Two Americans emigrate to New Zealand from Colorado,
USA.
We talk about
our life in Nelson, New Zealand.
January 2007 | Blog home | March 2007
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This country and this town are well beyond any sort of environmentally friendly place I've ever been. Although I wouldn't necessarily call the following idea savvy: case in point, I had to spend one day recently at work revamping the composting and worm farm pages of the web site at Council. Uh, worm farms? I thought I had it tough with my own cockroach and spider issues.
Now composting, not such a big deal, you just mush up your stuff and use it for mulch, I can get it and even see it. Although I would think at some point there would be a stench ... but I digress.
Worm farming. If any of you aren't familiar with this concept, here are the advantages of having a worm farm:
In a two person household, one thousand worms would be enough to digest all the food scraps. You still use the stuff for mulch, the 'castings' take about seven weeks to be ready to use on the garden, quicker than compost bins. Earthworms from the garden can also be used in a worm bin. Here's how to do it:
Lucky for us in Nelson, there is a small subsidy to purchase one of these handy dandy worm farms, you know how much Don and I dislike doing things around the house, which one of us would get to build the worm farm...not me!
Well after Angela has done all the work on this web site, I have decided to debut with a blog on Nelson Market Day. Even though we have a market day every Saturday and Sunday, most cities in the area also have a dedicated day during the summer for a larger market. This usually includes all the regulars plus the various stores in town. They close off the main drag (Trafalgar Street) and let vendors set up their displays. Below are a few pictures and brief commentary.
Ah, the gazebos are the trademark of any fine market. This shot is important because of the Icebreaker sign - many of you may already know our obsession with the Icebreaker line of Marino wool products. Great stuff.
Earlier this summer the city hung these flower baskets throughout town.
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There is a prize to the first person who correctly counts and emails me the number of flower baskets from this blog.
The Scots are coming, the Scots are coming!!! I stood my ground and let these kilt-wearing, pipe-blowing gangstas make their way around me. No one messes with the Don on market day.
Yeah, that's what I thought, run away, run away. No fight left in them.
Sweet as, a little bit of Bavaria right here.
I guess you can just point to the animal you want in your burger or sammy (guess that is a sandwich) and off you go.
Actually it is a really good learning tool for small children - they can easily identify the animal the like the most then it can be slaughtered and fed to them on a bun. cool.
One of the carneys always present at the street fairs. This bloke was pretty flash. Although he was a bit cheeky with the crowd, all was in good fun. In his final stunt he balanced on this box while juggling plungers. Ah, who wouldn't want their child to grow up and do this.
Time to kick back and relax with a cuppa.
We've been away for 5 days or so down in Christchurch and there is a lot to write about, but we came back to a full work week for us both, so ... onto some fluff for now.
US word / Kiwi word
send an email / flick an email
eraser / rubber
daytimer or calendar / diary
hourglass / eggtimer (sounds like the practical came into play here)
candy / lollies
blue cheese / blue vein cheese (another say-what-it-is option)
pacifier (for a child) / dummy, or could be dummie
check, like a pay check / cheque or draft
bachelor party / buck's night
bachelorette party / hen's night
shaving cream / shaving foam
friend, buddy, dude / mate, used for women and men too, pretty much universal for all forms of friend
don't ever say fanny pack here (or in U.K. and Europe too), for a fanny is slang for the female genitalia!!
and, funniest one:
outhouse / longdrop ... get it? get it? :)
Also, we don't say aluminum here, that is apparently an exclusively US word for the actual metal aluminium (al - oo - min - ee - um), and here as well as the rest of the world use the true name. I guess those of us raised in the US just couldn't get our tongues around that one.
NOTE: Don corrected me on this one, I guess the actual name used to be aluminum but it was changed to match the other metals on the periodic table, adding the -ium at the end. Looks like again it is just the US lagging behind changing, anyone else heard of the metric system?
