[ExPat]

Moggy,

You're comparing UK living with NZ living. I'm comparing US living with NZ living. My tax rate is about 20% and my pay would be significantly higher in the US than in NZ.

Let's do some hypothetical math.

If I earn 150k USD in the US, I would need to earn the equivalent of 210k NZD in NZ to be "even" yet when I factor in the tax rates it gets worse:

20% US Tax rate on 150k = 30k in taxes. 40% NZ Tax rate on 210k = 84k. I'm simplifying because both rates are actually marginal but it's easier to lay it out this way. But the highest paying jobs comparable to the one I have now in NZ only pays about $110k NZD. So I would cut my income in half simply to move to NZ then cut it in half again to pay taxes. My net income would be 1/4 of what I earn in the US now.

Now let's factor housing. I live in a 4 bedroom house in one of the largest cities in the US. The current cost for such house is about 200k USD which isn't difficult to pay for with 150k in income. But the equivalent house in NZ (Christchurch) would cost about 400k NZD which would be difficult to pay with 100k NZD taxed at 40%!

I really don't know or understand how people in NZ get by but a few people we spoke to said they lived off of credit cards and most had 50k in debt on credit card.

So it seems that if we wanted to move to NZ, the best course of action is to spend the next 10 years earning money in the US and accumulate (10 x 150k = 1.5 million) then pay cash for housing and other expenses down in NZ.

Again, this is all dependent on your existing lifestyle and what you are accustomed to. If you've never had something then you won't miss it but if you've had it, you don't want to lose it.

Finally, I know someone will point out things like "free" medical care in NZ whereas in the US, you need to pay for insurance but when I did my calculations, all those other variables cancel out. For example, in the US, you can write off (e.g. deduct) the interest expenses on your mortgage off your tax bill. It may seem strange but you are rewarded by the US Government for having a larger more expensive home as the tax write off grows as the mortgage grows. I don't believe such a thing exists in NZ.

While NZ medical care may be "free", I only pay $130/month for 90% coverage of all medical expenses. This covers all family members.