Rip Off New Zealand ??

[foolsgold99]

I see threads from time to time on here and hear people talk about "rip off new zealand" and how people are out to milk them for money.

Personally I just don't see it, I guess it's all due to expectations, if people expect things to cost "X" and cost is "X" + 30% they claim rip off. I tend to think poor research and planning

I think that costs in NZ are upfront and honest, rather than being hidden in other places, for example bank charges. We pay about $10 - $15 a month is bank charges, do people think it's free for the banks, to process all these transactions ?? In the UK for example you wouldn't pay a transaction fee, does that make NZ a rip off ? No, a look at UK bank profits shows their getting their money, but they make it in different less transparent ways. Like offering 0.1% interest on a current account, in NZ a current account will pay a decent rate.

In the almost year I've spent here, I have yet to find a case where I've been ripped off because I'm a pom. My opinion is that costs in NZ are very transparent and upfront, and are at the point of use.

What do the rest of you think ??

[chips]

I think people feel ripped off as many of them see New Zealand as a "cheap " place to be. The perception of the land of milk and honey has gone. As have the $3- £1 days.
And it looks like business is screwed for a while , and the predictions are that the recession is going to be worse than 91.
The good news for you is that you might get more $-£. Great ,but there will be fewer jobs in industry and IT me thinks (MO)
As for banks ,you get used to it, eh.
Chips

[JCM]

Don't Pay Bank Fees
I have a cheque account with Kiwibank. Provided the balance is above $4,000 there are no fees. It pays 4 to 6.9% interest depending on how much money's in the account. http://www.kiwibank.co.nz/products/front_runner.stm

You can open an account from overseas http://www.kiwibank.co.nz/products/m...g_open_acc.stm

[Leccy-Lee]

I not yet able to comment on NZ (as not there yet!) But i cant actually see how it could ever be worse than "rip-off" britian can it?

[foolsgold99]

In terms of bank fees, we pay nearly nothing, we have an asb current account, a kiwi bank mortgage and a supabank savings account.

We have about 4 transactions a month, we pay our mortgage, we pay the credit card, we transfer to savings, we get some cash. All transactions are done on the credit card. This saves fees.

But that wasn't really my point, I guess it was more about a mindset of people feeling they're being ripped off. Some people seem to get indignant about paying for things differently than they are used to. My gut feel is that people who get indignant or angry about this kind of thing, aren't going to last in NZ, but the same would apply in France / US / Mars, some people aren't mentally cut out for being away from home. This is not a critisim, just an observation.

The land of milk and honey thing is funny, I first looked at NZ about 7 years back, and people told me that I could earn $25K a year in NZ and be well off. Depending on bonus I'll make between $85 - $100k, and on a single salary in a modest house in Auckland suburbs, with a wife and kid, we're in no way rich or well off.

NZ ain't that cheap, when you are earning NZD, if you can bring a lot of cash over with you, you'll be fine otherwise it's going to be hard. But that would be the same anywhere.

If you are still living in the UK, here's a simple question. "could you afford to buy the house you live in now ? Assuming you had no deposit, just on your salary could you get a mortgage to cover todays market value of your house ??"

[Avalon]

What do the rest of you think ??

Yes and no

Some things just dont justify the prices imho - but then the same can said anywhere I guess. I find it odd that its often cheaper to ship books in from amazon.co.uk for example than to go to whitcoulls (who by virtue of bulk shipping MUST be able to get books shipped here a lot cheaper than me as an individual - surely).

Things like petrol still seem really chaep to me - but we arent exactly earning a "normal" kiwi wage. I do feel that for most people - these costs must be prohibitive (but then that doesnt stop people driving gazillion litre 4WDs )

Bank Charges - have to utterly dissagree on that one Im afraid. The Uk banks may only give 0.1% on current accounts if that -BUT - you still end up with about 1p extra a month. Here - they may give you 4%+ - but they nick it back off you and then some in charges. If you are prepared to keep reasonable large sums in the bank (and why would I want to keep $4k in a current account at 4% when it can sit in a savings account at 7%?) you dont pay - but they have 4K of your money that the can use for whatever they want. Offering you those kind of interest rates and no fees just isnt enough for you lending then your money. Before we have the mortgage - not once did I mananage to earn anywhere near enough interets to even cover the fees - and believe me we were pretty good at fee-reduction.

