NZ - the land of milk and honey?

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There are a number of problems for NZ population growth...the appeal of Australia stands out as a sore tooth for a number of reasons. The most bleating obvious ones are:

1. NZ'ers love to hate the Ozzies, so it places a hole in their hearts to know that some of them are going off to the land of milk and honey. The land of persistent job growth and relentless balance of payments surpluses. Quite simply the land of higher incomes, job growth, housing prices rises, oh...and did I mention population growth. The population of NZ (mostly immigration) grew just 13,ooo for the year, even after including the better performances by using a rolling average. Australian immigration is growing 300,000 a year, though it might halve due to changes in government policy.

If this was the only reason to prefer Australia...

2. I would suggest Australia has the better record on crime rates...significantly so..but then I lived in the nicer parts of Australia. There are a lot of yobbos in NZ, a lot of speeding, alcoholism, bored youths, predatory natures, etc.

3. Diversity - There must be somewhere in Australia to suit your tastes. Of course it can all be about the amount of money it takes, and sadly Australian property is overpriced because of highly restrict land zoning regulations. It really is a form of slavery that the Australian govt makes you live in the city for jobs, and subjects you to rip off land prices by restricting land releases. Why? Because it wants you to be a 'good taxpayer' for the Commonwealth...to defend freedom in 'far flung' parts of the British empire. On this point, I am almost convinced Australia is not the place to live. Oh, and how could I forget the most evil organisation in the world after the MGB, the Fed, the IRS...yes, the Australian Tax Office. Its tentacles have been know to reach into a man's pants and pull off his testicles in one foul swoop on his manhood....in the pursuit of money. So you see...the choice is clear. There is no clear place to live until there is a revolution in Australia by taxpayers. I don't see that any time soon.

Don't get me wrong...NZ is a nice place to live. If I couldn't go to Australia, NZ would be a good 2nd choice...but for the lack of job growth, I'd probably not opt for an isolated island on the other side of the world (unless it was as big as Australia). If I was an American, I'd probably opt to migrate to the Mid-West, where the only crime is the stuff that stays in the family. If I was a Brit, I'd probably buy a section in the back-blocks of the UK with a commute to a city.

The other problems with NZ are the rising consumption takes rates which fall on retirees to a large extent, like foreigners. The other problem is the incessant winds which blow all the time.

This might be why I never stay in one country but seem to travel between a few. There is no single one good place in the world....you have to keep travelling or repress or the bad points. Most of you are repressors of course.....morally ambivalent repressors.

NZ Property Guide Philippine Real Estate Guide Japan Foreclosed Guide

Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

Performance of Wanganui Mayor NZ

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Michael Laws is a rather high profile mayor in NZ. Mostly it is because of his antics. It always gets a lot of national attention, as well as derision. His conservatism is popular with the retirees in Wanganui I suspect. But let's look at his performance. The council rates are increasing by 4.5% in 2010/11. This seems most enough when you consider inflation, but one might ask why councils can't achieve cost reductions through efficiencies, particularly when we are talking about a rural region subject to steady population.

I think one of the biggest opportunities for saving public money is by adopting a per volume cost for water usage. I note the impact of free water on the community. My neighbour said 'Andrew, don't worry about wasting water, its free'. I replied 'nothing is free', someone always pays. The reality is that Wanganui water is expensive because it is derived from bores as opposed to regulated dam storage. The implication is that if there was an increase in population, we would need to develop more boring capacity. I note that the council recently developed new boring capacity to substitute for the failed no. 1 bore. It should have simply adopted a pro-rata pricing of water. Now, this might be harder than it sounds, i.e. Maybe the water in NZ is unmetered. I guess, unlike Australia, they are so accustomed to having free water. Even so, even if usage was collectively based on the premise of 'user pays', it might still have some effect, even if weaker. i.e. My neighbour would be less inclined to say 'its free', knowing that collectively I was paying more because of his actions.

