Two Americans emigrate to New Zealand from Colorado,
USA.
We talk about
our life in Nelson, New Zealand.
Based on our personal experience emigrating to New Zealand, in combination with some advice we were given--but not very much--here are some recommendations learned through trial and error that we can share with you if you are looking to emigrate to New Zealand, or perhaps overseas in general.
Ship or sell | Pets | Electric | Rent or buy | Jobs and resumes/CVs | Cost of living
We are often asked if we shipped all our items or if we sold them and came over with 'the clothes on our backs.' Information about shipping is difficult to come by, and figuring out whether or not to ship is even harder.
The first thing we did was investigate whether we should ship via container or not bother. Don's sister Lynn had moved to Europe a couple years prior. She decided to sell all her furniture and pack everything else she wanted to bring into boxes. They were shipped over on crates that were sealed at the port, outgoing, but when she got them, she discovered that her boxes had been mixed with other boxes and moved from crate to crate--she didn't have 'dedicated space' on the shipment--and apparently when you ship boxes in this way, you always mingle with other shipments. As a result, she had damage and loss.
We weren't sure we could fit what we wanted to bring in boxes, and we didn't like the thought of co-mingling our lives with other peoples' stuff. We looked into shipping containers and followed a few leads from information we researched online. Many kiwi immigrants recommended UPak-WeShip and Don began an investigation of shipping companies. Beware: some shipping companies are good at shipping stuff from one location to another. Other shipping companies are much more used to moving people and their things from one country to another. These are two very different tasks! We contacted a local Denver shipper and they were quite keen to give us information and quotes, but it became clear after awhile that they really didn't get the concept of a container on our doorstep, that we were going to have to adhere to export issues and immigration issues in a new country, and all of that. UPak-WeShip was very familiar with the process of exporting people to live in new countries. Don had very good service, they adhered to their original quote for a 20-foot shipping container, and they were always available to answer questions.
With an option for a 20-foot and 40-foot shipping container, we had no idea how large that might be and thus no concept of what we could fit into it. Well, that deserves some correction as Don is very good with these sort of spatial estimates and Angela is a complete dolt. So Don took charge ... yay. He determined that if we pared down, we could fit into a 20-foot container, so that is the route we took. We taped out the outline of the container's measurements in our basement, and into that we started placing our boxes and things within the boundaries. We also measured out the furniture and did a cubic spatial diagrammy thing (okay, yes, Don did this part) to make sure we would use up all of the vertical space as well.
Our Colorado home had three bedrooms, a loft, living and family rooms, a separate dining room and kitchen eating area, and a basement. For two people, we had a good deal of space, and we'd filled it up with stuff over the years. Deciding what we needed and what could go was a task--but one we were very excited to undertake. Paring down is probably one of the more freeing things you can do when you move. Relish this time and learn from it not to fill up space in your house with stuff! Always think: do I want to move this item one day.
UPak-WeShip quoted us US$7,000 for complete door-to-door service from Westminster (Denver), Colorado to Nelson, New Zealand for a 20-foot container. The quote included the truck that delivered the container to our door and picked it up, a long weekend (4 days) to pack it ourselves, the train to carry the container from Denver to Los Angeles, all port issues, arrival in Lyttleton outside of Christchurch, and delivery to our front door. We paid a bit extra for insurance, which is based on the value of your items. Estimate 15% of the value of your items for insurance.
Given this quote, and some of our own research, we decided to ship with a container. When we compared the quote of US$7,000 (NZ$11,500 at the time) to what it would cost us to purchase the furniture items we decided to take, it became a no brainer. Mattress sets alone would have cost us several thousand NZ dollars, about $5,000 for a king-size. We investigated couches and love seats and knew we'd spend another several thousand NZ dollars. And so just to replace a couple of items, we were talking crazy money. That was a very worthwhile exercise, done mostly by internet, phone calls, and talking to immigrants, and made our decision easy. Plus having familiar pieces around would feel more homey and cozy as we were in a strange place. We were going to bring 4 bikes for sure, and didn't want to manage that via airplane either.
