Jobs & Money Detail
The cost to emigrate to New Zealand
Ever wondered how the emigration process is going to effect your wallet? Hanna Lindon takes a look at the costs every emigrant needs to budget for
Every emigrant has a different approach to organising their finances. Some, like Paul and Juliet Harper, choose to "look into the move but not too deeply into the financial aspect of it" – they like to take the plunge without testing the water first. Others are reluctant to make any big decisions without a thorough analysis of the financial consequences first.
But, unless you've got a bulging Swiss bank account and a sure-fire job waiting for you in New Zealand, it's wise to sketch out a budget before you emigrate. There are the obvious costs of emigration, of course – paying for your visa, selling the house, transporting your luggage and shelling out for medicals and police checks – but you should also be aware of hidden costs. These can include anything from paying off your debts in Britain to budgeting for different living costs in New Zealand. "People think things are cheaper in New Zealand and they budget for that, but in fact it isn't the case," says Juliet. "Interest rates are higher, bank charges still exist – ask for a 0 per cent balance on your credit card and you may as well have asked to meet Elvis. "Food prices are high with the absence of 'Buy One Get One Free' offers and half-price deals. They were tried in one supermarket four years ago, but most Kiwi's didn't trust the offer and thought there was a catch. "Schools fees are encouraged to be paid. Broadband and Sky TV are higher. House prices are climbing and charges to rent a property are high. Medical and dental fees can be high, with insurance policies required," she adds.
The other thing that it's important to plan for is emergency situations. What if your first Expression of Interest (EoI) is rejected and you need to submit a second application? What if the shipping takes longer than expected and you need to hire or buy essential items of furniture? What if your application is delayed and you need to rent in the UK for a few months after selling your house? It is advisable to budget for scenarios beyond your control. Last but not least, there's the first few months in New Zealand to plan for. Unless you have a firm job offer, you should budget for at least three months of job hunting. This will mean not only living costs, but also one-off expenses such as new school uniforms, organisational join-up fees, etcetera.
Remember that no budget is the same – so if you know somebody who saved up £50,000 before they emigrated, that doesn't mean that you have to. As long as you plan carefully, budget well, and have a good awareness of your needs, emigration can be managed on a relatively modest income. Developing a budget will allow you to spot hidden costs, eliminate unnecessary pay-outs and calculate how much you need to save and how long you need to save for.
Sam Simpson is one immigrant who benefited from developing a budget. Once she knew how much she needed, she was able to cut down on living costs and save the necessary money in a year. "We wanted to change our lives so badly that we worked hard, and did manage to pay off all our debts, get together savings and pay our emigration costs of £3,800 in total – all in a year," she says."
Here's an idea of the costs you will need to take into account while developing your emigration budget.
Visas
The cost of a visa will vary depending on what category you are applying under. To submit a postal EoI for the Skilled Migrant Category you will need to pay NZ$500. Online it will cost you NZ$400. The investor visa EoI costs NZ$3,400 to submit, the family visa NZ$1,200 and the residence to work visa NZ$1,200. Most applicants will also need to submit medicals certificates, and the cost of these will vary depending on your doctor.
Shipping
The shipping for an average family costs around £3,500. You may also be required to pay customs inspection charges at the other end. Costs will depend on where you are moving to in New Zealand and which removal company you employ.
Insurance
You may not take out travel insurance for a normal holiday, but it's important if you are emigrating. Emigrants are generally carrying more luggage and valuables, and will be more severely effected by any losses and delays. You should also seriously consider taking out marine insurance for the goods you ship.
Flights
Airfares are an unavoidable cost of emigrating. Minimise the amount you pay out by using a flight comparison site and booking as far in advance as possible. Bear in mind that your airfare will be cheaper if you travel in off-season times.
Accommodation
It's generally advisable to book a hotel for a few days close to your place of arrival in New Zealand. It will give you a chance to recuperate, explore, and search for rental accommodation. You may also need hotel accommodation in the UK if there is a gap between selling your house and flying to New Zealand. Rental accommodation will also be needed in New Zealand while you search for a place to buy.
Transport
Think about how you're going to get around once you arrive in New Zealand. Will you hire a car? Buy your own car straight away? Or perhaps you're intending to rely on public transport? Whichever it is, make sure you factor it into your budget.
Living costs
Even if you have a job lined up in New Zealand, you will need to budget for living costs for the first few weeks until you are paid. If not, make sure you allow enough time for job searching after arrival. One off expenses also need to be accounted for.
Agent charges
If you decide to use an agent then you can expect to pay anything up to around £5,000 for help with your application. It's a good idea to compare agent prices before committing yourself – but remember that it's more important to choose a reputable agent than to choose the best bargain.
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