Another big mistake is for Wanganui Council to have paid $20 million (my understanding) for Wanganui Gas. This utility is a legacy of the old electricity and gas board days. By buying the balance of the utility from its JV partner, it is exposing rate payers to commercial risks which we don't need. Consider for starters that the industry is undergoing consolidation. How is its retail arm 'Energy Direct' going to compete with the full service providers. I might add that the window of opportunity to sell this utility is dying. Consider that the ratio of residential to industrial gas prices in NZ are the highest in the world- even higher than statist Japan, where consumers always get a bad deal. Literally slaves to the state. NZ residential gas prices based on last years prices are 10x greater than the prices for utilities. The reason of course is that the NZ privatisation scheme was a sham, and the very uncompetitive regime for gas and electricity in NZ. Consider that consumers are baying full price for electricity, when most capacity is operated at almost zero cost. Water is free, and no fuel cost. Markets demand you pay the marginal price, which is the cost of high-cost wind, also near-free to operate, but costly to install. The implication is that if some person decided to commission a 600MW power plant, prices could halve, and the utilities would still make a great profit. The current regime is huge profits for the utilities, as well as government, and it raises the question of whether the utilities have paid huge kickbacks to secret bank accounts in Switzerland in order to structure 'deals' like these. Hard to say if its incompetence or corruption. There is a fine line between stupidity and deceit.

It ought to be apparent though that Wanganui Council has on benefit to derive from being in the industry given that the returns are never going to be greater. Get out why you can! Coal seam gas would erode their profitability when developed in the Waikato Basin, greater convergence can be expected, etc. There is better ways to attract jobs that by propping up historical practices.

It is apparent that the council is creating a problem of future unfunded liabilities by underspending on the maintenance of public infrastructure. These problems or cost items will not disappear, which means that the Council is moderating rate increases by increasing future contingencies. I am a believer in very small government, so the idea of a local government having $84 million in debt is ridiculous, particularly one which cannot attract people (i.e. rate payers). Worse still is the fact that they project it will increase to $96 million before falling. Who can know that is reasonable - that the debt will fall to $66mil in 2018/19? Are they projecting a population explosion to justify it, or an increase in future rates? Hard to see if this is possible if they are pushing capital outlays into the future.

Laws makes the argument that Wanganui will be among the 'elite' group of 16 councils (of 73) able to reduce debt in this period. This says nothing since Wanganui is among the few councils likely to be forecasting stagnant population growth. i.e. No capital expenditure demands. Such 'relativist' statements are therefore misleading.

I do think the council is doing a good job improving the visual appeal of the city. This will attract tourism, and improve property prices. Wanganui is a great place to live, and I also support their desire to improve the negative perception of Wanganui. People seem to think this town is overrun by gangs. I have yet to see any gang activity in the year I have lived here. Not seen a gang member at all, and we live close to hot spots of trouble. Maybe this is the result of the anti-crime initiatives, because I must say in the first 8 months of living here, I was seeing a police car every day. Now its once a week.

I also appreciate the opportunity the council has given to make public submissions. Not a believer in representative democracy, but better than nothing. No accountability, so its one-sided representation. What is the point of disclosure if you have no recourse for 3-4 years; and that recourse is zilch in comparison to the rest of the unthinking electorate.

Finding a home in NZ

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New to NZ? Well we have found the perfect way to find a home in NZ. Quite simply the best opportunity is to buy a van and turn it into a campervan. You can buy a van for less than $5,000. Any conversion is likely to cost you no more than $2,000 if simply done. The good news is that you will be adding value to the vehicle. You don't need a customised fit-out because any such permanent construction only reduces the flexibility of the vehicle for the next buyer. The essentials are:
1. Space for a mattress and sleeping bag
2. Power with connection to alternator for a trickle charge.
3. Showers at local swimming pools (usually $3-4 for entry) - free at the beach

You might want refrigeration, though for the most part I think NZ is too cold to justify a refrigerator. You might consider the alternatives instead:
1. Buying fresh fruit & vegetables
2. Buying long life milk.
If you need a fridge, you might need to get a gas cylinder to ensure sufficient power supply, as you might not be driving sufficiently to charge the battery on a continuous basis.

More tips on campervanning in Australia and NZ at our website.

Places to live in NZ - the North Island

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Recently I have been tripping around the North Island as well. I am delighted to tell you that I think you could find a great many places which you might appreciate as places to live. Personal tastes will differ, but in terms of basic amenities, you might want to consider the following places:
1. Wanganui: This city has an undeserved reputation for its gang activity. I have lived in Wanganui for a year now and I find my neighbour's friendly and quiet. We heard verbal abuse on the street for the first time last night. We have public housing at the end of our street, and there has been some isolated gang incidents over a year ago, which resulted in a drive-by shooting. But essentially its a peaceful place. Yet this city has a bad reputation in NZ as a gang centre. It is a low-income city, though it also has lovely parks, a good beach, good services, a good climate, friendly people, and is well-positioned to provide access to the rest of the North Island, as well as for tours of the South Island. Property is cheap. Skiing is just 90 minutes away.