While on holiday in New Zealand, it was quite clear to see that houses are much, much smaller. People may clutter them with curios and knick knacks in the same way as Americans (and everyone else), but there is far less space to do it in. That made the decision about WHAT to bring easy: we need to minimise the furniture for 2 or 3 rooms in a small 3-bedroom house. Only what is necessary and what we would actually use, not what we'd use to fill a room that no one else used. Essentials only. We brought our king-size bed (like we’d leave it behind anyway!), a large couch, a love seat, a chair, a rocker, one dresser, a few little tables, a filing cabinet, and our dining room table with chairs, bench and buffet.
Our plans to make sure we fit everything into the 20-footer went very well, and it all turned out fine. We packed everything very carefully, spending money on shipping supplies that turned out to be essential. We purchased about $500 worth of quality packing tape, cardboard corner protectors, bubble wrap, and silica packets to protect from moisture. You can do this online, as we did, and have them sent to you--gives you extra boxes!! We used Uline. Delicate things were very carefully packed and glass frames and mirrors had masking tape across them to make sure if they broke the glass wouldn't shatter everywhere. Adhering to instructions proved very good advice, as we only found 2 broken items upon arrival, one that was fixable and the other that was also usable.
Immigration NZ and Biosecurity require you have a list of every item in your container; we tracked every box and item with a numbering system, itemized contents on the list, and put our last names on every box as well. Aside from the requirement to do this, we found it very handy to have this shipping list on the other side when all our boxes arrived and we had to prioritise which should be opened and which could stay packed for the time being.
Whether or not you decide to take your pets, if you are moving them from any of the 50 states except Hawaii, you're going to have to go through a quarantine process. Hawaii is rabies-free and doesn't have the same rules as the rest of the states do. New Zealand has a 30-day quarantine requirement and there are several facilities across both islands that are approved quarantine facilities.
In September 2005 soon after we were selected from the EOI pool, we contacted a pet transport service in Los Angeles recommended by others who emigrated to New Zealand, International Pet Transport (IPT). The staff was helpful in providing information and a basic quote on the cost of every service they could provide, the most important of which is to interface directly with the Biosecurity and Ministry of Agriculture and Forestry departments of the New Zealand government responsible for monitoring the import of animals into the country.
The process really takes about 6-9 months of time because you have to manage your pet’s rabies titre tests over a 6-month window prior to shipment and have a bunch of other checkups done in the meantime.
What we had to do immediately was have our cats micro-chipped, examined, and start the process to get the rabies titre tests. Both cats went off to the vet a few times for this in September 2005. The veterinary costs for this ran about US$150 for one cat and included annual physicals and shots, also required at the early stage of the import process. This same process has to be repeated just before pet travel, so another US$150 would be necessary.
To transport one cat pretty much from the beginning of the process through to picking up and delivery to the quarantine facility, we would pay about US$1500 to the transport service (two cats quoted at US$2,500 plus double all vet costs). This is the cost to get your cat from LOS ANGELES to the quarantine facility destination. If you don't live in Los Angeles -- and we lived in Denver -- you'll have to pay the extra cost to get your pet somehow to Los Angeles. Most airlines we contacted charged US$100 to take a pet, in addition to an individual's airline ticket. They travel in the luggage area on the plane, and it is loud, scary, and unpleasant.
Quarantine of one cat for 30 days and all the required tests, exams, and clearances needed was going to cost an additional US$1000. We quarantined at the Canterbury Quarantine Services facility and highly recommend them, they were so helpful and treated Livvy very well.
Further vet costs at home amounted to close to US$300, so you're looking at quite a commitment in money to bring pets.
Dogs cost more, and require many more tests. I would recommend a ballpark upscale in all above costs by at least 25% for dogs, but each of the facilities you contact will be able to itemise out the costs for dogs and cats alike.
You can read more details about our highs and lows of moving our pets in our immigration story.
