Guest Pinhead Posted June 13, 2008 Share Posted June 13, 2008 2004 - are you having a laugh!! In 2004 I sold my first house in the UK - it was up for sale again recently for over £100k more. A lot has happened since then. Having said that, I concede that a single person living on beans in a crap 1 bedroom appartment in one of the many slums of Melbourne would get by on $27k, providing, as you say, you don't expect holidays or any kind of social life, and limit your use of the phone to incoming calls, etc !!As for the 40% tax - check it out - its fact. The Australian government only lets you bring money into the country for a period of 6 months before they start taxing you on it. My point on the total cost of moving here was to point out that people coming here will end up seriously out of pocket, and depending on the exchange rate at the time they could end up even more out of pocket. The dream of being mortgage free or having that house with the pool could be blown if the exchange rate is against you. So.... yes it does matter. The apartment I was living was in the 'Paris end' of the CBD not 'in the slums', on the corner of Bourke/Exhibition (Paramount building). The rent in 2004 was net $365pw & is now in 2008 $400pw, that is fact! The apartment is a large (certainly compared to the tiny 1 beds they are now building) fully furnished 59m2 1 bed with everything except towels (TV,DVD, cutlery,crockery, even came with washing powder,etc!) in a security controlled building with swimming pool,sauna,spa & gym. If you like I can put you in touch with the real esate agent! As I posted you COULD live oz for $27.5K but you couldn't live in the UK for £12.5K. I never said you would have a good life. I was trying to demonstrate that the amount you can earn compared to the cost of living and average wage is more important than the exchange rate. People in some occupations will be better or worse off than those in others. You are mistaken re the 40% tax on your money if you don't bring it into the country.I believe you may be talking about the exchange gains on amounts greater $250K if they are not brought into the country. That is a long way from being taxed on the whole lot at 40%. Please provide the link to the ATO website that shows what you are referring to? Or are you refering to the pension or capital gains tax legislation? Neither of which relate to lump sums of cash. There are a lot of people who are moving to Oz that are taking very little or no money with them. In their cases the exchange rate is completely irrelevent. Link to comment Share on other sites More sharing options...
Guest Mel.R Posted June 13, 2008 Share Posted June 13, 2008 You are mistaken re the 40% tax on your money if you don't bring it into the country.I believe you may be talking about the exchange gains on amounts greater $250K if they are not brought into the country. That is a long way from being taxed on the whole lot at 40%. Pinhead Can you explain this for me. We may only bring part of our equity with us and leave some in property in the UK until either the housing market picks up or we decide to purchase in Oz. if the amount were say £70k how would that be taxed, if at all. Greatly appreciated. Mx Link to comment Share on other sites More sharing options...
Guest Pinhead Posted June 13, 2008 Share Posted June 13, 2008 Pinhead Can you explain this for me. We may only bring part of our equity with us and leave some in property in the UK until either the housing market picks up or we decide to purchase in Oz. if the amount were say £70k how would that be taxed, if at all. Greatly appreciated. Mx If it's an investment property (ie not your former home) then you will be taxed on the net income generated (after expenses such as mortgage interest, EA fees,etc) and also the capital gains when sold and it will be assessable in Oz if you are a taxable resident in Oz. You can apply to the IR to have the income paid gross otherwise your EA will deduct tax at 20% and you will need to reclaim it back or claim double taxation relief where appropriate. If it's your former home (Principle Private Residence) then there are separate rules in the UK that give you relief on the capital gains for 3 years after no longer living in it. I think it maybe a longer period in Oz (6 years?) so check the ATO.gov.au website but the other criteria are similar. Net income is taxed the same as above. Please consult a tax advisor who specialises in UK & Oz tax or check out the ATO website before making any firm decisions that my later cost you money. I am not a tax expert but do have some knowledge on the subject. Link to comment Share on other sites More sharing options...
Guest Mel.R Posted June 13, 2008 Share Posted June 13, 2008 If it's an investment property (ie not your former home) then you will be taxed on the net income generated (after expenses such as mortgage interest, EA fees,etc) and also the capital gains when sold and it will be assessable in Oz if you are a taxable resident in Oz. You can apply to the IR to have the income paid gross otherwise your EA will deduct tax at 20% and you will need to reclaim it back or claim double taxation relief where appropriate.If it's your former home (Principle Private Residence) then there are separate rules in the UK that give you relief on the capital gains for 3 years after no longer living in it. I think it maybe a longer period in Oz (6 years?) so check the ATO.gov.au website but the other criteria are similar. Net income is taxed the same as above. Please consult a tax advisor who specialises in UK & Oz tax or check out the ATO website before making any firm decisions that my later cost you money. I am not a tax expert but do have some knowledge on the subject. Food for thought. Many thanks Mx Link to comment Share on other sites More sharing options...
