Video summary
The video explores the often misunderstood financial reality of moving from the United States to New Zealand, emphasizing that while salaries appear lower when converted to US dollars, the cost of living in New Zealand is similarly high relative to local wages. The speaker clarifies that comparing prices directly between currencies is misleading because residents earn and spend New Zealand dollars locally. Both nations face expensive housing markets where million-dollar properties are common near city centers, though costs can be managed by choosing older homes or living further out, as there are no longer significant bargains available anywhere.
Daily expenses present a mixed picture where certain items like fresh produce, furniture, and moving services carry premium costs, particularly for goods not grown locally or shipped from afar. However, these higher prices in categories like food and gas are often offset by the absence of massive healthcare bills and complex insurance systems found in the US. The speaker notes that while grocery prices can be steep, the overall lifestyle shifts—such as walking more instead of driving long distances—and a reduction in unnecessary consumer spending help balance the budget, making the long-term investment of living in New Zealand potentially cheaper despite the initial shock of moving taxes and high furniture costs.
A critical logistical hurdle highlighted is the necessity of opening a bank account before leaving the US to facilitate payroll setup and obtaining a tax number from the Inland Revenue Department. The transcript also touches on the fluctuating exchange rate, noting that while rates have shifted over time, the fundamental economic comparison remains one where high costs in both countries tend to neutralize each other. Ultimately, the video concludes that for those considering a move, the first step is not endless research but rather determining eligibility through specific pathways, as understanding the process and securing proper financial infrastructure is essential before attempting to relocate.
Read the full video transcript
When you look at the exchange rate
between US dollars and New Zealand
dollars, you're going to be shocked.
The salary that you would make in New
Zealand when you convert it to US
dollars will look shocking to you.
>> Yeah.
>> But the point is
it's the New Zealand salary relative to
the cost of living in New Zealand.
>> People are always asking me that
question like, "How does the price
compare?" And I always tell them like,
"You can't look at it like US dollar to
New Zealand." Cuz in New Zealand you're
making New Zealand dollars and you are
spending you New Zealand dollars in the
US the same.
>> New Zealand's
>> not cheap.
>> Not
>> cheap place to live.
>> Neither is Washington D.C.
>> Property is expensive everywhere.
>> Million dollar properties are just all
over the place in D.C.
>> Million dollar properties are all over
the place in New Zealand, right? I mean,
depending on where you live, but if you
live in near a city center,
>> it just is what it is.
>> You can get things that are less
expensive if you live farther out or you
get something older,
>> but
>> there's not a, you know, $50,000 bargain
to be had or a $100,000 bargain to be
had
>> anywhere anymore.
>> My first move,
>> I researched forever the moving company
and I, you know, I was very diligent
about it and I got a company and then
they got and then they got to the border
in L.A. and were like, "It's another
$750 for us to move your stuff."
>> Cuz that's what we've heard. We heard,
"Well, the food is so expensive."
>> You know, it's relative. Back in
Minnesota, right, in order to get
avocado, right, you're getting it from
Mexico and you're paying a premium for
that in the winter,
>> [music]
>> right, the dead of winter in Minnesota.
>> Um so, getting fresh produce is it's
relative. We're
>> We're um you know, we're looking at
>> [music]
>> We've been going to Countdown
>> and Pack and Save is the other one that
we've been utilizing a lot of
>> with three boys and we're right in
within budget of what we
>> figured we would be. So, again, it's
>> I I think it's pretty close one to one
>> in the US, you know, we had the local
Costco.
>> We could go and you could get a big, you
know, 2-lb
>> package of strawberries.
>> anytime.
>> Yeah, strawberries anytime. You just
can't get those here like that. What
we've learned is eat the things that are
in season. I think you've said that,
too. We went and bought a, you know, a
little miniature espresso machine. We
kind of added it up. It's like, okay,
you get your own espresso machine, do
you pay $6 for a cup of coffee every
day?
Or do you make your own?
>> So, yeah, you're spending more on rent
or a property. You're spending more on
food. You're spending more on gas. But,
you're also not spending that much on
healthcare, you know, which is a huge
expense in the US. And the taxes are a
little bit different. And it's just,
yeah, so to me it felt like quite a
wash.
>> The GP tells you how much an office
visit is, like before you go. And they
have different prices, like some are
like $85 visits, some are $70 visits.
Like,
you can
choose.
>> Here's a concept. What's the price for
what I'm getting? Instead of like, we
have insurance companies involved. Like,
well, we don't know. We got to charge
$8,000 to hopefully get a thousand. You
know, there's no There's no logic. You
just walk out with no bill. It was like,
wait a minute. What? Okay, quick break
and we'll get right back to it. If
you've been watching this and you've
been thinking about moving to New
Zealand, I know where you're at. You've
been researching it for a while. You
actually don't really know where to
start. And I'm here to help because that
is exactly what I do. I moved my family
of six from the US to New Zealand in
2013. And for the last 6 years, I've
helped other Americans do the same
thing. So, most people go about it
wrong. And I'm here to tell you that the
first step for you is to take a free
eligibility quiz. I have it on my
website, kiwi-americans.com. I'll put
the link in the description below. But,
that's where you start. Number one,
let's find out if you're eligible. And
if we think that you might have a
pathway, I will then invite you to a
free webinar where you'll find out the
process to actually [music] make the
move to New Zealand. So, start there.
That is your best start. Stop
researching. You need to know, first of
all, if you're eligible and clarity
around the process,
let's get back to it.
>> So, that whole safety net I felt like I
didn't have in Hawaii I have here.
>> You have here?
>> I have we have the universal health
care. I can be self-employed.
>> We don't drive as far, we walk a lot.
So, you know, it kind of turns out to be
the same. And while groceries are
expensive, there's just a lot of other
stuff you don't spend your money on. It
just balances out because I mean maybe
we're not buying crap we didn't need
anyway.
>> And it wasn't until we really started
trying to save for our first home that I
realized,
>> [music]
>> yes I earn less money, but the amount of
things I don't feel like I need here.
>> Oh, that is a great point.
>> It's enormous. I mean like you still buy
things and they're really expensive, but
the expectation isn't that next week
you're going to go find something else
that you also want to buy.
>> When we talk about like the expenses of
moving, I really do think the moving tax
is the most major one because
you know, I'm sure that you've given
this a lot of thought over the years,
but I I really it seems to me that the
long-term investment of living here it
does come out cheaper to live in New
Zealand. Yes, some things are more
expensive, but other things are much
much cheaper. But, the thing that's
always going to be there is that moving
tax. It is expensive to move.
>> Like beds aren't cheap here. I think
that was the furniture is just not cheap
and we were even looking at, okay, do
some of the American companies ship over
here and they don't. They either don't
at all or it's it's so incredibly
expensive it's
>> We brought things that we knew we were
going to use a lot or we really liked or
things that we we liked, but usually the
things that we didn't think we could get
here or the cost of moving the house
over
it was going to cost us at least that
much to furnish a new place anyway.
>> I had started changing money before we
got here. So, I mean I got as high as
1.78
at one point and now it's at about 1.67.
>> [music]
>> So.
>> Yeah, that's that's a big difference
when you're moving, you know,
significant amount.
>> Opening a bank account before you leave
the US is absolutely critical. You need
to do that because you need to give your
bank account to your new employer in New
Zealand to get on the payroll to
actually get paid. You need a bank
account in New Zealand before you can
apply for what's called an IRD number,
your tax number from New Zealand's
Inland Revenue.
You need a bank account to to to