Living in New Zealand

Like Australia, living in New Zealand is becoming a popular option amongst expats around the world due to a variety of reasons. For many years New Zealand has been overshadowed by its “neighbour” Australia (despite the fact that Australia is over 1250 miles away from New Zealand). It is these types of misinformation which have impacted upon the reputation and image of New Zealand for some time although like its “neighbour” it has begun to emerge from the shadows.

So what exactly does New Zealand have to offer and what can you expect if you’re looking to relocate to this island country?

Climate

New Zealand itself consists of two main islands, the North and the South Islands, together with a number of smaller islands under the control of the New Zealand government. The total land mass of the country is just short of 104,000 mi.² which is slightly less than the size of Italy or Japan and a little more than the land mass of the UK. However, New Zealand is a country (actually part of an ancient continent known as Zealandia) with a lot to offer and a large variety of weather conditions.

Due to the various mountains in New Zealand the maximum and minimum temperatures can vary between 42.4°C and -21.6°C. This gives a perfect reflection of the enormous variety in New Zealand with the West Coast of the southern island extremely wet, while inland on the northern Island there are semi arid areas with snowfall on the mountainous regions. In many ways, again, in common with various popular expat hotspots, the array of climates and different geographic outlays available in New Zealand appear to be some of the major attractions for many people.

What can you expect from the weather in New Zealand? Check out the latest discussions in the New Zealand forum :-

“I’m new to the forum. Been in NZ for over 5 years and as you can see from my title, I live in Blenheim.
I’ve become quite homesick lately – I always seem to this time of year, is it the same with you? Blenheim is not exactly Metropolis – great in summer but many locals are in bed by 9 in the winter.”

Economy

To many people the first thing which springs to mind when you mention the New Zealand economy is agriculture when in reality the farming sector is around 4.3% of GDP, manufacturing and construction around 27% and by far and away the largest contributor to the New Zealand economy is now the services sector at over 60%. However, that is not to say that farming is not a major element of the New Zealand economy as it constitutes a large portion of the country’s exports to countries all over the world.

In general there have been great improvements in the New Zealand economy over the last decade with gross domestic product now estimated at around $27,000 per capita, a figure which compares favourably with countries in southern Europe. Like Australia, the New Zealand economy has performed relatively well during the worldwide economic downturn and is one of the stronger economies at this point in time. It is an economy which has fared very well across a number of economic reviews including the human development index, the worldwide quality of life review and overall prosperity within the country.

Tourism is also a growing element of the New Zealand economy and is expected to support over 200,000 full-time jobs in the future which equates to around 9.9% of the New Zealand workforce. The number of visitors to New Zealand is expected to increase at a rate of 4% per annum up until 2013. This is a useful reflection of the underlying strength of the New Zealand economy which appears to be perfectly positioned for the future.

Employment

As we mentioned above, the New Zealand economy and consequently the New Zealand employment market is dominated by the services sector. As you would expect, during the worldwide recession there was a contraction in this particular area and unemployment grew in line with many other developed countries around the world. However, over the last few weeks we have seen an increase in confidence in the New Zealand services sector and while often this can be focused on specific areas, rather than the country as a whole, it does look as though we are seeing the beginning of an improvement in the overall New Zealand services sector and employment market.

More and more people are now realising their dream of living in New Zealand with the authorities adopting a fairly open policy on immigration. It is expected that the population of New Zealand will increase by 1% annually for the foreseeable future, something which has attracted expats from areas such as the United Kingdom, Ireland, China, Korea, Taiwan, Japan and Hong Kong to name but a few. With very few barriers to entry for those looking to move to New Zealand to begin a new life, it is expected that we will see more competition in the employment market although with the economy well positioned for the future, there are hopes that these additional workplaces should be supported fairly easily.

There are many questions about work visas and employment in general which are being discussed in the New Zealand forum :-

“I have one query , i know that Australian PR dont require visa to enter NZ
but do they require any visa or work permit to work in NZ?”

Tax

Taxation for those living in New Zealand is obviously an issue which needs to be addressed sooner rather than later because you need to know exactly what your liabilities will be and your “net income”. Interestingly, unlike many other developed countries, there is no tax free band for income derived in New Zealand with the rate of income tax varying from 12.5% on the first $14,000 earned to 38% on earnings over $70,000, with the potential for a higher income tax rate of 45% for those earning substantial amounts.

Income is taxed at source although the country does have double tax agreements with the likes of the United Kingdom, Australia, Spain, Sweden, Germany, France and many other countries around the world to ensure that those earning income in New Zealand, and not resident, are not taxed twice on the same income. VAT in New Zealand is 12.5%, corporation tax has fallen to 30% and there is no capital gains tax liability, unlike countries such as the UK.

You need to plan ahead to make sure you have enough funds available to live in New Zealand – why not check out the New Zealand forum for more details?

“Hi all, its great to read about people who are going through or have been through the same emotions as my family are going through at the moment. We are due to fly out to NZ in January and have suddenly started to feel really worried.
Is anyone able to tell us how easy it is to LIVE on an average wage as a maintenance fitter in NZ. We don’t expect to live a life of luxury, just be able to pay the bills, raise our two children (12 and 9) and go out occasionally.
I read on another forum that unless you earn a large wage you will barely have enough to survive on.”

Cost of living

In general the cost of living in New Zealand is very reasonable to say the least because over the last decade we have seen salaries and incomes rise significantly ahead of the cost of general products, services and other cost of living factors. A great deal of the fresh produce in New Zealand is grown locally and therefore reasonably priced, the services industry has improved dramatically over the last decade and the cost of properties in New Zealand is also very reasonable.