The job saga continues ... although I'm not using the word "saga" in a bad way. With not too much to choose from in little 'ol Nelson, my search for a second part-time job to complement my existing job is like finding a needle in a haystack. Don's been working full-time since November and it's time I rejoin the real work force and get up to those 40 hours.
I am still a part-time temp at the Nelson City Council and I've had news that my job will be put out for advertising in the near future. I am definitely going to apply for it, but it's only a 20-hour per week job. I talked with the HR folks and found out what it pays -- gaga, it's good, especially for Nelson. So I hope I'm still a shoo-in (I thought I always was, but perhaps using the word "still" is only in my own mind!).
In the meantime, I applied this past week for a couple of jobs, one that turned out to be offering basically slave wages and could be violating IRD (IRS equivalent here) regulations, so that will be a big no. The second job I interviewed for today, at a luxury retail shop named [name removed] to be the back office administrator. The advert also added in graphic design, website management, marketing and creation of office systems. Typical job here: Betty catch-all. Because it asked for a website person, I put my hat in. In addition, the shop is one of the cutie-est little shops in town. I visited a few weeks ago with my friend Jade and it's definitely cool.
The interview seemed to go fabulously, the owner herself conducting it. She was warm and funny and completely impressed with me, my CV, and my shoes! How could I not love her when she loved me?? The job sounds even better than the ad because she is not an organised person, she doesn't focus on operations at all--typical creative-person-who-starts-her-own-shop and then two years later decides it's time to shape up. And she knows well enough to know she needs to find someone to complement her style and her skills. (Sound familiar Vicki? :) ) The owner is looking to expand all over New Zealand and start an internet business too. How awesome it would be to be part of that.
She told me she got 40 resumes for the job--she was stunned, but I didn't think that was a lot. Perhaps for Nelson it is. She all but said I would be back as one of the final candidates after she slogged through the rest of the interviews. So I got a bit bold and said, with a laugh, you could just offer me the job now. At least she laughed, but I sensed that she'd like to do just that. I hope I'm not getting too cocky, could you imagine me coming back here to tell you that I didn't get the job? Crikey! I do have a history of coming in second...
The funniest part to me was that she knows the temp recruiter who placed me at Council and she told me she would place some calls to find out more about my skills and how I tested at the agency. She also said she could probably call up someone at Council to learn more about my web skills, all to confirm what I've stated on my CV because she's not personally technically savvy (although she said she believed me about my skills, but it is wise of her to check up as I've been told numerous times how unskilled people can be despite what they've claimed--Don knows all about this). How weird it was for someone to tell me they would call around town to find the skinny on me, that I would be known enough for someone to actually call around town. I didn't think I knew anyone, I still feel anonymous, but apparently no one is in Nelson. Small, small towns. I learn something new every day about living here. You think a town of 50,000 is big enough, but never.
Anyway, keep your fingers crossed for me, I think this job would be so cool and it suits my talents and skills. It will have variety, fashion, and I'd be part of one of the hippest shops in town, soon to be the country. In fact, cross both fingers!
Since I don't blog that often, I figured I'd throw a bunch of material into one post. So sit back, grab something to eat, and spend a bit of time in my world.
I'll start with a brief chat about the weather - good way to break the ice, ease into the blog with some idle chit chat. Anyway, I frequently get asked about the weather down here and what the summer has been like. I think this has a lot to do with the crappy weather that everyone is experiencing back in Colorado - all that snow and cold - I'm sure glad I picked this year to leave the winter. I'm not sure if this has been a normal summer here but most days are fine (sunny), breezy, and around 22 - 25 degrees. Every few days it will be partly cloudy and rain. We've had a couple days of heavy rain but nothing like the thunderstorms of the Colorado summer. I haven't even seen any lightning or heard any thunder. Christmas here was cool and cloudy - certainly not the beach weather we had been expecting. We've been told this is an unseasonable summer but who knows, guess we'll have to compare it next year. Anyway, if you are curious about what is happening from day to day you can check out the Met service site (its the same one I use) or the local weather station.
