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Time To Move To Australia?

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Contributor:
Mary Holm
Mary Holm

Question:

I wonder if anyone else is facing the same dilemma. I am 31, a technical manager, and earn around $90,000 a year. If I was to move to Australia, my income would be at least $130,000.
 
In the past the only reasons I have stayed in New Zealand are:
 
* A sense of misguided loyalty.
 
* I naively had a retirement plan based around properties.
 
So since 2005 I've accumulated four rental properties, all neutrally geared after factoring in maintenance, repairs, etc.
 
With the removal of depreciation from rental properties, the Government has destroyed my plan for retirement and removed the only tiny advantage to people like myself for staying in this country.
 
Since loyalty can only carry one so far in life, can you please help me to continue fooling myself that living in New Zealand is better than crossing the ditch?

Answer:

Mary Holm: First, the Government hasn't yet "removed" depreciation. Let's wait and see what's in the Budget. Even if it does, it probably won't make a huge difference to you.

In many cases depreciation is clawed back when you sell the property, so it's only an interest-free loan. While that can be worth a fair bit, I wouldn't have thought its removal would "destroy" a plan that was otherwise sound.

Beyond that, you seem to imply that New Zealand is lucky to have you - and that might well be the case. But perhaps you are also lucky to have New Zealand.

If the only thing you appreciate about this country is a tax break, it might be time you went and lived elsewhere. The experience might open your eyes.
 

Mary Holm is the author of bestselling books on KiwiSaver and personal finance. She is also a highly praised seminar presenter. Her written advice is of a general nature, and she is not responsible for any loss that any reader may suffer from following that advice.      

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