While that is not to say that at some stage the cost of living will not catch up or even overtake the increase in salaries and income across New Zealand, at the moment those moving to New Zealand from the likes of the UK will see an increase in their “disposable income” due to the significant difference in the cost of living. To give an example of the cost of property and rents in New Zealand, on average you will pay the same price to rent a four-bedroom home in New Zealand than you would to rent a single bedroom apartment in the UK.

However, you do need to be aware of the differences in the cost of property, and potentially cost of living, between the more densely populated cities of New Zealand and the rural areas – although on the whole the cost of living in New Zealand will be a very welcome relief to those expats looking to relocate.

Check out the latest discussions on the cost of living in New Zealand in the forum :-

“Hello everyone. Myself and my family are thinking of emigrating to New Zealand so it is very early days in the process but would like to hear what people think of the cost of living out there as that is a big factor in us moving out there. Cost of diesel here currently £1.28 at some petrol stations!!!! Home sickness is also a big concern although I appreciate something most people must go through so any suggestions, experiences I would love to hear about. Any stories and experiences of emigrating to NZ in general would be very helpful. Many thanks in advance everyone.”

Property Prices

As we touched on above, the cost of property in New Zealand is relatively cheap compared to the likes of the UK and the example given above is a perfect illustration. However, while New Zealand is a relatively small country, slightly bigger than the UK, the influx of immigrants to the country will provide an impetus and demand for property now and into the future. Even though the New Zealand property market is relatively undeveloped in some areas of the country, the more densely populated cities are obviously well catered for on the property and rental front. Demand from expats and the local population will obviously grow in the economic boom times, a factor which needs to be taken into consideration.

New Zealand, much like Australia, is a country which offers vast areas of space and a very wide range of property types. So whether you are looking to rent or buy a property in the more highly populated cities of New Zealand or perhaps you are looking for the quiet life in the suburbs and the countryside, there will be something for you.

House prices in New Zealand can vary wildly – have you done your homework?

“Looking to buy a 4 bedroom house when we arrive, any advice on areas where we may get better value for money,thank you.”

Expat communities

As indicated above, yet again there appears to be a strong UK contingent living in New Zealand and as such we have seen significant expat communities evolve. There are obviously close connections between New Zealand and the UK with regards to the Commonwealth and various events in the past which have seen an ever-growing number of UK expats consider living in New Zealand full time.

This constant stream of expats looking to move to New Zealand is set to continue with the authorities operating a fairly open immigration policy and looking to increase the population by around 1% per annum. Obviously, those who can offer employment skills which are perhaps thin on the ground in New Zealand will fare better in the employment market but overall the New Zealand economy is well positioned for the future. While there are very many similarities between New Zealand and Australia they do differ on a number of points and you need to do your homework before looking to relocate.

If you need advice about moving to New Zealand there are many forum members on hand to help :-

“We have decided that the area we want to aim for is Tauranga/Mt Maunganui. My partner is really keen on moving to an area that is pretty quiet and low-key, with space and a bit of tranquility (his ieda of a village), so obviously central parts of Tauranga are off!!! Can anyone recommend areas that fill his criteria, but still are no more than a 30-40min journey into town, beaches etc???”

Transport network

The New Zealand transport network consists of a large bus sector, reliable train service and a number of state-of-the-art airports. As a consequence, it is fairly easy to travel from one end of New Zealand to the other, something which will obviously impact upon the attractions and prosperity of the New Zealand economy in the future. While it may be stretching the point a little to suggest that the New Zealand transport network is “cutting edge” the authorities have invested significant amounts of money over the years to update and continuously build on the basic transport network of years gone by.

Conclusion

As we suggested above, New Zealand is a country which has for many years been overshadowed by its “neighbour Australia” despite the fact that the two are very different and over 1200 miles apart. Heavily associated with the agricultural industry the New Zealand economy has changed significantly in recent times and is now dominated by the services sector although agriculture does play a major part in the economy and the export sector in particular.

Many people will be unaware of the size of New Zealand, although when you compare it to other European countries it is slightly larger than the UK although more sparsely populated. The North and the South Island’s are the main focal point of New Zealand although there are smaller islands dotted around which offer various attractions to expats. The progressive immigration policy, which will see the New Zealand population increase by around 1% a year, is obviously seen as ” friendly” to the expat community and will indeed attract significant interest in the years to come.

Even though many people are well aware of New Zealand, and perhaps even its location in the world, it has for some time remained in the shadows with regards to the international scene. However, the authorities have managed the New Zealand economy very well and while the services sector continues to grow there is also an increasing influence from the tourism industry. Often seen as a “quiet country” the New Zealand of today is very different to the New Zealand of 10 years ago and many people would be surprised to learn the degree to which it has changed.

So in summary, New Zealand offers a variety of attractions which include the more heavily populated cities which attract the greater employment opportunities to be more sparsely populated rural areas and suburbs which offer a different type of lifestyle. The cost of living is relatively cheap on the whole, although it does vary from area to area depending upon the type of lifestyle you are looking for, and the environment you are looking to relocate to.

Many people expect the number of expats visiting New Zealand to increase well into the foreseeable future with an economy which is growing, a worldwide reputation which has been enhanced over recent years and a very warm welcome offered to those looking at living in New Zealand.

Related Posts

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4. Cost of Living in New Zealand
5. Prospects of employment in New Zealand

Tagged as: Living in New Zealand