New Zealand - The Good, The Bad and The Ugly.

[patches]

I think that SA is a general exception when it comes to cars - no-where do people spend as much of their income on a car as Jhbger will happily do.

 

The interesting thing is that although NZ (Auckland?) is a maritime environment, no body cares for their cars but they don't seem to rust.  Get hammered by the UV and and have paint damage, but you don't see much rust.  Although that might be a WOF thing.

 

However, I've seen lichen growing on cars here (pretty regularly), which goes to show how often they are washed...!!

 

You even look at company execs here, and they're driving nothing like what I used to see in SA.  Worked for Discovery for a while, "bring your play car to work on Fridays" used to be a bit of an eye-opener.

 

That said, there are more supercars on the suburban roads here than I ever saw in SA - Lambos, McLarens the lot.  Mustangs are like ticks...  I wonder how they raised the capital - I'm assuming riding the property market...

 

Yeah, I too wonder when one sees $100k+ cars cruising around Auckland like they're Mr Delivery.

 

There could be a few factors to this:

 

1. I think that Auckland is definitely a little more image focused than the rest of NZ. Much like Sydney is in Aus (some super flashy cars cruising around there). One tends to see just as many (if not more) new S and RS Audis than new base models.

 

2. As you mention, property ownership could have a big influence on this. Between us and our close group of friends (all young professional couples, between 30 and 35), all only have 1 car per household, and none of those cars were purchased for over $15k. We are all paying mortgages, however if we were 5-10yrs older and purchased said properties around 2012 or earlier, then the mortgages would be a fraction (or even paid off) and it would be a lot easier to redirect disposable income into a $100k+ car.

 

And that's just accounting for owners of single properties. Auckland would have a number of people with multiple investment properties, purchased a decade ago (or more) and have heaps of excess cash to buy luxury vehicles (and boats).

 

That said, compared to SA, even the flashy Jaffas are still unlikely t spend more than 10% of the value of their house on a car, whereas a showy Joburger wouldn't flinch at spending north of 25% on a luxury vehicle. (yes, I know one has to factor in that houses here considerably more expensive).

 

3. Spoilt kids. Auckland has no shortage of sub-30yr olds cruising around in super flashy cars (from AMG Mercs, to McLarens and Bentleys), purchased with mommy & daddy's money. Whilst it's not as extreme as portrayed by the Singapoean set movie, the term "Crazy Rich Asians" is definitely applicable in many of these cases.

 

All the above factors considered though, the income-to-car-value ratio in Auckland (of the purchaser, not the driver... damn trust fund kids), is still far below that of the middle-to-upper class in JHB.

Edited October 8, 2020 by patches

[patches]

My car is frequently hijacked by spiders and gets covered in spiderwebs.

 

Kids have resorted to naming them. Fred lives in the left wing mirror.

 

Spiderwebs right! No shortage of spiderwebs in NZ. Fortunately though, no really nasty spiders (like in Aus).

 

Speaking of invertebrates (and while trying to exercise willpower not to scratch my ankle)...

 

SAND FLIES!!!

 

One of the definite bads in NZ.

 

Mozzie bites are one thing. Sand flies (especially down on the South Island) are another. The itchiness can last for a month!

[davetapson]

Talking about disposable income and drive your boat to work day, I saw one of these rock out of the sea at Takapuna, and head off up the road.

I need one. 

[patches]

Talking about disposable income and drive your boat to work day, I saw one of these rock out of the sea at Takapuna, and head off up the road.

 

I need one. 

 

Hahaha, I wonder what a traffic cop will say if you get pulled over while cruising the suburbs like Spongebob in his driving test,

 

 

Those boats also remind me of the Rachel Hunter/Northland Air New Zealand Safety video. There was a snippet in that where they head from the beach into the water on one of those.

[davetapson]

Haha - that's classic.  Had to scratch it out as I've yet to do an Air NZ flight - first time I've watched a safety video through in years - although imagine this would become ignorable after enough times.

 

Hosking with his mouth shut - that's a first!
 

[patches]

Haha - that's classic.  Had to scratch it out as I've yet to do an Air NZ flight - first time I've watched a safety video through in years - although imagine this would become ignorable after enough times.

 

Hosking with his mouth shut - that's a first!

 

 

Oh yeah, the Air NZ safety videos are quite novel... at first. But like you guessed, they get a bit old after watching the same one a dozen times or so.

