How To Save R400,000 a Year

Good day,

Today we would like to shed some light on how by just living and working in New Zealand you could dramatically reduce your tax. Because almost 80% of NZ’s population pays tax it can offer you far more Government services (such as free education and virtually free medical care) and charge you less tax.

This means that you take home more of your paycheck, which means you have greater disposable income and more say in how your money is used. Would you like to pay less tax, and get more for your tax?

Most people don’t realise that tax is the biggest expense we pay. For instance, if you were to earn $100,000/annum, in New Zealand, you would be taxed $23,920 as opposed to $31,772 in South Africa. Already, this is a huge tax saving of R79,725 just by living in New Zealand.

Out of pocket expenses may also reduce by up to R 300,000 / year. This is because education, personal security and healthcare are all expenses which will virtually disappear for you.

This dramatically reduces cost of living, while at the same time giving you Peace of Mind that no matter what field families educational, security, healthcare needs are taken care of so stop something which is incredibly difficult to do in South Africa even when paying for private security medical aid and private education.

That’s a saving of almost 400,000 Rand!

Some things in New Zealand are more expensive, for example, housing. However, that only really applies if you’re in a fortunate position to pay cash for your home. Most of us need a mortgage or a bond as it’s called in South Africa.

Buying a home in New Zealand will cost you less in the long run, because for a given monthly repayment you will end up with a more valuable asset. Which means you will be better placed for your retirement, and in a stronger position to help your children in the future. If you could spend the same each month on your home and end up with an asset worth twice as much it wouldn’t make sense to do it, wouldn’t it?

Let me give you an example the current mortgage rate is around 4%, while in South Africa it’s almost 10%. Meaning for every $100,000 that you borrowed in New Zealand you pay $470 a month, and in South Africa $850 a month.

This indicates that a house costing $500,000 in New Zealand would be the same in repayments as a house costing R2.5 million in South Africa.

If you would like to live in a country which taxes you less, provides a better range of support and encourages you to create a strong asset base then get in touch with us now.