There was a story on New Zealand television tonight suggesting there were some 40,000 English planning a move to New Zealand. According to the report Hamilton, the 5th largest city is a popular destination for Brits at the moment. The reasons cited for coming to NZ was unemployment, a better life, better weather and the forex advantage. The British pound might be falling against the Euro, but the pound goes a long way in NZ.The adjoining chart shows that the NZD is very weak against the pound, such that a pound will get you 2.8 NZDs. In Jan-2006 the exchange rate was even more favourable at 3:1. Its not such a big difference. The advantage of NZ is that a Brit can buy a house in NZ for as little as $NZ80,000 in places like Wanganui, Taumarunui and Otago. By implication asset-rich Brits can live here very comfortably, even if they do it just for a few years. Many Brits come here because they find it a better place to raise a family. Dad's are more relaxed, the working hours are less, but the salary is also lower. NZ runs on a different value system. Money comes a distant 3rd to relationships and sports here.
Clearly NZ makes more sense for people with a lot of assets or offshore income, as these are the people that profit from the low currency. Other nationals, whether Koreans, Americans, Japanese, Australians, Canadians and Europeans will also benefit from the currency advantage. Its that weak.
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