I've also been asked a lot about things I miss and things that are different. For this we have created a FAQ section to this web site. We have one page for our feedback after 3 months and another that we've recently updated with our thoughts at this point.
I know you all have been clamoring for an update on my new work life so I just finished creating an Advanced Personnel page that gives some details - I've even included a clip of my radio advertisement so check it out. [page removed]
I'm actually enjoying what I'm doing right now. No, it isn't big time corporate life and doesn't have all the nice perks like free soda, high end computers, a 401k plan, a clean bathroom, or even an air conditioned office but it does have some upsides. I'm pretty much my own boss and can prioritize my own day as opposed to it being dictated by others. I don't spend endless hours in absurd meetings or sifting through hundreds of emails. I don't have to develop numerous urgent reports that end up not being used for anything in particular. I can actually take my ideas and execute them quickly - no need to wait on approvals from others. Half the time I'm in the office in front of a computer, the rest I'm either meeting new applicants, prospecting for new clients, or reviewing needs of existing customers.
In the end I really feel like I'm doing something meaningful - there is much more satisfaction for me placing someone who needs a job in gainful employment than helping companies optimize their junk mail (i.e. Abacus, my previous employer). It's always good to change it up a bit and try a new challenge - this has definitely taken me out of my comfort zone a bit but has provided me the opportunity to experience many new things.
I'm still finding time to ride as well. My commute to work now is only about a mile as opposed to the twelve I was doing in Colorado but I've found some other things to make up for that. I've started up with racing on Tuesdays and doing some longer rides on Thursdays as well as the weekends. Cycling is huge here - just like in Boulder. The difference is that there are a lot more organized events here. Bunch rides on Monday, Wednesday, and Sunday. Races on Tuesday and Saturday (anyone can join).
The racing is pretty cool - like nothing I've done in the past. Basically 50-60 people are split among 4 different levels. I've been riding C grade and it is pretty hard core. Typically there are about 20 of us and after 2kms of easy riding everyone starts going all out. Our bunch usually averages about 37km/ hr (close to 24 mph) over 30km (18 miles). That may not seem like much but it sure feels like a lot. We've been running dual pacelines with the strongest taking more turns on the front. I've only gone twice but have been pretty tired after each. I've added a link to the results page, one of these days maybe my name will appear. Gotta do what I can to get ready for the Tour.
I've also been doing a bit more reading - it really helps that I'm not spending time reading textbooks and writing papers for my MBA. Check out what I've read and those I recommend on my book review page.
I'll spare you the details of the rest of my life - working out in the gym, TV (I've replaced all the hockey and football with old episodes of the Simpsons), updating the web-site, ironing shirts, cleaning the cat litter box and dabbling in some photography.
Now it's your turn, if I haven't heard from you in a while, let me know what you are up to.
A few weeks ago Don and I put our hats in the ring to become Nelson homeowners, officially starting the hunt for something to own and love. We went out looking at houses in a specific price range as we started to gather ideas and information on what is and is not available in our cute town. I was so excited at what we might be able to get and at the idea of having our own place.
By the end of the weekend, we were elated and relieved at our discovery and decision to not buy a house here in New Zealand at all, perhaps for as long as we are here (i.e., forever). What the **(BLEEP)** happened?
After our Saturday visit to several open houses and a house auction, it became clear just how much money we’d have to spend on purchasing a house that we really wanted. So, we headed home and started crunching numbers. Something was stuck in my head that my friend Jungle told me: buying doesn’t pay here; it isn’t a good investment when you add it all up. I thought he was crazy, and maybe he chalked it up to being a single guy who found it less affordable with only one income. I thought he was right about that, and wrong about the investment. Property in Nelson is some of the hottest in the country (and if you’ve seen that TV3 story linked on the front page, some of the hottest in the world too) so how on earth could purchasing a home here be a bad investment??
