affordability???????????????

I thought rip off Britain was bad ...

My significant other has just been on the information super highway and she reckons interest rates for mortgages are between 6 and 8%..
and a decent job pays tax at 33%..

I thought we could expect a decent living in NZ but at these rates we'll be struggling to make end meet,,

am i missing something??????

No, unfortunately you are correct, the 33% tax rate is for higher incomes (i think its above $33,000 but i may be out a bit) which is about the same as the UK. The normal income tax is 19% (UK is 20% with ?38,000 and below) and interest rates are high, no doubt about that!

Other things to consider is things like GST, the VAT equivalent. It is 12% in NZ and 17.5% in UK so tax on items purchased is less. Rates are also less than the UK.

So there you go, ups and downs really!

Comparing the real difference between NZ and UK is not straightforward and just looking at tax rates will mislead you. There is a significant difference in favour of NZ (despite what others might say!).

If you run your own business or are self-employed then NZ is a far better environment in the long run.

The tax rates are actually pretty much the same as in the UK but in NZ you will not get the allowances you have in the UK. However, you wont pay NI contributions in NZ (and neither will your employer). Neither will you pay capital gains tax nor, when you die, will your family be hit with inheritance tax.

You wont pay stampy duty on house purchases when you move either... And because houses cost less than in NZ even if mortgage rates are a bit higher you wont have to borrow quite so much!

You'll save a fortune on Council Tax and fuel for your car too.

If you are an employee in the UK your aggregated top tax rate can be approx 50%... in the NZ it is 39% (plus 1%-odd ACC) max. If you run your own business in the UK your aggregated top rate can easily be beyond 64%... in NZ it will be 39% max.

The NZ financial system is a lot more transparent than in the UK where we have numerous hidden/stealth taxes that are often overlooked when you compare the cost of living between the two countries.

Alan.

[Lisa]

How much do you think a family of four would need to get by on? We don't want luxuries just the basics and treats for the kids now and again?
I realise this is a difficult question but rough idea's would be very welcome.

Lisa

[isv]

Lisa,

The NZIS web site has a good selection of cost of living prices etc. There is also a good set of (six) migration guides they produce that I would recommend - you can download them in PDF format.

These guides cover cost of living issues plus everything else that probably concerns you as a potential migrant.

Alan.

[Lisa]

Alan

Thankyou, i'll go have a look see :icon_biggrin:

Lisa :icon_biggrin:

But if any Kiwi's out there have any first hand experience, i'm hoping here, but i'd stil love to hear it :icon_wink:

Lisa,
I would think, from my research, that anything over about $45,000 would provide you with a reasonable standard of living in a relatively nice area.

$60,000 would be a nice standard of living and anything over that would be a bonus.

Thats my estimates anyway!

Comfortable on $45,000 with a family of 4???

I wish! :)

Depends on how much your money is going on the mortgage, vehicles, etc.

After tax take home about $600 pw.
Mortgage, about $250 (if less the diff is to pay if off earlier)
Food? $200 or more depending on diet and season.

....

not much left...

It has to be better than the U.S. I don't know about UK, but my husband and I make about $45,000USD combined, and our mortgage payments are $800. (not so great real estate market!) And the cost of living is unreal. Of course, there is just the two of us, but everything just costs TOO much. :icon_confused:

I did say 'reasonable' standard of living! Meaning you can have a reasonable house, in a reasonable area, and be able to run a car or 2.

Not many luxuries on that kind of income i'm sure! We'll see....