 

They used to change them every quarter, but between Covid, and some videos not ageing well (like the 2019 RWC All Blacks one, or the one the stupid It's Kiwi Safety one), they revert back to old trusty ones (like the Rachel Hunter/Northland one previously mentioned).

 

They've had all sorts. Multiple LotR versions, MIB, Richard Simmons, Sports Illustrated swimsuit, Antarctica, and many more.

[patches]

Haha - that's classic.  Had to scratch it out as I've yet to do an Air NZ flight - first time I've watched a safety video through in years - although imagine this would become ignorable after enough times.

 

Hosking with his mouth shut - that's a first!

 

 

From what I remember, Hosking didn't make the final cut that was actually shown on flights

[Wayne Potgieter]

From what I remember, Hosking didn't make the final cut that was actually shown on flights

thank the lord for small mercies

[Steven Knoetze (sk27)]

If you're referring to the episode of Grand Designs NZ where they built one out West Melton way (just out side of Christchurch)... that was pretty hideous!

 

 

 

That's the one yes, those poor people. And, yes, it is hideous......

I take my het off to the guy though, he put in the effort, I just don't think he managed the project well at all. It got away from him pretty quickly!!

[Hairy]

Yeah, I too wonder when one sees $100k+ cars cruising around Auckland like they're Mr Delivery.

 

There could be a few factors to this:

 

1. I think that Auckland is definitely a little more image focused than the rest of NZ. Much like Sydney is in Aus (some super flashy cars cruising around there). One tends to see just as many (if not more) new S and RS Audis than new base models.

 

2. As you mention, property ownership could have a big influence on this. Between us and our close group of friends (all young professional couples, between 30 and 35), all only have 1 car per household, and none of those cars were purchased for over $15k. We are all paying mortgages, however if we were 5-10yrs older and purchased said properties around 2012 or earlier, then the mortgages would be a fraction (or even paid off) and it would be a lot easier to redirect disposable income into a $100k+ car.

 

And that's just accounting for owners of single properties. Auckland would have a number of people with multiple investment properties, purchased a decade ago (or more) and have heaps of excess cash to buy luxury vehicles (and boats).

 

That said, compared to SA, even the flashy Jaffas are still unlikely t spend more than 10% of the value of their house on a car, whereas a showy Joburger wouldn't flinch at spending north of 25% on a luxury vehicle. (yes, I know one has to factor in that houses here considerably more expensive).

 

3. Spoilt kids. Auckland has no shortage of sub-30yr olds cruising around in super flashy cars (from AMG Mercs, to McLarens and Bentleys), purchased with mommy & daddy's money. Whilst it's not as extreme as portrayed by the Singapoean set movie, the term "Crazy Rich Asians" is definitely applicable in many of these cases.

 

All the above factors considered though, the income-to-car-value ratio in Auckland (of the purchaser, not the driver... damn trust fund kids), is still far below that of the middle-to-upper class in JHB.

I have seen a certain couple who's daughter used to go to school with my son (they lived/rented in our village) who were complaining that they would never be able to afford to buy as the deposits were way too much.

 

What they did not mention is that they both have brand new cars every 3 years max. and that these are very expensive cars, and they are always dressed in new brand clothing head to toe .... I also assume they are both spending a good bit of money at the hairdresser and beauty salons every month.

 

Our cars normally hang around for 10-12 years and would be considered basic.

 

People need to change their views on what is important for them in life and then accept this path. This lot chose to be flashy and then complain they do not have money to save for a house deposit ..... 

[Spurs]

While we're doing some comparisons between income and spending between SA and NZ, how would you guys see salaries compared like for like between the country's.

 

I saw above mention of R750k would roughly translate to R1.2M ($110k) in NZ.  Not sure if this was just used for the purposes of the example, but what are your guys thoughts on this?  I'm sure it would differ from industry to industry.

[MTBeer]

I have seen a certain couple who's daughter used to go to school with my son (they lived/rented in our village) who were complaining that they would never be able to afford to buy as the deposits were way too much.

 

What they did not mention is that they both have brand new cars every 3 years max. and that these are very expensive cars, and they are always dressed in new brand clothing head to toe .... I also assume they are both spending a good bit of money at the hairdresser and beauty salons every month.

 

Our cars normally hang around for 10-12 years and would be considered basic.