We did an analysis (how us!) of what medium-sized home loan would do to us and compared it to a rental scenario. The basic difference is that mortgage payments are very high, but rental payments can be much lower. Smart puppies like us could save the difference each month.
Using a loan amortization schedule, the interest paid on a home loan amount of $350k over the life of the full 25-year loan was staggering: $457k NZ (assuming current interest rates of 7.95%), well beyond the original loan price itself and not a penny of which is deductible for tax purposes in this country.
We looked at paying the loan off early, paying extra payments, doing all the tricks necessary to save that interest. None worked too well. The monthly payment would be about $2450NZ per month. We could manage this payment on our salaries, but did we really want to? A considerable amount of our disposable income was suddenly tied up into a mortgage. And, the reality is that we probably wouldn’t find a house that we want for that price—it’s likely we’d end up spending even more.
Another huge factor is that the differential in our salaries between NZ and the US: in Colorado our mortgage payment was for a 15 year loan (down to 12 now) and the actual payment made up 15% of our take-home pay. In NZ, our mortgage payment would be 40% + of our take home pay. How do families here with children and all of those additional costs do it??? We don’t know, other than to think they just have to ignore it. And New Zealand has one of the highest home ownership rates in the world, nearly 70%.
Then Jungle’s statement came to me again and Don and I compared purchasing (and having that home loan payment) versus renting over a 3, 5, 10 and 25 year horizon. Nice rentals here generally range between $1500 – 2000 per month, so that is a minimum monthly savings of between $900 – 400 over a mortgage. To that monthly savings, we added estimated cost of repairs, improvements, and rates (taxes) and then assumed we would put all that money it in a safe investment earning 7% (current savings account rates - this is also pretty amazing – home mortgage interest rates are currently running around 7.95% but you could also just put your $ in a savings account and earn 7% - not a huge gap there). Obviously there are a few unknowns such as future sale price and interest rates.
For example, assuming we purchased a $380k house and put $30k down. We now have a loan of $350k which roughly translates to a $2690/ month mortgage. After 3 years in the house our outlay is $97k payments + $30k down = $127k. We’d have to sell that house for $507k just to break even. This doesn’t assume taxes, repairs or improvements.
Now if we rent over the same period for $2000 (top end of the scale – really nice place), we’d pay $70k total. Assume we save the difference each month plus the down payment earning the minimum 7% (current savings account rates) we’d earn $67k; bottom line: we’re out $3000 for renting. If you assume a more realistic 12% return, you are in the black.
Obviously there are several assumptions in this. If you add in the cost of repairs, taxes, improvements to home ownership, the rental scenario looks heaps better. If you don’t put away your savings from renting, home ownership starts to look a bit better.
In our case, renting makes a lot more sense. Granted we won’t have an asset in our name but we will have additional flexibility. We can live in a larger place without having to invest heavily in remodeling. Renting also frees up a lot of disposable income that can be used for other things – specifically travel and savings.
Oh yeah, we forgot to tell you this one. You must forcibly refinance every five years, it’s required by lenders here! So even though we could start out at a low rate, our rate could bloom in five years and we’d be stuck—with a higher monthly payment and even larger chunks of money going to interest.
The good news in all this? You could make home ownership work to your advantage if you can afford to put down a very large sum, most times at least half the cost of the house. That would enable you to get the interest amounts to reasonable levels and your mortgage payment would be the equivalent of a rental payment—and you can continue to save. But who typically can afford this, even of those people you know? Who can put down $150k or more in Colorado to buy a $300k house? The same is true here, not too many people. But we may consider one day doing just this scenario. It will likely be the only one under which we buy. Why give away our hard-earned money to the banks??
For now, we are looking to move alright, right away. But we’ll be renting a new house, and hopefully very soon. You’ll be one of the first to know.
