The Cost of Living in Auckland: Is It Worth Moving to New Zealand?
So you've been offered a job in Auckland, and you're wondering if it's worth moving to New Zealand? Well, let's be honest - it is an expensive place to live, in fact Auckland may be the 43rd most expensive city in the world, but its local purchasing power is 15% higher than Johannesburg. You will not survive on $65K here. In South Africa, that would be equivalent to R50000 a month.
Housing is the most significant cost in New Zealand. In Auckland, the median house price is $850,000. Let's say you have a 20% deposit of $170,000 (R1.7m). That leaves you with a mortgage of $680,000 at an interest rate of let's say, an optimistic, five percent. Your monthly repayments would be $3414.
Now, in comparison, the average rent for a three-bedroom house in Auckland is $630 per week. That's $2760 per month. So, you're actually saving money by buying a house! And that's not even taking into account the fact that your mortgage repayments are going towards owning your own home, rather than someone else's.
Of course, there are other costs to consider when you're thinking about moving to Auckland. But if you're looking at the financial aspects of the move, then buying a house is definitely worth it!
What other costs are there to consider? Let's start with food.
Food is relatively expensive in New Zealand, especially if you're used to South African prices. A loaf of bread will set you back $3.50 and a bottle of milk is around $7.00. You can, however, save money by cooking at home rather than eating out - in South Africa we use to eat out at least every 3rd night...in Auckland, it might be once every 3rd week.
Another cost to consider is transport. Auckland has an extensive public transport system, which is relatively cheap and efficient. If you live in the city centre, you may not even need a car! A monthly pass for the bus or train costs $150, and a daily pass is $12. Currently there are half price deals in New Zealand, and this can add up to a considerable saving...and best of all, you don't have to stress about parking.
Childcare costs in Auckland are some of the highest in the world. The average cost of full-time childcare for one child is $433 NZD per week, and for two children, it's $752 NZD per week.
So, is it worth moving to Auckland? We think so! It's an expensive city, but with a good job and a bit of financial planning, you can make it work. Just be sure to do your research before making the big move!