Neither of us has anything but a basic knowledge of electricity. So this is general advice, and it points you in the direction to get further advice.
First, you will need a plug adapter for anything coming from the States. This doesn’t convert any power but will simply allow you to plug in items from the US into the NZ sockets. Here is what the socket in NZ looks like: http://kropla.com/!i.htm and here is a chart on electricity around the world: http://kropla.com/electric2.htm
Second, and more importantly, is the power conversion. The US runs anywhere between 100 and 120 Volt and 60 Hertz. NZ is 230 to 240 Volt and 50 Hertz. Both the voltage and frequency (hertz) is important. Voltage can be converted, hertz cannot. The fact that you can’t convert hertz is key when dealing with anything you might want to bring from the States that has a motor/fan/heating element to it (food processor, hair dryer, coffee maker, etc); things with circuitry aren’t an issue. Basically everything will work once voltage is converted but the non-circuitry items will not last because the motor isn’t built to handle the difference in hertz.
There seems to be no way to know how long a certain item will last. We decided not to bother and just sold all kitchen and bathroom appliances, lamps, stereo equipment, and bought new here. We simply didn’t want to bring a bunch of stuff that might only last a few months. We brought our computer, a printer, and an external hard drive and no other electrical item. Leave your things: better that someone else gets some long term use out of it. (More on this at: http://www.voltageconverters.com/faq.htm#10)
All electrical equipment will have both volts and hertz listed somewhere on them. Best case is something like a computer that will cover the entire range: it will say 100-240V, 50-60Hz. In these cases, you're set as all you will need is a plug adapter.
Most US appliances will list 110v and 60Hz and will therefore need a converter or transformer – I’m not sure of the difference but I think the transformer is for longer term use (running equipment for hours rather than minutes). Good explanation of the converter v transformer at http://www.laptoptravel.com/Article.aspx?ID=339.
The converters aren’t that expensive but aren’t the smallest things so we decided to get one along with a power strip and run anything we needed to off of that. We ended up using it for the pump for our air mattress that we used for our first couple months. There are different converter levels that depend on the wattage a certain item uses so you will also need to know that (listed in same spot as the other electrical info). So if something is 180 watt, might be good to get a 200 watt converter. We have only used one recently for our USB port and therefore bought accordingly. Review the sites I’ve listed below for more info.
TV’s are another unique case as you have to deal with the format difference as well as the power difference – PAL vs NTSC. I didn’t research this much either as we made a decision early on not to bring our TV due to its size and all the conversion issues.
Additional Links:
Overall electrical info: http://kropla.com/electric.htm
Places to buy: www.voltageconverters.com
Where to buy converters/ transformers: http://www.voltageconverters.com/
The universal recommendation we have always heard, and agree with, is to rent for at least the first year you are here. You won't know everything you need to know about a city or town until you actually live there: neighborhoods to look at or avoid, schools, transportation options, where you'll be working, etc. Rents are cheap enough and you can deal with tossing rent money down the drain for a year just to get your feet under you. If your main goal is to buy a home, you'll also have that time to understand how the financial transactions work, what is involved with the legal process of buying a house (far easier and takes about 2 weeks typically), and what is involved with Council requirements of homeowners.
We have decided that real estate in New Zealand is vastly overpriced and too high to buy into the market right now. Interest rates are about the same for mortgages as they are for savings accounts -- huh? We have undergone a financial analysis (aren't we nerds) and determined that we will be better off in the long run renting a home than owning a home. We aren't the only ones who think this! Another American has run the numbers, and our Kiwi financial adviser concurs with our position and offers even more evidence to support our claim: kiwi houses don't really appreciate over the long run! She claims that homes over a 30-year mortgage run only really appreciate 3-4 percent. If you didn't get into the housing market before the boom of the past 10 years, you're going to find yourself hurting because it's pretty painful now, to immigrant and kiwi alike.
We live in the third most expensive market in the country. House prices here don't ever seem to drop, they rise rise rise, then they stop rising, and then they start rising again. Auckland has been going crazy in the past 5-7 years, and the average home price there is over NZ$400k, and that's if you're living well outside of the main city in suburbia.
