Breaking News: Uncovering the Hidden and Exorbitant Costs of Living in New Zealand
Are you considering moving to New Zealand? While the country’s stunning landscapes and laid-back lifestyle may have you dreaming of a kiwi adventure, be prepared for some unexpected expenses. In this exclusive guide, we’ll reveal the 10 hidden and exorbitant costs of living in New Zealand and provide valuable tips on how to reduce your expenses.
1. Health Insurance: A Steep Bill
New Zealand’s public healthcare system is excellent, but it’s not entirely free. You’ll need to pay for medical services not covered by the public system, such as dental care, optometry, and prescription medication. Average annual health insurance premiums: NZD $1,500 – $3,000 (approximately USD $1,000 – $2,000).
Tip: Research and compare health insurance providers to find the best coverage for your needs and budget.
2. Car Insurance: A Necessity with a Price Tag
Owning a car in New Zealand can be expensive, with high insurance premiums, registration fees, and maintenance costs. Average annual car insurance premium: NZD $1,200 – $2,500 (approximately USD $800 – $1,700).
Tip: Shop around for car insurance quotes and consider a higher excess to reduce premiums.
3. Pet Care: A Hidden Expense
While New Zealand’s outdoor lifestyle is perfect for pets, pet care can be costly. Average annual pet insurance premium: NZD $500 – $1,000 (approximately USD $350 – $700).
Tip: Research pet insurance providers and consider a policy that covers unexpected vet bills.
4. Food: A Higher Cost of Living
New Zealand’s remote location and import duties make food prices higher than in other countries. Average monthly grocery bill: NZD $800 – $1,200 (approximately USD $550 – $850).
Tip: Plan your meals, buy in bulk, and consider shopping at local farmers’ markets or joining a food co-op.
5. Housing: A Major Expense
The cost of housing in New Zealand, particularly in Auckland, is skyrocketing. Average monthly rent: NZD $1,500 – $3,000 (approximately USD $1,000 – $2,000).
Tip: Consider sharing a house, looking for apartments outside of city centers, or exploring alternative accommodation options.
6. Internet and Phone Bills: A Steady Drain
High-speed internet and phone services can be expensive in New Zealand. Average monthly bill: NZD $100 – $200 (approximately USD $70 – $140).
Tip: Negotiate with service providers, consider a prepaid plan, or opt for a lower-cost alternative like a mobile hotspot.
7. Home Maintenance: A Hidden Expense
As a homeowner, you’ll need to budget for regular maintenance, repairs, and replacements. Average annual home maintenance cost: NZD $1,000 – $2,000 (approximately USD $700 – $1,400).
Tip: Save for a rainy day, prioritize repairs, and consider hiring a handyman for minor tasks.
8. Transportation: A Necessity with a Price Tag
While public transportation is available, owning a car or using ride-sharing services can be expensive. Average monthly transportation cost: NZD $200 – $500 (approximately USD $140 – $350).
Tip: Consider carpooling, using public transportation, or exploring alternative modes of transport like cycling or walking.
9. Entertainment and Leisure: A Steady Expense
New Zealand’s stunning natural beauty and outdoor activities can be costly. Average monthly entertainment and leisure budget: NZD $500 – $1,000 (approximately USD $350 – $700).
Tip: Prioritize free or low-cost activities, take advantage of outdoor spaces, and plan ahead for special events or activities.
10. Taxes: A Steep Bill
New Zealand has a relatively high tax rate, with income tax, GST, and other levies. Average annual tax bill: NZD $5,000 – $10,000 (approximately USD $3,500 – $7,000).
Tip: Understand your tax obligations, claim deductions, and consider consulting a tax professional.
Conclusion:
While living in New Zealand can be a dream come true, it’s essential to be aware of the hidden and exorbitant costs involved. By understanding these expenses and implementing the tips provided, you can reduce your costs and enjoy a more affordable lifestyle in this beautiful country.
