But off-field matters made it a tough choice, although once his family was in "boots and all", he knew it was a no-brainer.
Joseph, who was officially named as the coach of the side yesterday, also said there appeared to be something wrong within the Highlanders side as it lost so many close games.
Joseph had been widely tipped to take over from Glenn Moore and it was finally confirmed by the Highlanders and the New Zealand Rugby Union yesterday.
An assistant coach to join Joseph was not named yesterday but it is expected within the next few days that Southland co-coach Simon Culhane will join his former All Black team-mate in a new management team next year.
Joseph was working through when he would finish with Wellington but it would certainly be by the end of next month.
The former All Black said he was excited about the challenge and returning south.
"Dunedin and the South, with Southland, are proud rugby provinces. They gave me something as a person and I learnt my trade down there, learning lots about life from the likes of Laurie and Gordy [former Otago coaches Laurie Mains and Gordon Hunter]," Joseph said.
"Otago provincial rugby in recent years has not played as well as they have played previously. Dave [Latta] and Phil [Mooney] have got a massive job on their hands to get the team back up to being what they should be and develop the players to being the best they can be, wanting them to be professional athletes and perform at their best.
"If I can help do that then I will help out as much as I can."
Joseph studied at the University of Otago and stayed in the South for eight years before he left to coach and play rugby in Japan.
He coached Wellington to two straight domestic finals, losing to Canterbury both times, and won the Ranfurly Shield for Wellington in 2008.
He said as an outsider looking in, there appeared to be something wrong with the make-up of the Highlanders.
"I think there is some discord within the team. You can see that when they lose so many tight games. There is an edge missing. That is something we really need to sort out."
With the Highlanders finishing as the bottom New Zealand side in Super rugby competitions over the past six years, getting wins is the first priority for Joseph.
As for players following him south, he did not have anyone in his plans at the moment although he felt players who were not 100% committed to the side should be cast off.
"If there are guys who do not want to be there then that is out of my control. But you don't want guys there who are not interested in playing for the team. We want guys who are totally committed in playing for this team."
All Black fullback Israel Dagg is set to move to the Crusaders while loose forward Adam Thomson is also wavering over his future.
As for the input of All Black assistant coach Steve Hansen, Joseph said if Hansen wanted to help out then that would be great, but the No 1 priority for Hansen had to be with the All Blacks.
Joseph said it was tough to leave Wellington after he had put a lot of work into the side. Assistant coach Andre Bell looks set to take over in a few weeks.
Wellington plays Otago on August 14 at Carisbrook and Joseph said it was still being worked out whether he would coach the Wellington side that night. He would definitely be in Dunedin by the end of next month.
Highlanders chairman Ross Laidlaw said the franchise could not think of anyone better to be head coach.
"We all know how hard he played the game and we don't think he has changed his approach in coaching," Laidlaw said.
He felt Joseph would do a good job in breeding a culture and identity for the Highlanders.
Joseph said it took a while to decide upon the position, though the Highlanders had identified their man at an early stage.
"Obviously, we need somewhere to sleep and things like that. As a rugby decision, it was pretty straightforward because it is a higher level of rugby and in many ways I wanted to return to the South at some stage," Joseph said.
"But I've got four children and an established business and and I'm contracted with a team which is just about to start the season, so it was difficult.
"But the family are in boots and all and I couldn't do the job without the support of my family. Once they were on board it was all go."
Jamie Joseph - New Highlanders coach
• Age: 40
• Family: Wife Mandy, children Lydia (10), Ben (8),
Maia (6), Lula (2).
• Born: Blenheim
PLAYING CAREER
• Position: Blindside flanker and lock
• Otago: 68 games, 1989-95
• All Blacks: 30 games (20 tests), scored three tries
• Japan: Moved there in 1996, played for Japan at the 1999 World Cup
COACHING CAREER
• New Zealand Maori: 2010
• Wellington: 2008-10