The average home price in Nelson is about NZ$320k. What's that you say, take the conversion in US dollars and it'll look a lot more feasible? Think again. First, I'll challenge you to find a suitable home in Nelson for NZ$320k; they are a dime a dozen and you'll be compromising somehow. You'll be fixing it up with another NZ$20k easily. Second, even at NZ$320k, you're talking US$240k which is entirely feasible on a US dollar income. We made good money in the States and you probably are too! But you're not going to make that money here in New Zealand. The average wage throughout the country is in the low NZ$40k range. Consider the income tax structure and you're taking home 80% of that figure anyway. Try paying a NZ$300k mortgage (if you put down some money) on one or two incomes at that average wage. It's bloody hard and it hurts. Estimates these days are that kiwis are spending on average 70% of their income on their mortgage. Doesn't leave a lot left over for family or fun stuff.
We've chosen the path of liquidity, low responsibility, and access to our money! Don't be fooled, we're not spending all our income; in fact, we are saving money (and still paying our Colorado mortgage as well) and if you can rent a house with a monthly payment about half what a mortgage payment would be, you can save money and still have the flexible lifestyle you want.
Something to consider.
Read more detail in a 2007 blog entry about why Don and Angela have chosen to rent longer term, from a purely financial perspective.
Jobs in the United States are very specialised and often specific. If you emigrate to New Zealand, you may find comparable work in Auckland, a city of about 2 million. You may also find a comparable position in Wellington, the capital, or Christchurch. By all our experience -- and Don was a recruitment consultant for 18 months -- specialised positions don't often translate to New Zealand. If you don't already have a job before emigrating, you will be much more successful in finding work if you can fill a generalist role; the wider your experience, the better.
If you plan to move to a smaller city (Hamilton, Dunedin, Nelson, etc.), you'll find the economy made up of many small business, most of those family-run. Every member of the family works for the business, and the office manager takes on the roles of administrator, payroll clerk, accountant, and receptionist. Generalist, generalist, generalist.
Trades are big: welding, building, carpentry, auto mechanics, hands-on types of jobs. These jobs you can pretty much get anywhere, but small towns will want you more, and probably pay you less.
A good step would be to visit a temporary employment agency, especially if it's your first job in the country. Companies are sometimes skittish about being the first to hire a recent immigrant, and doing temporary work for awhile can garner you a good employment record and a kiwi reference.
They don't really use resumes as such in New Zealand, but more of a CV that discusses personal information like basic family info and hobbies. Sometimes they can include photographs of you. They are often 2-4 pages. Obtain letters of reference before you leave, but more than likely you'll be asked to supply references (here they are called referees) who can be reached by email. Make sure you have these contacts in place when you leave. Having said all this, CVs are in use, but not required. Resumes can be used, but don't be surprised if they ask for additional information.
If you are coming from a specialised job, be sure to describe on your resume the more general aspects of your work--and leave out the specialised language! They won't understand what is meant, especially in smaller cities. You won't find specialised marketing positions in a smaller town like Nelson or Hamilton, or that you strategised toward a successful campaign. Find the general points of your marketing work and play those up, you'll appeal to a wider audience. It's highly unlikely that you'll find a specialised position in this country unless you live in one of the big 3 cities.
You most likely will sign and employment contract with whomever you work, it's standard practise. There is no such thing as a menu of benefits that comes with an offer of employment; health insurance is not offered because of the socialised system, unless an employer has an agreement to offer a group discount on private insurance which functions like a secondary insurance; it's optional. You most likely will not have the opportunity to participate in a retirement savings programme, but that's somewhat moot now as KiwiSaver is in full force (see a blog entry for more information on KiwiSaver).
No doubt if you're interested in living in New Zealand and you've looked into it, or you've been here on holiday, you are well aware that it costs more to live here. Think about it: it's two islands in the middle of nowhere, really. Getting things here is expensive and keeping things here is also expensive (when they'd rather export them). The population is vastly smaller so the proportional costs are higher per capita.