 

People need to change their views on what is important for them in life and then accept this path. This lot chose to be flashy and then complain they do not have money to save for a house deposit ..... 

dude you've just described half of Sunningdale / Parklands

[Hairy]

This was also an interesting series to follow RE container homes.

 

 

EDIT: This clip sounds like a complete sales pitch, but rather follow on to his page to follow the construction process.

 

 

Edited October 8, 2020 by Hairy

[Rocket-Boy]

This was also an interesting series to follow RE container homes.

 

 

EDIT: This clip sounds like a complete sales pitch, but rather follow on to his page to follow the construction process.

 

 

Yeah wow that clip sounds absolutely terrible!! I watched the whole series too and it was nothing like this clip.

Definitely a good series to watch for building tips.

[patches]

I have seen a certain couple who's daughter used to go to school with my son (they lived/rented in our village) who were complaining that they would never be able to afford to buy as the deposits were way too much.

 

What they did not mention is that they both have brand new cars every 3 years max. and that these are very expensive cars, and they are always dressed in new brand clothing head to toe .... I also assume they are both spending a good bit of money at the hairdresser and beauty salons every month.

 

Our cars normally hang around for 10-12 years and would be considered basic.

 

People need to change their views on what is important for them in life and then accept this path. This lot chose to be flashy and then complain they do not have money to save for a house deposit ..... 

 

Yeah, I remember when first moving to Christchurch, I was amazed at what a former colleague (and his partner) had achieved.

 

They were both 23, at the start of their professional careers. Both would have been earning about $60k annually.

 

Both drove old klunker cars (his was older than him, and not in a cool vintage way).

 

BUT, they bought a brand new, 3 bed, 2 bath, double garage freestanding house. It cost them about $450k ($150k land, 300k building costs).

 

He ate ham & cheese sandwiches nearly every day, just to keep within budget to pay the mortgage. But in the long run it was all worth it. he soon climbed up the ranks (as he is a hard worked and brilliant young engineer), and now they're pretty comfortable, 27, and firmly on the property ladder?

 

I understand that no grad couple in SA will be able to afford a R4.5m house, as equivalent salaries are lower and interest rates are higher. BUT banks in NZ also work off a 20% deposit as standard, anything less and they hike up the interest rates, or can simply say sorry, loan denied. So smart financial decisions are required, long before one applies for a loan.

 

Auckland however... it's stuffed! hahaha!

 

Viva la Christchurch!

[davetapson]

While we're doing some comparisons between income and spending between SA and NZ, how would you guys see salaries compared like for like between the country's.

 

I saw above mention of R750k would roughly translate to R1.2M ($110k) in NZ.  Not sure if this was just used for the purposes of the example, but what are your guys thoughts on this?  I'm sure it would differ from industry to industry.

It's hard (for me?) to compare.  Couple observations tho:

 

1. In SA you pay double for everything - you pay tax for school / police / hospitals etc and then pay again to send your kid to private school, pay for ADT/ Discovery etc - this chows up your post tax disposable income.

 

2. In NZ, you're not paying for the stuff the state should provide, so that remains disposable income.

 

3. Anything that requires labour is cheap in SA - restaurants, car washes etc.  In NZ that is expensive, as labour earn a living (sort of) wage. So you don't eat out as much.

 

4. Houses are eyewateringly eye watering expensive. However, once you own most of it, or all of it, you have huge capital - say R14M as opposed to the equivalent which would probably cost south of R2M in SA. Somebody sells their mansion in Ebotse for R5m - good luck with buying a pondok with that here.  And it should maintain value as the currency maintains value.  And nobody has their eye on taking it off you.

 

5.  We tend (when we behave) to have cash left at the end of the month, and save it.  The cash is worth way more than ZARS.  Never had cash spare in SA. Have savings here.

 

6. Cars are paid off as effectively bought for cash.

 

Absolute like for like: I earn probably 1.5x more here, but the comparison is largely meaningless.

 

NZ:ZAR rate is dropping - I put R4k in my mom's account every month - when we arrived it cost me NZD400+ - I think last month was about NZD367. 

 

Every month you stay in SA, you losing relative wealth - and it counts.  When we moved back to SA from UK in 2003 we brought our wealth (such as it was) back at 7:1 to the US$, took it out at the equivalent of 15:1 to the US$.  So that's effectively throwing away half your wealth 'for the lifestyle of living in SA'.

 

 

Edited October 9, 2020 by davetapson