visa and the kids dependent/student visas.
2. Ok but it isn't the only place that needs IT workers. I'd advise you not to affix yourself on a place. What you need is a job offer, irrespective of where that will be as that'll get you here and get you working and earning the very important NZ work experience. You can move elsewhere later if it isn't the dream location or job. all I'd say is be open to anywhere.
3. If you did get a skilled job in Auckland then yes Orewa is a really nice place to live. I really like it there and visit often when we are up in Aucks as we have friends living out at Gulf Harbour. The traffic and commute in to Auckland from the North is still absolute crap - depends what time you need to be in work. I'd say 45 mins commute from Orewa will be the odd occasion good day.
4. Ok. You need to be earning as much as possible for Auckland living with 3 kids. I'd say $120k as a real rock bottom limit. You'll not be living a flash existence on that without the Mrs working part-time. 
5. Nope. She'll be on a temporary work visa (same duration as yours) via the Family Stream and more specifically Partnership, so you will have to prove your partnership. Research how you do that as INZ want minimum 12 months evidence of living under the same roof.
6. Yes you are correct with those figures.
7. Ok. That's good. You'll need money to set yourselves up. You will not be using all that cash for buying a home so don't count on a $500k deposit on a mortgage. You really need to keep your eye on the exchange rate. A small change could have a huge impact on the money you have to transfer over. You'll spend some of it on stuff to get yourselves in a position of comfort - I'd say $40k maybe ? You may now be saying........nah that's not gonna happen, but it will. You'll need to pay for the rental bond up front for the accommodation you are renting and maybe (like we did) you'll pay for insurances, power bill and other (what would normally be monthly expenses) upfront in full for the first year.
8. Ok. You do know that you cannot get a mortgage unless you are a Resident so you'll have to be renting for at least a couple years!!! See comments in red in your original post.
9.  Would be nice. I'd say minimum $850k and that'd be a brand new shoebox inside a slightly larger shoebox section of land in deepest suburbia. See comments in red in your original post.


----------



## JP123

escapedtonz said:


> Hi and welcome to the forum,
> 
> Wow, huge post for a newbie
> 
> Ok, lets go through it.........
> 
> 1. A skilled work visa is a temporary class of visa but once you get a skilled job offer it is probably the least stressful way to get a visa quickly that'll allow you to get over here and working. With a salary of what you are expecting this should also allow your partner to be approved a partnership based work visa and the kids dependent/student visas.
> 2. Ok but it isn't the only place that needs IT workers. I'd advise you not to affix yourself on a place. What you need is a job offer, irrespective of where that will be as that'll get you here and get you working and earning the very important NZ work experience. You can move elsewhere later if it isn't the dream location or job. all I'd say is be open to anywhere.
> 3. If you did get a skilled job in Auckland then yes Orewa is a really nice place to live. I really like it there and visit often when we are up in Aucks as we have friends living out at Gulf Harbour. The traffic and commute in to Auckland from the North is still absolute crap - depends what time you need to be in work. I'd say 45 mins commute from Orewa will be the odd occasion good day.
> 4. Ok. You need to be earning as much as possible for Auckland living with 3 kids. I'd say $120k as a real rock bottom limit. You'll not be living a flash existence on that without the Mrs working part-time.
> 5. Nope. She'll be on a temporary work visa (same duration as yours) via the Family Stream and more specifically Partnership, so you will have to prove your partnership. Research how you do that as INZ want minimum 12 months evidence of living under the same roof.
> 6. Yes you are correct with those figures.
> 7. Ok. That's good. You'll need money to set yourselves up. You will not be using all that cash for buying a home so don't count on a $500k deposit on a mortgage. You really need to keep your eye on the exchange rate. A small change could have a huge impact on the money you have to transfer over. You'll spend some of it on stuff to get yourselves in a position of comfort - I'd say $40k maybe ? You may now be saying........nah that's not gonna happen, but it will. You'll need to pay for the rental bond up front for the accommodation you are renting and maybe (like we did) you'll pay for insurances, power bill and other (what would normally be monthly expenses) upfront in full for the first year.
> 8. Ok. You do know that you cannot get a mortgage unless you are a Resident so you'll have to be renting for at least a couple years!!! See comments in red in your original post.
> 9.  Would be nice. I'd say minimum $850k and that'd be a brand new shoebox inside a slightly larger shoebox section of land in deepest suburbia. See comments in red in your original post.


Great detailed response, thanks really appreciate it.

We thought NZ would be expensive through researching but there is a lot to think about there.

Thinking will need a salary around $200,000 in order to be 'comfortable' to cover all of the costs.

