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

[Steven Knoetze (sk27)]

So here is my understanding, and you can take it from where it comes:

1. the NZ economy is doing way better than anyone expected.  Tony Alexander, who is a respected economist here, says that it is probably due to the cash that normally gets spent out of the country on overseas travel being spent in NZ.  

 

The economy is buzzing along ok, albeit with some uncertainty in sectors, but nothing like anywhere else in the world.

 

Property prices have gone ballistic.  Houses are currently selling at 50%+ premium over where they were 6 months or so ago.  More fool us, we put off buying a property, waiting for the 'Covid induced economic slump' hahhahahahahhahahahahahhaha.  Houses we could have bought then are now completely and utterly out of our reach.  Adequate 4 bed house on the North Shore is going to cost you the best part of R20M.  A pile of unlivable junk went for R12M third quarter of last year, and will have gone up in value since then. 

 

2. there are issues, for sure, but not systemic.  The parts of the economy hit the hardest are also, for want of a better word, the most liquid.  A lot of the tourism is based on mom and pop operators and youngsters or less-settled folk. So that they are in distress, although not great for them, is of little consequence to the economy. 

 

3. I'm going to assume that the vaccines will be predominantly effective.  My wife is a doctor and nothing that we have heard from the medical side of things rings any alarm bells regarding the vaccines. 

 

At worst they might not work if they are not effective against whatever strain of virus is around, but you're not going to grow another arm or head. 

 

I personally assume that the vaccine we will get will work, and if not, they will get one that does.  They're pretty pragmatic about stuff here.

 

I've got family in the States, most of them have been vaccinated, no one has any issues or concerns.

 

4. Vaccines have landed here, we're waiting for the roll-out.  I would expect that once we are all (largely all?) vaccinated, and they have some proof that the population is protected against the virus, they will open the borders.  I was going to say 'and life will be back to how we know it' but prior to this little lockdown, we've pretty much been living life as we know it anyway.

 

There may well be fits and starts and bumps along the way, but that's how life works.

 

We've lost friends in SA, and the docs on the E. Rand where we came from have been hammered - there have been an number of deaths, including a partner at one of the clinics my worked at when we returned from the UK, or folk left effectively crippled. 

 

Given the choice of that, or this, there's no question as to which I would prefer.

 

 

 

Really nice read, and I understand fully where you are coming from.

 

The housing market is very scary but I think in general there seems to be a move away from people wanting to own property, at least the younger generation who lease cars for example. It will be a number of years before we will be in ay position to purchase a property, but we will work towards it.

I do believe there is some disinformation around the vaccines. I believe that many people think it will make them immune or not able to transmit and this is very dangerous.

Other than that, I am on the same page as you. Strange times we live in......

[patches]

Regarding housing affordability, I was recently reading this article (and showing my partner as I tried once again to convince her that Chch is where it's at   )

 

Disclaimer: these house prices are pre-covid boom

 

 

I know the article is from over a year ago, and housing prices have gone mental since then, but it had me thinking once again about how a higher disposable income is not mutually exclusive to the higher salaries that a big city (like Auckland) brings.

[davetapson]

Regarding housing affordability, I was recently reading this article (and showing my partner as I tried once again to convince her that Chch is where it's at   )

 

Disclaimer: these house prices are pre-covid boom

 

 

I know the article is from over a year ago, and housing prices have gone mental since then, but it had me thinking once again about how a higher disposable income is not mutually exclusive to the higher salaries that a big city (like Auckland) brings.

Interesting that Tauranga is least affordable in terms of salary vs price.  We've thought about moving there or Napier for affordability reasons (PS. not really, our kids are just settling in here and we're loathe to move which makes things difficult).

[hayleyearth]

Interesting that Tauranga is least affordable in terms of salary vs price. We've thought about moving there or Napier for affordability reasons (PS. not really, our kids are just settling in here and we're loathe to move which makes things difficult).

I was in Napier area over Christmas/New years.... Don't do that too your kids! Rather choose Tauranga if you have to.

 

Property there is a hit or miss at the moment thought, had different friends bought down there there last few months, some got a deal, others not at all I'd say.

[patches]

Interesting that Tauranga is least affordable in terms of salary vs price.  We've thought about moving there or Napier for affordability reasons (PS. not really, our kids are just settling in here and we're loathe to move which makes things difficult).

