[mich]

Hi

My family and I are going to be moving to Auckland within the next few months and wondered if you would be able to give us some idea of what you think a comfortable standard of living would cost per annum for a family of 2 adults and 1 child. What would we need to earn basically

Thanks
Michelle

[IanW99]

Hi

My family and I are going to be moving to Auckland within the next few months and wondered if you would be able to give us some idea of what you think a comfortable standard of living would cost per annum for a family of 2 adults and 1 child. What would we need to earn basically

Thanks
Michelle

Hi Michelle, and welcome to the forum.

There are many threads on the forum that discuss wages and cost of living etc, it would be worth trying the search facilities to find what you are interested in.

There are also cost of living calculators on this website and others that you can enter details in for them to show what it would cost you.

Before anyone could advise you further on how much you would need to earn, we would really need to know how much capital you are expecting to bring to NZ with you and whether you are going to buy a property with / without a mortgage or rent?

Ian

[mich]

Hi Ian

Thanks for your reply. We would more than likley invest our money,rent for a while and get familair with the areas around Auckland. Someone mentioned that an annual salary per household of $70 would be sufficient. I however thought $100.What do you think?

[IanW99]

Hi Ian

Thanks for your reply. We would more than likley invest our money,rent for a while and get familair with the areas around Auckland. Someone mentioned that an annual salary per household of $70 would be sufficient. I however thought $100.What do you think?

Hi Michelle, well we live in Wellington so can't really tell you prices etc for Auckland.

Would agree that renting for 6 months why you get your feet, learn the areas and the market etc is a really good idea.

Would you be using the income from you investment to pay for the rent? and what will you do when you come to buy? Surely you would still need to work out how much mortgage etc.

I'm sure that we could survive on NZ$70K but would prefer NZ$100K :D

Ian

[Myrkk]

Ian, would you say $80,000 would be enough for a good standard of living in Wellie. With a probably mortagage of $250000

[IanW99]

Ian, would you say $80,000 would be enough for a good standard of living in Wellie. With a probably mortagage of $250000

Sorry, there are a lot of variables here but I think that these figures would be pushing it for a good standard IMO.

I'm sure that it is do-able and there are plenty living on this figure but IMO it is low.

I'm basing the mortgage over 25 years on a fixed term at 9.6%, you could of course get the term extended and get a lower interest rate or have a smaller mortgage.

So, I'm sure that you could get it to work, but for me I would like a bigger margin.

BTW, what price are you expecting to pay for the house and for which region of Wellington? Another option would of course be to rent.

Ian

[mich]

Hi Ian

We would be bringing over about $400 000 to invest and use that for a house once we have decided where etc. We have an idea of the rent and have allocated money for that. From the sites we have seen and the info we have gathered, we think if we earned $70 -100k per household per annum, we should be ok.

[IanW99]

Hi Ian

We would be bringing over about $400 000 to invest and use that for a house once we have decided where etc. We have an idea of the rent and have allocated money for that. From the sites we have seen and the info we have gathered, we think if we earned $70 -100k per household per annum, we should be ok.

Assuming a standard savings rate of 7.75% and having to pay at the higher rate of tax (39%) NZ$400K should still bring in approx $410 per week in interest which should be enough to cover the cost of renting most properties. If you were to stay renting then your wages would be very comfortable on NZ$70K income.

When you come to buy it will depend on how much mortgage you need on top of your capital which will of course depend on the house and location that you choose. As you will be renting for a while then you will be in a good position to see what your outgoings are and what you specifically can afford.

Have you got a price range in mind yet for the house / location that you are interested in e.g. by looking at trademe etc?

Ian

[tigerlily]

I've not seen many good rentals in Welly for $410 a week. We are paying $600 per week for a 3 bedroom in a very good area.

[IanW99]

I've not seen many good rentals in Welly for $410 a week. We are paying $600 per week for a 3 bedroom in a very good area.

They are actually looking for Auckland, and already have funds availalable for renting, my point was that interest alone could cover rent or most of it.

It must be a very good area that you are in, we were paying less than $500 per week for a brand new 5 bed house last year.

Ian

[mich]

Hi Ian

We are not familiar with the areas however we would need to live close to good schools ( my son is 3). I will have a look at the trademe website - thanks.

[IanW99]

Hi Ian

We are not familiar with the areas however we would need to live close to good schools ( my son is 3). I will have a look at the trademe website - thanks.

There have been many threads on this forum describing areas of Auckland.
Which ones are best, good for schools etc.

Another good website for rentals is RealEstate: Rentals Auckland (http://www.realestate.co.nz/rental/all/auckland).

Would suggest you either use the search facilities or start a new thread asking for advice on Auckland with good schools etc.

Ian

[Myrkk]

Sorry, there are a lot of variables here but I think that these figures would be pushing it for a good standard IMO.

I'm sure that it is do-able and there are plenty living on this figure but IMO it is low.

I'm basing the mortgage over 25 years on a fixed term at 9.6%, you could of course get the term extended and get a lower interest rate or have a smaller mortgage.

So, I'm sure that you could get it to work, but for me I would like a bigger margin.

BTW, what price are you expecting to pay for the house and for which region of Wellington? Another option would of course be to rent.



Ian


This is why we are a little worried at the moment about the move. We are hoping to get £100,000 from our house sale [not incl. the money set aside for the move etc.] and hubbie has been offered a job for $80k. From looking at the property section on trade me and various other websites, we are expecting to have to pay around $500k for a house. So we thought we would end up with a mortgage of around $250k.

Regions looked at are all around the Kapiti coast for a 3 bed detached house with a garage.

Oh yea, and given age we are thinking that 20yrs will be the max. we would get for a mortgage.

[IanW99]

This is why we are a little worried at the moment about the move. We are hoping to get £100,000 from our house sale [not incl. the money set aside for the move etc.] and hubbie has been offered a job for $80k. From looking at the property section on trade me and various other websites, we are expecting to have to pay around $500k for a house. So we thought we would end up with a mortgage of around $250k.

Regions looked at are all around the Kapiti coast for a 3 bed detached house with a garage.

Oh yea, and given age we are thinking that 20yrs will be the max. we would get for a mortgage.

At least you are being realistic, I can say that you have the right numbers in place to have a really good future in NZ it is just that at this moment in time all the numbers are somewhat against you.

There are many things that could happen in the next 6 months to make this much better.

Exchange rates could be more favourable, house prices could fall etc.

It should also be noted that budgeting NZ$500K for a 3 bed in Kapiti is on the high side, there are many houses available for less money than this and your ownly real problem would be the high mortgage costs.

One option I would consider would be to come to NZ and rent for 6 months (always recommended anyway) to get to know the area and keep an eye out for the ideal property. You could then keep an eye on the exchange rates and move you pounds at a more favourable time.

Ian

[Myrkk]

Thanks Ian. It's nice to get some confirmation that our research is on the right track.

It looks like our planned move is being postponed anyhow........my MIL was found on the floor of her home at the weekend and is currently in hospital...... no hope of us moving while she is ill......... we wouldn't be able to live with ourselves.

Perhaps the global money situation will be more stable by then.

[IanW99]

Thanks Ian. It's nice to get some confirmation that our research is on the right track.

It looks like our planned move is being postponed anyhow........my MIL was found on the floor of her home at the weekend and is currently in hospital...... no hope of us moving while she is ill......... we wouldn't be able to live with ourselves.

Perhaps the global money situation will be more stable by then.

Sorry to hear about your MIL, hope she recovers soon.

Ian