Will go back and do some more number crunching...


----------



## JP123

*Thanks*

Great detailed response, thanks really appreciate it.

We thought NZ would be expensive through researching but there is a lot to think about there.

Thinking will need a salary around $200,000 in order to be 'comfortable' to cover all of the costs 

Will go and do some more number crunching..


----------



## TobiasTohill

Hi JP123, 
Did you make it over? I would say your numbers looked right. Generous for food, realistic generally. Just note that manufactured good are higher in NZ due to importing distances and small size of market, limited competition. Note that mortgage rates may also be lifting over next few years. And I see you’ve included 4% for Kiwi saver, but that’s only payable once you’re in New Zealand residence visa holder. You can put that 4% in town alternative savings or pension fund through a private provider instead if you wish. Simplicity and Kingfisher are recommended. 
In NZ the average household income is around $120,000 a year, so you certainly will have enough income to live on. If your wife is planning on working at all then you’re going to have enough to save as well. We are based in Hamilton and live a good life on far less than $120,000 a year.
Looking outside of Auckland is a good idea if you want to escape city life. If you like living in a vibrant city, then I recommend Auckland or Wellington. For Auckland, the North Shore is great, or look at living in Central Auckland. Watching out for some of the suburbs south and west, they can be pretty frustrating to live in because it’s a large sprawling city with bad traffic and poor public transportation services still. 
IT salaries are best in Wellington, good in Auckland, but also pretty good in Hamilton and Tauranga and even some of the other regions.


----------



## bipolarbob

hi,

so i have a offer from a engineering company in auckland to work there. 
its for nz$136k a year and $19k vehicle allowance.
we are a family of 4 - missus and 2 young kids (aged 3 and 1). 

We have looked and looked and found wildly differing cost of livings everywhere. 

is $136 enough to live on? not expecting a mansion/big car/living in luxury over there as i dont do it over here. just expect a decent standard of living...

and season tickets to the warriors games!!

any advice? im expecting the official offer this friday 26th august.


----------



## Kingdragonfly

You won't get rich, but it's a better than usual offer. Your salary would be in the range of many other highly trained people. $170,00 is the most any professional salary, for comparison.

Honestly I don't like Auckland, as it's not very "livable." However the "Economist Intelligence" rated it as the most livable large city. But they had this comment: "Other cities falling was why Auckland was top last time. Without Covid, it would likely be top 10, but not number one,” 

I think it's similar to Los Angeles; expensive, soul less, with horrible commutes. However it's the city with the most jobs available.

I'd strongly advise looking at where your firm is located, and then looking at it school's decile rating. While many would disagree, decile 10 is usually a good indication of a good neighborhood.

There's a good reason why many billionaires own "bolt-holes" in New Zealand. It's extremely stable, with low violent crime rates, better then usual social policies, moderate climate, and will likely weather climate change better than most countries.

If you could get a job anywhere other than Auckland, in my opinion, would likely be happier.


----------



## bipolarbob

Kingdragonfly said:


> You won't get rich, but it's a better than usual offer. Your salary would be in the range of many other highly trained people. $170,00 is the most any professional salary, for comparison.
> 
> Honestly I don't like Auckland, as it's not very "livable." However the "Economist Intelligence" rated it as the most livable large city. But they had this comment: "Other cities falling was why Auckland was top last time. Without Covid, it would likely be top 10, but not number one,”
> 
> I think it's similar to Los Angeles; expensive, soul less, with horrible commutes. However it's the city with the most jobs available.
> 
> I'd strongly advise looking at where your firm is located, and then looking at it school's decile rating. While many would disagree, decile 10 is usually a good indication of a good neighborhood.
> 
> There's a good reason why many billionaires own "bolt-holes" in New Zealand. It's extremely stable, with low violent crime rates, better then usual social policies, moderate climate, and will likely weather climate change better than most countries.
> 
> If you could get a job anywhere other than Auckland, in my opinion, would likely be happier.



thanks for the reply. 

ill be working in the centre of Auckland on a major transportation upgrade. We intend to live outside Auckland, somewhere and me commute. 
Honestly I'm not rich over here in England so don't intend to be rich over in NZ. Just want a good life and to provide for my family.

I do have a job offer for somewhere else and we are considering it.

thanks

bob


----------



## Kingdragonfly

I'm not an Auckland expert, but I'd recommend north instead of south.

There's an express bus service to the North. To reduce stress due to commuting, I'd recommend it.

Timetables

https://at.govt.nz/media/1989455/northern-guide-june-2022.pdf


----------

