The world is full of places worth moving to, and New Zealand may be one of them for some. The land of the Kiwis is known for its breathtaking natural landscape, diverse cultures, laid-back lifestyle, and safety. It is considered one of the safest countries in the world, with low crime and limited corruption.
If you plan a week trip to New Zealand and fall in love with the country, how expensive would it be to move there permanently? Let’s discuss the basics of your New Zealand trip budget and how expensive it is to live in this country.
Currency: New Zealand Dollars
The primary currency here is the New Zealand dollar, created in 1967, equaling roughly 0.59 US dollars, 0.54 euros, and 0.46 British pounds. It is considered a relatively stable currency because of the strength of New Zealand’s economy and future outlook. These dollars are the tenth most traded currency in the world and are subdivided into 100 cents each.
Housing in New Zealand
The primary currency here is the New Zealand dollar, created in 1967. It equals roughly 0.59 US dollars, 0.54 euros, and 0.46 British pounds. Because of the strength of New Zealand’s economy and future outlook, it is considered a relatively stable currency. These dollars are the tenth most traded currency in the world and are subdivided into 100 cents each.
Renting
Renting is a popular option in New Zealand, especially if you move to a major city like Auckland or Wellington. In various markets, you can find apartments, flats, houses, townhomes, and other living spaces available for rent.
New Zealand rent is calculated weekly, so if you want to live in Auckland, the median weekly rent is around $680 in local currency. The average rent across the country sits at $525 per week. Smaller towns offer the lowest prices, so you could find cheaper alternatives that cost as low as $420 per week.
Landlords can charge bond fees of up to four weeks of rent when a new tenant moves into a property. Some often charge less to attract more new tenants. Letting fees are no longer legal in New Zealand, and they used to cost one week’s rent. Generally speaking, renting will be cheaper than a mortgage on a house.
Also, if you move to New Zealand on a work visa, you can only rent at first and will not be eligible to buy a home until you have lived there for at least half the year.
Buying Property
People who move to New Zealand for the first time cannot buy a house until they are either ordinary citizens or have met the criteria for residence visas. If you have saved money for a down payment, you can buy a house and take up permanent residence in New Zealand.
Homes are tough to afford on a tight budget. The housing supply is limited, meaning houses for sale tend to be listed for higher prices. If you only make minimum wage in New Zealand, you cannot afford a home, even in smaller cities. The average house price is $927,284, but housing prices depend on local markets. In Auckland, the median cost of a home is $1.1 million, but in many small towns, you can find homes that cost less than $500,000.
There are other costs associated with buying a house as well. These New Zealand costs include legal fees, building inspections, insurance, real estate agent fees, conveyancer fees, and registration fees.
Government Initiatives and Housing Affordability
Whether you want to move to a small town or one of the larger cities in New Zealand, buying a home is a big venture. Assuming you meet the residency or citizenship requirements to purchase property in this country, several programs will make your first purchase more affordable.
Most lenders will demand a 20% down payment to approve your mortgage application, but through the First Home Loan program, you only need to save money for 5% if you meet the income requirements.
The government is also trying to address the housing shortage, which would bring down the prices of many homes. The KiwiBuild program incentivizes developers to build housing units that are more affordable for first-time buyers. If you meet the income cap requirements and residential status, you can find a cheaper, new home through the KiwiBuild program.
Everyday Expenses in New Zealand
While rent or a mortgage will take up the most significant portion of your budget when living in New Zealand, you also must save money for everyday expenses. The cost of living in this country is considered relatively high, with a detailed budget breakdown estimating that one person needs $4,000 to $5,000 per month to afford all expenses. Here are the prices for some items you will need consistently to enjoy life in New Zealand:
Groceries and Food
Saving money for groceries and food is essential. The cost of groceries will vary between major cities and rural areas. Therefore, you must consider your budget based on local market prices. Here are a few costs for essential grocery items in supermarkets:
- Milk (1 liter) – $3.15
- Loaf of bread – $3.23
- Rice (1 kg) – $3.25
- A dozen eggs – $11.24
- Apples (1 kg) – $4.63
- Chicken fillets (1 kg) – $15.72
If you like to eat out, then the cost per meal for an average restaurant is about $20. At a cafe, you spend $10 to $15. Domestic alcohol costs about $5.44 for half a liter, and a pack of 20 cigarettes is roughly $38. You can always save money by finding the cheapest supermarket in your community and shopping there for groceries.