 

 

 

I was in Napier area over Christmas/New years.... Don't do that too your kids! Rather choose Tauranga if you have to.

 

Property there is a hit or miss at the moment thought, had different friends bought down there there last few months, some got a deal, others not at all I'd say.

 

Napier "city" (really a town) is meh (I don't think art deco is as great as it's made out to be).

 

Hastings is apparently dodgy (I've only passed through).

 

However, Havelock North (a suburb of Hastings) is rather nice. I stayed in an AirBnB there over New Years and the neighborhood was great!

 

That said, my requirement/desire to be within 1hr drive of an international airport excludes the Hawkes Bay are from my "Escape Auckland in the next 5yrs" list

Edited February 16, 2021 by patches

[davetapson]

Napier "city" (really a town) is meh (I don't think art deco is as great as it's made out to be).

 

Hastings is apparently dodgy (I've only passed through).

 

However, Havelock North (a suburb of Hastings) is rather nice. I stayed in an AirBnB there over New Years and the neighborhood was great!

 

That said, my requirement/desire to be within 1hr drive of an international airport excludes the Hawkes Bay are from my "Escape Auckland in the next 5yrs" list

Havelock North is actually where we would end up - just didn't know anyone knew of it!  It is a nice little dorpie.

 

One thing I find is that after the Hauraki Gulf, the coast around that area is pretty bleak.

 

Edit: dunno if anyone has ridden Te Mata peak?  I took a blue run off the peak and crapped myself.  There are some places there you can die.  Or so I think, anyway!

Edited February 16, 2021 by davetapson

[patches]

Whilst browsing TradeMe I came across this and it made me chuckle (schadenfreude alert)

 

So having no clue as to what a used G63 goes for, I thought "that's a lot of money, but maybe reasonable" (not that I'm in the market).

 

Then I saw this...

 

 

So $150,000 for a written off G-class. I thought, that's pretty mental. Are the spares really worth that much? Is it salvageable?

 

But then I got curious as to why someone is trying to sell a written off G-glass. Surely that's insurances' problem...

 

 

So this idiot paid THREE HUNDRED AND THIRTY THOUSAND DOLLARS for a car, waited 2 years for it, then wrote it off on a post (so driver error), within 2 months.

 

PLUS

 

Hadn't bothered to insure it!

 

:lol:

 

How can anyone feel sorry for them!

Goes to show that there is more money than sense flowing around NZ.

Edited February 18, 2021 by patches

[davetapson]

Dang!

On a very much smaller and within my budget scale - a guy across the road from us had his red Jeep Cherokee for sale for $2.5k.  Being newly arrived, it was about what I could afford as a second car, but it had some pin-hole rust in a door that stayed my hand - but I was considering it.

Next thing I see it's been sold in Trademe - with front end damage where he'd chucked it into the bush somehow! $1 starting bid I think

Was on for one day and went for $300!!  I think he was too embarrassed to have it in there any longer...


Speaking of Christchurch, Tony Alexander's comment after talking up Auckland (it's where everyone comes) and down Wellington (sewerage and water infrastructure breaking down, hopefully not too close to each other):

"There is however another element in play for which I still remain extremely uncertain about timewise but could be closer to happening than obvious at first glance.

 

Christchurch is getting better. Challenges remain for sure with the image of the CBD. But restoration of the Cathedral is advancing, the motorway system (I think) is done, and feedback in this month’s Business Survey reveals some firming business demand for leases in the CBD.

 

As put to me recently on a visit there, a lot of the premises which businesses moved into in the suburbs following the 2011 earthquake are due for renovating. Many occupants are deciding it is easier to hop into a new location back in the city rather than work around or seek out an upgraded place still in their post-earthquake location. "

So @patches, you better buy your possie there pronto...

[Steven Knoetze (sk27)]

How does the car market work there, btw.
I see a vehicle must have a WOF and then you pay registration per year.
I believe the WOF must be renewed yearly, or 2 yearly if it is a new car. So similar to a UK MOT then?
I also heard you don't get the actual papers, it is held on the system. Is this true?

[davetapson]

Register the car online.

 

Once a year WOF - I just get cars WOFed and serviced at the same time. Have not yet done sufficient mileage in a year to need a service before a WOF.

 

6 monthly WOF if the car is older than 2000.