2. Stratford is a nice town near New Plymouth city. It is an inland town, though one might want to worry about being down-wind from Mt Egmont volcano. Perhaps not the most active volcano, so not too much to worry about. The Taranaki region appeals to many retirees. There are many lifestyle blocks around this area.


3. Whakatane: I liked this town because it offers good access to the Bay of Plenty coast and Gisborne. It is a reasonable size town with ok beaches, services, and not too far from Auckland.


4. Napier/Hastings: This area, like New Plymouth, attracts a lot of retirees, so there are a lot of lifestyle properties, and property prices are generally higher. The climate is more pleasant on the East coast, though sparingly so. The sea is still cold most of the time, and its still windy. The fact that there are two significant sized cities together appeals, even if its remote from Wellington and Auckland. A lot of wineries and fruit growing, and good services.


5. Lower Hutt: I like the idea of being on the coast, but if one must be inland, than the proximity of Lower Hutt makes this area a good choice. It has a walking/bike track along the river into Wellington, which appeals to me, as well as a railway connection, even though traffic is not so bad.
6. Whangerei: I have not been to this city before, and not to the region for a long time. Northland though is the northern-most part of NZ, and thus arguably the mildest climate in NZ. Its close to Auckland, but it does not have good access to the rest of the island.

I retain Wanganui as a preference as a place to live on the North Island. I would not be looking to buy property here for another 2 years until interest rates bite, but thereafter it will be a good place to buy in capital growth areas. These areas currently have too high property prices attached to them. No pain has yet to be applied in the recession because of government bail-outs. The pain will come in the form of higher inflation and interest rates. This allows the government to evade responsibility for its monetary manipulation. In any case, Wanganui is a nice place to live, and in 2-3 years I'd look at other places as lifestyle+investment choices if you are so motivated. I see no great growth in Wanganui unless there is a jobs stimulus in NZ. The culture seems more lifestyle orientated.

Places to live in NZ - the South Island

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We just returned from a week trip around the South Island of NZ. The trip started in Palmerston where we bought a 2nd hand 1997 Mitsubishi Carisma for just $3000. Second hand cars are very cheap in NZ. There is no reason to buy on TradeMe, from a car dealer or new given the plethora of quality Japanese and business cars on sale through auction.

We were a party of four. We tended to stay at motor lodges in places such as St Arnold, Frans Joseph Glacier, Te Anau, Dunedin and Kaikoura. Our trip started by taking on the West Coast first.

I find it difficult to decide between the North or South Island. The divide between them is unfortunate. It cost us $650 to take 4 people and a vehicle on a return trip across the Cook Strait. The South Island is a little colder, but the nature is more impressive. If your house is well-insulated its probably not an issue. Its not like you can swim at the beach elsewhere.

I am a fan on rural living, though I do appreciate reasonable accesses to services; at least those provided by a town of 40,000+ people. After reviewing the locations, I must say I could live in a number of places:
1. Murchison, NZ: This town has a lot of outdoor activities though its a little remote.
2. Haast, NZ: This is attractive coastline but its very wet and very remote. Great for people who want to catch and grow their own food. Few people live on this coast, and most people are international tourists passing through.
3. Te Anau: This is a small town, but its growing. It has good access to some large towns, it is not a full service service, but it can address most needs. It has good provisions for recreation and basic community services like groceries, libraries, etc. Years ago I liked Wanaka, but property prices there are high, so Te Anau makes more sense. Not far from Queenstown too. The satellite town of Manapouri is another option for cheaper property.
4. Oamaru: This is a regional town which services the inland irrigation communities. The port is no longer used but this town has character. The beaches are not so great in Oamaru, but head a few kms south to Palmerston, and there are good pickings.
5. North of Christchurch: I did not like Christchurch much, but there are some nice surburbs near the beach to the north of Christchurch, and they are just 30mins from the city if you want access for work or services.