Transportation
Whether you plan to live on the North Island or South Island, transportation will be crucial. Even if you live in a walkable city like Wellington, which estimates that you can reach all necessary amenities within a 14-minute walk, there will be times when you have to get in a vehicle. Public transportation, like buses and trains in cities, will cost between $4 and $11.50 per day. A domestic flight will cost $50 to $70 for one-way flights, depending on where you fly. For example, a cheaper flight to a small airport will save you some money.
If you decide to own or rent a car, a liter of gasoline costs $2.85. New Zealand rental cars are popular, especially for new residents, but they are expensive. Purchasing a small sedan will cost between $30,000 and $40,000. You must also pay for insurance, registration, and a warrant of fitness.
Utilities
Whether you pay for utilities in your home or a rented living space, these regular expenses are essential to calculate in your budget. It is estimated that a 900-square-foot apartment has an average utility cost of $250 per month.
Residential electricity costs 30 cents per kilowatt hour. An average water bill for the year might be $1,000, but higher-cost areas hover closer to $2,200. Internet services start in the $50 to $60 range for monthly basic plans. If you want more processing speed, you must pay much more. The cheapest mobile phone plans from Spark and 2Degrees are around $30 monthly. With more texting and calling, you can expect to pay closer to $60 or more with another provider or a better plan.
Lifestyle and Entertainment in New Zealand
Let’s be honest: You are probably moving to New Zealand for a better lifestyle. Finding a job is fantastic, but you are here to enjoy the sights and sounds of this unique country. Let’s talk about the costs of entertainment when you live in the Land of the Long White Cloud.
Leisure Activities
The North Island and South Island provide endless opportunities for adventure and entertainment. You can go hiking in many places for free or at national parks, although you may need to pay small fees to rent huts. Water sports are also popular along the coastline of New Zealand. When you head to the mountains, skiing can become a regular hobby. However, the cost of equipment and hill passes makes this an expensive activity.
New Zealand features a unique culture with Maori, European, and Pacific Islander influences. You should save money to attend cultural events like concerts, festivals, and museums. The more you experience Kiwi culture, the more you will fall in love with life in New Zealand.
Travel and Tourism
Even though New Zealand is small, there is still much to see. Knowing when to fly and where to land, you can take domestic flights to other parts of the country without spending too much money. Flights to big cities will cost more, especially during the peak season in July and August. You might spend up to $400 on a one-way flight to a big city.
To visit some of New Zealand’s tourist attractions, you often pay entry fees or buy long-term passes. This country is famous for being the location of The Lord of the Rings. You can visit the movie set of Hobbiton with a $75 walking tour or a $120 tour of the movie set in Middle Earth.
National parks in New Zealand are free to visit, so you can explore much of the landscape without spending any money. However, you can pay for more adventurous experiences like scenic flights, private rooms, skydiving, or bungee jumping.
Dining and Nightlife
If you want to enjoy fresh food at a restaurant, please note that the cost will depend on the business location. For example, the popular tourist areas in Auckland and Wellington will have more expensive dining services, even for mid-range restaurants.
Typically, an average restaurant meal will cost $20, while a fine dining option is closer to $40. If you venture into a pub or bar, you can get a drink for $5 to $15. Common entertainment activities for nightlife include comedy shows, theater performances, and movies. Movie tickets average between $10 and $14, while gaming activities or other adventures are around $50.
Healthcare and Education
New Zealand is a relatively expensive country but offers significant benefits. The healthcare and education systems are robust, and long-term residents can enjoy these services.
Healthcare
New Zealand has a public healthcare system powered by nationwide taxes. Everyone has access to this free healthcare, which means there are no out-of-pocket expenses except for specialists and medications. However, this does not apply to dentistry, which can be incredibly expensive. If you want access to higher-quality healthcare, private health insurance options exist.
Many residents of New Zealand trust the quality of the healthcare system. This is commendable since this is not true of every country with free public healthcare.
Education
Because of the tax system, citizens and residents can access public schools for free. If you want to pay private school tuition and other costs, these expenses will vary depending on the school. The annual fees for primary and secondary school range between $25,000 and $35,000 per year.