I also utterly object to being charged to spend MY money. I dont care what they charge or why the do it. Its NOT THIER MONEY. Its MINE! That is just a principle thing - and at the end of the day no amount of justification for charges actually diminishes my feeling on that.

I tend to think poor research and planning

Id have to say - probably - and i think this is where we fell down. Although we are coping pretty well - I did get a shock - despite having been here twice before. Despite all the prep work we did - I had a feeling that we would probably have missed something - and it would be big. Turned out it was the cost of living. Coupled i think with the realisation that we really didnt want to have to cutail our standard of living "too" much.

I think people feel ripped off as many of them see New Zealand as a "cheap " place to be. The perception of the land of milk and honey has gone. As have the $3- £1 days.

Hopefully - this perception will be dulling a little thanks to boards like this. We felt that in hindsight - the information giving at Expo's was shall we say "massaged" to present NZ as exactly that- cheap. NZ stats cost of living figures are not even funny! And the problem with the 3-1 is that many goods are still priced at that - if not 4-1 or more - while the actual rate just doesnt justify it (you wont notice if you get into the rather good habit of NOt converting everything - it will drive you mad!) Having this problem with flights at the moment. It would cost £750 in the UK, but £1000 from here. From what I can see its because the 1-3 rate is being applied for the NZ price. Thats $625 difference - which is a LOT of money here.

When I actually sit down and look back on how much we ahve spent on things in the last year - it really is a mixed bunch of whether we feel we are paying more than we would have done in the UK, or less. There are many things we wont pay for here because we dont feel the price is justified by what you are getting. Gym membership is a good example. in other cases - ive found things Seem expensive - but then when I work it out - its actually rather cheap - food would be a good example. Cheap night at the cinema, decent wines.

So all in all - mixed feelings

[mossum]

nat west charges us £10 a month to have an advantage gold account

not to mention the fees we get slammed with when we fall into our overdraft

I thought the bank fees wer'nt too bad - just my pov .

I also think its important to stop comparing country to country - things cost whatever they do - where ever you live - you have to get into the living vs holidaying mindset in my opinion .

vic

[Avalon]

But that wasn't really my point, I guess it was more about a mindset of people feeling they're being ripped off. Some people seem to get indignant about paying for things differently than they are used to. My gut feel is that people who get indignant or angry about this kind of thing, aren't going to last in NZ, but the same would apply in France / US / Mars, some people aren't mentally cut out for being away from home. This is not a critisim, just an observation.

Well - im not really - but then If i was - there would be no challenge would there????

Whats better - to only emigrate if you know you are a "traveller" and used to different cultures - totally open minded (?) about all other cultures and ways of life and not have a care in the world about the new homeland - OR- do it anyway - despite not being comfortable with these things. Get angry and P'd off - and deal with it - learn from it and come out the other side.

I wonder if its exactly the people who "arent cut out" for it that get the most out of it.

Trust me - you CAN last in new zealand and not like everything that goes on here - I know many peopel that are doing it and have done for years. Ive managed 1 year so far. It may have been easier if I wasnt so annoyed about things - but hey - If i wanted an easy life Id have stayed in Ross on Wye!

[JCM]

why would I want to keep $4k in a current account at 4% when it can sit in a savings account at 7%?

4% interest, on $4,000, taxed at 33%, is $107.20

7% interest, on $4,000, taxed at 33%, is $187.40

If your bank fees are more than $80 each year ($6.66 per month) you'd be better off keeping $4,000 in your current account.

[Diny]

I don't think NZ is a 'rip off' country, it's not a charity, NZ banks & industry etc have to charge - everybody is out there to make money - including ourselves (isn't that why we have jobs?).

On the other hand, some 'products' in NZ are a stupid price compared to 'home'. For instance paint, how they justify the extortionate prices they charge I will never know. Having done abit of DIY and home decor of late I can report that I long for the UK prices. But on the other hand, I'm delighted with the cost of insurance over here, petrol is alot cheaper too than the UK. In fact there's a whole bunch of things which are more expensive and a whole bunch of things that are cheaper. Also a whole bunch of things which are just about the same. Swings and roundabouts.

As a final thought though, I can't see how thinking NZ can sometimes rip you off will lead to not lasting or succeeding here.

Diny