Affording the Cost of Living in New Zealand: A Personal Experience
In today's globalized world, the cost of living varies greatly from place to place, and New Zealand is no exception. This article delves into the personal journey of an expatriate family and discusses the challenges and strategies for affording the cost of living in this beautiful yet expensive nation.
Introduction to the Cost of Living in New Zealand
While the cost of living in every country fluctuates, the reality in New Zealand is stark. Despite the immense land available for development, housing and other costs remain prohibitively high for many. This is due in part to the Land Resource Management Act, which complicates property development and market dynamics.
Personal Experiences and Insights
Our family, a New Zealand-based couple with three children, lived in Christchurch for 10 years. Like many, we had faced significant financial challenges, especially in maintaining a comfortable standard of living. Despite having ample funds from a successful IPO in the UK, we were still acutely aware of the value of every dollar.
One particularly eye-opening experience was my first supermarket receipt, which starkly illustrated the middle-class struggle. Grown-up professionals such as university lecturers, accountants, lawyers, and even junior doctors struggle to manage their finances. The story of my sister-in-law, a junior doctor who lived on camping sites to save money and return to purchase a property in New Zealand, highlights the financial strain many face.
Even today, young professionals with high-paying jobs feel at a loss to secure a foothold on the property ladder. This is ironic given the vast land availability in a country with a relatively small population. Difficulty in finding affordable housing is one of the primary challenges faced by many New Zealanders, as property prices, often of subpar quality, are disproportionately high compared to other Western nations.
Strategies for Affording the Cost of Living
On the positive side, our household has developed a set of cost-saving strategies to maintain a comfortable living standard. Focus on reducing energy consumption is key, with the use of solar panels, low-cost LED lights, and a wood burner that serves as a wetback for heating water. Reducing unnecessary expenses, such as subscribing to streaming services, dining out, or going to the movies, has also been crucial.
Moreover, engaging in self-sufficiency practices like growing vegetables, baking bread, and even managing multiple horses—all of which have become increasingly expensive as they age—has helped keep costs down. Work arrangements, such as working from home one day a week to minimize fuel costs for commuting, have also contributed to savings.
Given the current situation, our household income is primarily generated by my income. My husband, after being made redundant, has taken up the hobby of knife-making, a venture that currently does not generate much revenue. However, his redundancy payout has helped to eliminate our mortgage, providing a buffer during this uncertain time.
Conclusion: The Bittersweet Reality of Living in New Zealand
While the cost of living in New Zealand is undoubtedly a challenge, the landscape presents both difficulties and opportunities. For those considering relocating to New Zealand, it is essential to weigh the high costs against the many benefits the country offers. As with any other decision, careful planning and a willingness to adapt to the local market dynamics are key.