To pursue further education at university, you will pay $22,000 to $35,000 for tuition, with room and board fees on top. Polytechnic schools are cheaper and more focused on specific skills. Therefore, if you already know your educational focus, you could save more money before starting your career.
Salaries and Wages: Earning Potential
The cost of living in New Zealand is high compared to average incomes. Salaries are often determined by the location in which you live. For example, the average salary in Auckland is $75,000, but in Northland, the median income is only $50,000. Jobs with higher salaries in the $80,000+ range include banking, government, architecture, accounting, science, legal, and IT.
Taxes take a large percentage of your salary, reducing your take-home pay. If you make $83,000, taxes will reduce your take-home pay to about $63,000. The minimum wage in New Zealand is currently $23.15 per hour for adults, while the living wage is $27.80. The fastest-growing industries in this country are construction, government, healthcare, biotechnology, and creative services.
Cost of Living Comparison: New Zealand vs. Other Countries
The cost of living is an essential metric when choosing a place to live. More affordable countries are more likely to help you buy everything you need and save more. Others, like New Zealanders, find it difficult to build substantial savings for the future. Here are a few comparisons with other countries’ cost of living based on the index ratings by Numbeo [1].
New Zealand vs. Australia
The cost of living index measures how much people need to spend to reach a certain standard of living. Australia and New Zealand have similar ratings, but Australia is slightly more expensive, with an index rating of 70.19. On the other hand, New Zealand has a mid-year rating of 64.63.
New Zealand vs. United States
The United States ranks ninth in the world’s highest cost of living index, making life there noticeably more expensive than life in New Zealand, which is 13th. Although the difference is not huge, moving to New Zealand could be a more affordable lifestyle if you maintain a similar income.
New Zealand vs. United Kingdom
The United Kingdom is generally more affordable than New Zealand, though the difference is small. New Zealand’s index rating is 64.63, and the United Kingdom’s is 61.95. However, you should note that the United Kingdom consists of four nations: England, Wales, Scotland, and Northern Ireland, each with a unique cost of living.
New Zealand vs. European Countries
The cost of living in Europe varies widely. Some countries like Spain, Portugal, Italy, and the Czech Republic have very low cost of living indexes in the 40s and 50s. Other countries like Norway, Denmark, and Switzerland are in the highest positions in the world, with ratings in the 70s and above. New Zealand falls somewhere in the middle with its rating of 64.63, so it is more affordable than some countries but more expensive than others.
How to Save Money While Traveling in New Zealand
Millions travel to New Zealand yearly to explore its landscapes, cultures, history, and opportunities. The Kiwi lifestyle is very appealing with its friendliness and laid-back attitude. However, it is one of the more expensive countries to visit and live in because of its isolation, housing supply shortage, and tourism industry. Here are a few ways to save money while traveling in New Zealand:
Instead of paying for a private room in your accommodation, consider staying at a hostel. Most hostels are much cheaper than hotels or Airbnbs, and you get the added benefit of connecting with other travelers. In some cases, you can find free accommodation. To avoid high transportation expenses, try booking cheaper flights or walking more. For the best deals on tourist attractions, travel during the off-peak seasons, anytime outside of July and August. Instead of constantly eating restaurant meals, try buying groceries during the trip and cooking your meals to reduce living expenses. Usually, the total cost of ingredients is lower than the cost of a restaurant meal.
Budget travellers know how to save more money while exploring new places, so follow these tips to avoid wasting money on less important expenses. Then, if you decide to move to New Zealand permanently, you will have more savings to finance your move.
Tight Budget? Save Money in New Zealand
Overall, New Zealand is a relatively expensive country to travel and live in. If you are only here for a short time, you may pay high fees for a rental car. The strength of the tourism industry makes it more costly to explore the cities and attractions, though you can explore much of the landscape without spending so much money. A larger airline like Air New Zealand will also be more expensive, though it can take you to more places. The total cost of your vacation experience will depend on your specific travel style and preferences.
Living in New Zealand is another story entirely. A lower average income combined with high costs of living makes affordability difficult. Plus, there are not a ton of jobs in this country. However, if you can find the right career in a growing industry and learn to navigate the additional cost of rent or a mortgage, then life in New Zealand could be exactly what you seek.
Resources: [1] Numbeo – Cost of Living By Country