SEO Tags:
- Living in New Zealand
- Cost of living in New Zealand
- Hidden costs of living in New Zealand
- Exorbitant costs of living in New Zealand
- New Zealand lifestyle
- Kiwi living
- Expats in New Zealand
- Moving to New Zealand
- New Zealand immigration
- New Zealand real estate
- New Zealand housing
- New Zealand food prices
- New Zealand healthcare
- New Zealand car insurance
- New Zealand pet insurance
- New Zealand internet and phone bills
- New Zealand home maintenance
- New Zealand transportation
- New Zealand entertainment and leisure
- New Zealand taxes
- New Zealand expat tips
- New Zealand living costs
- New Zealand budgeting tips
Hi everyone
This exploded on yesterday's newsletter – https://www.moneyhub.co.nz/hidden-costs-of-living-new-zealand.html – credit a few Reddit posts for talking about this topic recently. I'm sharing it as it's a fairly fresh draft; I'm keen to know if I need to edit anything. The biggest takeaway is the 29% p.a. credit card (with rising credit outstanding, super expensive to service). Rates are also an issue as they seem to go up without limit. As a kid, I used to deliver rates notices to a region (it was cheaper than the council posting them!), but with these recent hikes, there are seemingly no limits to cost rises.
I'm going to publish a guide on rates next, looking beyond this recent article as we examine the costs.
Thanks, as always, for your corrections – I can always make this guide better.
View info-news.info by MoneyHub_Christopher
I really like the structure with the “what you can do to avoid the cost”.
For the ones where you can’t avoid the cost (like rates) I found I could make it easier to manage it in my budget by aligning my payments with my pay. When I first started paying rates it was quarterly payments (where I’d save for it in a separate account and then have to pay manually). Shifting to a DD aligned with my fortnightly pay meant I didn’t need to worry about a monthly or quarterly payment being due or coming out at a bad time. Same with power – I’m with Flick and have it set up for fortnightly payments (don’t think all power companies allow different pmt frequency outside of monthly?)
On rates, two things which are not widely known and might be worth covering in your guide.
There is [ a small rebate](https://www.govt.nz/browse/housing-and-property/getting-help-with-housing/getting-a-rates-rebate/) available for people on very low incomes (c$31,000 a year for the full rebate). It’s not much, but it’s worth investigating. If you have dependents the amount of household income you can have increases.
You can also postpone rates if you have sufficient equity in your home. You can repay anytime, or when you sell, or die.
In a very few cases, accommodation supplement might help. It’s income tested and asset tested, but that income does not need to be a benefit.
Why are bikes not included as an option to reduce car cost? They don’t apply everywhere but they are a viable option in many NZ cities and provide huge savings.
There’s also the FBT exemption on bikes (check out workride) which can allow you to purchase an e-bike through your employer less a significant tax portion if employer has opted into the scheme.
For families cargo bikes are a viable option to transport children.
In places with longer commutes multi-modal transport can be a big saver, pop your bike on the front of the bus and cycle just the start and end of the journey.
I also think public transport should be given more of a push. My partner and I have been living in West Melton and commuting to different parts of Christchurch for the last few months, her by bus and me by car. While it’s taken her much longer for commutes she’s paid less than $100 and I’ve paid well over $500 in fuel alone.
Edit: formatting.
Depending on where you live, you can save a significant amount by not buying everything at the supermarket. I go to The Warehouse (milk and tea bags), Mad Butcher, greengrocer and Cracker Jack (cleaning products, shampoo and soap) as they are much cheaper and close together. I have to travel by bike so there is no overspending if I can’t carry it home.
I think the what to do about car and credit card finance is missing the part where you advice against debt, and give advice on how to build that cost into a weekly budget and save in advance.
It seems (particularly in the car section) like having car payments is standard practice and not a big deal. Just because it’s common doesn’t mean it’s right. Saving what you’d pay on a car loan into a dedicated bank balance means that when it’s time to upgrade the car the money is already there. If you pay off the loan, hold onto the car at least one more year before upgrading paying the same amount etc.
Statements like “do anything you can not to incur this type of debt”. Here are other options for getting money rather than high interest debt. And if you already have it here’s what to do (with a bit of an expansion without going into another link). E.g. talk to your bank about the situation and asking how they can help you get out of it, i.e. a personal loan or a lesser rate credit card.
Best tip that helped me with rising costs in NZ:
Live in Mexico
None of these costs are “Hidden”. I appreciate “if it bleeds, it leads” but no one seriously thinks living in an under-populated long thin country with topographical challenges, situated on a fault line at the bottom of the world, with a history of under investment in infrastructure, and successive governments that have done nothing about monopolistic practices is going to be cheap.
Who ever pays interest on their credit card? That should never occur, and if you can’t manage that, you shouldn’t have one.
I’m amazed more people are not up in arms about the recent rates hike.
Is out of control.