The cost of living is much higher here than in the United States. We researched our ability to live on two incomes of minimum wage, currently at NZ$11.25/hour (US$8.50 ish), to ensure that we could make it for awhile until other work could be found. The average kiwi salary is in the low NZ$40k range, and plan on taking home 80% of that because of taxes. The tax structure on income is pretty straightforward:
EFFECTIVE 1 OCTOBER 2008 (changes are coming 1 April 2009)
$0 - $14,000, tax rate is 12.5%
$14,001 -
$40,000, tax rate is 21%
$40,001 - $70,000, tax rate is 33%
$70,001 and over, tax rate is 39%
If you make $100,000, the first 14k is taxed at the lowest rate, the next 26k taxed at the 21% rate, the next 30k at the 33% rate, and the REST at highest rate. It's not the case that all your income is taxed at the highest rate if your income is in that range.
(these changes are coming 1 April 2009)
$0 - $14,000, tax rate is 12.5%
$14,001 -
$48,000, tax rate is 21%
$48,001 - $70,000, tax rate is 33%
$70,001 and over, tax rate is 38%
We didn't think we'd have trouble finding minimum wage work, but we had trouble finding out what things cost to know if we could pay our bills! Here's some help in that regard, with all figures in New Zealand dollars.
Rents = small houses, $300/week (multiply by 52 weeks and divide by 12 to get a montly equivalent, but things here are listed BY WEEK); larger houses with a bit more to them $400/week.
Utilities = electic and gas bills range from $75 per month in summer with no A/C to $300/month in winter
Telephone = land lines are about $50/month and if you do cell phones (and who doesn't in this country) you can pay a monthly flat fee or buy a phone and pay for whatever you use. We pay approximately $40-50/month for cell phone service and own both phones.
Internet = we pay for broadband, $50/month. worth it and we simply prefer it. Dialup can cost about $30/month but better to research for real. And it's soooooo slow.
Groceries = plan on $500/mo for two people base and we've heard if you've got a family, 2 kids perhaps, not unrealistic to spend $1500/mo. We know a couple who spends $500/WEEK with 2 kids.
Cable = if you subscribe to Sky TV, the only cable service around, you'll pay about $50/month
Petrol / Gasoline = with costs going up around the world, you'll be counting yourself lucky to live in the US because petrol prices there are the cheapest around. New Zealand prices are similar to Europe and are priced per litre. Currently they are $1.75/litre so MULTIPLY that by FOUR. Yes, $7/gallon. That's the equivalent of US$5.25 per gallon. Prices are high. People don't drive everywhere, they bike and walk much more than in the States.
Entertainment and dining out = eating out is expensive. It's not unusual to pay upwards of $10 for lunch and more likely you'd pay $15. Dinners are between $15 and $25 per meal. A coffee at Starbucks is $4, a sandwich at Subway is $10 for footlong. You'll easily spend $75 eating out for 2 with drinks. Movies are $13, renting videos is $6-9 for new releases depending on how new, and $4 for old movies. We used to subscribe to Netflix and pay US$17/month to have 3 movies out at a time, but unlimited numbers. We subscribe to the same service here and pay $38/month, or US$29.
One thing to keep in mind: in the States, you purchase products and then sales tax is added onto the price as you check out, so the prices of items are never really what you pay for them. Most states you'll add 8 - 10 percent into your total purchase of nearly everything save groceries.
New Zealand doesn't do that. We have what is called GST - goods and services tax. Every product has this tax already built into the purchase price, as does every service including utilities, petrol, dry cleaning, etc. The GST rate is currently 12.5%. So if you're comparing apples to apples, be sure to deduct this tax before converting to compare to US prices, or add in sales tax to US goods.
Thus it might appear that things cost more here, but you have to remember that the tax is built in.
We find the process far easier in New Zealand, namely because the prices of items is what you see on the tag, no unrealised tax!