 

Get a mail once a year to tell you rego is due, pay online, arrives in the post.

[davetapson]

Can choose rego period from one month longer.

[patches]

How does the car market work there, btw.

I see a vehicle must have a WOF and then you pay registration per year.

I believe the WOF must be renewed yearly, or 2 yearly if it is a new car. So similar to a UK MOT then?

I also heard you don't get the actual papers, it is held on the system. Is this true?

 

As davetapson said regarding the 6 and 12 month WOFs. New cars (and bikes) get a 3year WOF.

 

Rego (registration) can be bought in 1 month increments. Most people just buy 12 months at a time for cars, but for bikes they sometimes take shorter periods (either due to cost, or because they "winter" the bikes by putting the rego on hold).

 

One can put a rego on hold for 3 months + (might be a limit at 12 months. That means that one cannot legally use that vehicle on public roads during that time but also doesn't have to pay the associated rego fees. Many people do this for bikes over the winter/rainy season as bike regos start at around $400pa (so not cheap).

 

A vehicle can have a WOF without a rego but one cannot get a rego without a WOF.

 

I had some WOF & rego hassles with my Husky 350. The bike was down in Christchurch so getting a WOF was tricky (but rego I could do online). When I eventually got it back up to Auckland the WOF had expired. I took it to get retested and it failed (some plonkers at VTNZ and the rally kit didn't help). Anyway, I took too long to built the OEM road kit back on and once my rego had reached 12months of expiration, they deregistered the bike and requested that I send the plates back.

 

Sucks for me, but a pretty good system to ensure roadworthy vehicles.

 

Imagine if SA had something like this. Taxis and skadonks would be deregistered left-right-and-centre. Corruption at WOF testing centres woulnd't help either as here they can result in a $250,000 fine for the business, so not many of them take some under-the-table persuasion.

[Steven Knoetze (sk27)]

As davetapson said regarding the 6 and 12 month WOFs. New cars (and bikes) get a 3year WOF.

 

Rego (registration) can be bought in 1 month increments. Most people just buy 12 months at a time for cars, but for bikes they sometimes take shorter periods (either due to cost, or because they "winter" the bikes by putting the rego on hold).

 

One can put a rego on hold for 3 months + (might be a limit at 12 months. That means that one cannot legally use that vehicle on public roads during that time but also doesn't have to pay the associated rego fees. Many people do this for bikes over the winter/rainy season as bike regos start at around $400pa (so not cheap).

 

A vehicle can have a WOF without a rego but one cannot get a rego without a WOF.

 

I had some WOF & rego hassles with my Husky 350. The bike was down in Christchurch so getting a WOF was tricky (but rego I could do online). When I eventually got it back up to Auckland the WOF had expired. I took it to get retested and it failed (some plonkers at VTNZ and the rally kit didn't help). Anyway, I took too long to built the OEM road kit back on and once my rego had reached 12months of expiration, they deregistered the bike and requested that I send the plates back.

 

Sucks for me, but a pretty good system to ensure roadworthy vehicles.

 

Imagine if SA had something like this. Taxis and skadonks would be deregistered left-right-and-centre. Corruption at WOF testing centres woulnd't help either as here they can result in a $250,000 fine for the business, so not many of them take some under-the-table persuasion.

 

Thanks for the info Dave and Patches.

Definitely sounds like a good system that would 100% not work in SA.

[davetapson]

And if you should not receive your rego in the post because you've moved house and maybe there was a mixup somewhere, you can go to AA or PostShop or some other places, fill in a MR6 form, pay $4.11, and get a duplicate.

Takes about 10 mins.

Edit: $4.11 is for 'printing'.  Just how expensive is printing a piece of card 5cm x 10cm or so.  See, I'm beginning to whinge like a native now...

Edited February 23, 2021 by davetapson

[davetapson]

So I see today that Tourism comprises 5 - 6% of NZ GDP.  I had expected it to be more. 
Explains why the wheels didn't indeed fall off when the borders closed.

[WrightJnr]

ISP switched. Pretty seamless. Just needed to update my router settings when I got home.

 

Screenshot 2021-02-11 070223.png

That'll do pig, that'll do!

1ms ping. Always a secret smile of satisfaction when I see that. Or as Jeremy Clarkson says....”that makes my man bits tingle” [emoji1787]