Article by Nick Stewart, CEO & Financial Adviser at Stewart Financial Group
The writing’s on the wall – and in the news – that New Zealanders are preparing to jump ship. Beyond the predicted professional brain drain, lifestyle factors like rent and food prices are driving up the appeal of foreign shores... particularly our next door neighbours.
It may be news, but it’s not new.
NZ migration to Australia is fairly common. You likely know someone who’s lived there for a while – seems like there’s always one in every group. The lure is understandable: higher pay, and (theoretically) cheaper living.
According to the latest Hays Salary Guide[i], the top factors driving turnover are an uncompetitive salary, lack of promotional opportunities, and poor management style of workplace culture. This is across both Australia and New Zealand, so if you’re feeling dissatisified in little old God’s Own, you may find similar factors at play in the land down under. 65 per cent of Kiwis feel they’d be better off financially in another job... as do 59 per cent of Australians.
See where we might be running into an issue here?
Keep in mind that the grass will always appear greener on the other side.
Grass is greener syndrome (yes, that’s an actual psychology term) means you may be ignoring a present which is generally fine, and creating anxiety for yourself by thinking up other scenarios which are currently out of reach.[ii]
Forward-thinking is one thing, but if you’re planning a drastic shake up of your life consider first – will this change help you achieve your goals, or just add more obstacles to the mix?
If you’re moving for lifestyle or location, do your research and honestly assess whether you will be ultimately better off. What’s the trade-off? How much will your move cost, and will you earn enough to replenish your savings when you’re there?
It’s not all rainbows and sunshine in The Lucky Country at the moment either.
While rent is generally more affordable than in NZ (especially with the difference in pay in some industries), finding a rental in the first place can be like finding hen’s teeth.
If you had your eye on Queensland for warmer climates, you’d best get in line. The current rental crisis in Brisbane and the Gold Coast is at a fever pitch since searches for rental properties in Australia from overseas soared 70% in June this year.[iii] Some are reporting would-be tenants are offering up to (and sometimes over) 6 months rent in advance to try and get an edge over the competition, while landlords are apparently taking the opportunity to push up rents and push out lower paying tenants post-pandemic.[iv]
So, if you do take advantage of the job market across the ditch – you’d best have a mate’s couch to crash on in the meantime. The rental situation is tipped to get worse in the next few years as more people migrate to the sunny coastal areas, from both South Australia and overseas origins.
Employers concerned about this potential shift should think about how they can add value outside of salaries as well, if they cannot match their Australian counterparts. The same Hays report identified sick leave, professional development, flexible hours, and improved office culture as being of importance to employees – not just the pay packet itself.
If you have your heart set on Oz, you should treat it like any other large decision in life; do your research, and be honest with yourself about your current situation and your motivations for making this change.
You should also consider how this will impact your financial future. If you’re on track where you are, why wade into uncertainty on the promise of ‘maybe’?
If there’s one thing you can count on in life (and in investment), it’s that the hype rarely lives up to expectations. Take cryptocurrency for example... people have flocked in droves to it, buoyed by its early success. Yet it seems every other day there’s news about folks losing out, whether through hacker activity, scams, or just due to its volatile nature.
While we may want to believe throwing our lot into something new and exciting will work out, it’s a little more risky than just making the decision to go. With the rental market in popular areas looking almost as volatile as crypto... You may find once you do some searching, the grass isn’t so green after all.
No matter which way you go, having a plan suited to your unique goals and situation is key. If you’re not sure where to begin when getting your financial house in order, having a chat to a trusted fiduciary is always a good place to start.
Nick Stewart is a Financial Adviser and CEO at Stewart Group, a Hawkes Bay and Wellington-based CEFEX certified financial planning and advisory firm.
The information provided, or any opinions expressed in this article, are of a general nature only and should not be construed or relied on as a recommendation to invest in a financial product or class of financial products. A disclosure statement can be obtained free of charge by calling 0800 878 961 or visit our website, www.stewartgroup.co.nz
[i] https://www.hays.net.nz/salary-guide?gclid=Cj0KCQjw7KqZBhCBARIsAI-fTKJHWisZrTQn5dELHkeisxdX5FMp6vrGrVgrefjI7a5ftAy8Iy526qEaAgmxEALw_wcB
[ii] https://www.harleytherapy.co.uk/counselling/grass-is-greener-syndrome.htm#:~:text=Grass%20is%20greener%20syndrome%20means,negatively%20affects%20your%20daily%20life.
[iii] https://www.realestate.com.au/news/renal-crisis-overseas-interest-in-gold-coast-could-lead-to-more-rental-pain/
[iv] https://www.abc.net.au/news/2021-04-21/gold-coast-landlords-little-sympathy-for-tenants-agent-says/13310006