buckbuchanan Posted June 14, 2008 Author Share Posted June 14, 2008 Pinhead. It just occurred to me that you might still be stuck in a timewarp (which is kind of my point with this whole thread and some of the info posted on this site). Your argument about how you can live in Oz on $27k but can't live in the UK on £12.5k - at an exchange rate of 2 to 1, $27 is not equal to £12.5, so it's a bit of an unfair comparison. I think you might still be stuck in the good ol' 2.5 to 1 exchange rate days. Secondly, it occurred to me that my nephew who has not long passed his apprenticeship is earning less than £12k and yet has his own house and pays his own bills, etc. So, that is 2 of your myths 'busted'!! As for the tax issue... it sounds like you know a bit about this. I admit that this is something that I don't know a great deal about - I read something about it before I came here, then while I was in the Comm bank getting my account setup the bank reminded me about it (you could argue they have a vested interest in me bringing my money over, and so are biassed) - if I find out this is not the case and they have lied to me I won't be happy. However, friends of ours who have just moved here brought up the subject with us only last week. So somewhere out there is a story that you will be taxed after 6 months - I will leave it up to the readers to investigate for themselves but as I have now been here 4 months I will be checking up on it in the coming weeks. Having said all that I have had a quick search on the web for info about it and can't find anything, so it could also be a myth!! Or as you say I have possibly got confused with the pension thing, etc. Link to comment Share on other sites More sharing options...
Guest Pinhead Posted June 16, 2008 Share Posted June 16, 2008 You're still missing the point! It's not about an exchange rate of $27.5K being equal to £12.5K, it's about $27.5K & £12.5K being half the average salary of each country!!! As for your nephew is he living in the outskirts of London? Because that's where you'd have to compare in the UK to Melbourne. £9,500 pa to rent is what you'd be looking at plus council tax (£750), water (£300), gas (£350), electric (£300), tv licence (£120), food (£1,500) and that's before you've travelled to work to earn the money! Link to comment Share on other sites More sharing options...
Guest EvieB Posted June 16, 2008 Share Posted June 16, 2008 For my son's sake, will someone please tell me where in the UK you can live on £12,500 p.a? Because it's certainly not around here, where just the rent would cost most of your take-home pay on that salary and one bedroom flats cost £180,000. Link to comment Share on other sites More sharing options...
buckbuchanan Posted June 17, 2008 Author Share Posted June 17, 2008 Ok... I had missed the point about being half the average salary, but it's still a fairly pointless comparison. My point is that people over here are no better off, even if they do live in a country with a higher average salary! Earning more money isn't going to get you anywhere if you are spending more on living. Maybe I should take this from a different angle... since moving to Australia I am earning less and spending more and have less disposable income at the end of the month than I had in the UK. This is also the case with most of the people I know who have moved over here. And let's not compare Melbourne with London - London has almost the same population as the whole of Australia - it is in a different league. Link to comment Share on other sites More sharing options...
buckbuchanan Posted June 17, 2008 Author Share Posted June 17, 2008 EvieB - have you ever realised that the UK actually goes further north than London? It is actually possible to live north of Herts and buy a house for a reasonable price!! The UK doesn't just consist of London!! Link to comment Share on other sites More sharing options...
Guest Pinhead Posted June 17, 2008 Share Posted June 17, 2008 If you have less disposable income at the end of the month than in the UK then yes techinically you are financially worse off. Not everyone will be in that situation and a lot of people will be more than willing to make that sacrifice for a better quality of life. The real question is are you happier now than you were when you were in the UK? Money isn't everything in life. Link to comment Share on other sites More sharing options...
buckbuchanan Posted June 17, 2008 Author Share Posted June 17, 2008 This is exactly it, and not everyone will be in this boat but from what I have seen the majority are. I only know 1 person who is financially better off, but then again everyone I know works in the same industry as me. As for the big question of are we happier - haven't decided yet. As you say money isn't everything, but having to drop your standard of living isn't good no matter how you look at it! Link to comment Share on other sites More sharing options...
Guest EvieB Posted June 17, 2008 Share Posted June 17, 2008 EvieB - have you ever realised that the UK actually goes further north than London? It is actually possible to live north of Herts and buy a house for a reasonable price!! The UK doesn't just consist of London!! No need for sarcasm! I think you are missing my point which is that everyone's situation is different. Just because you are worse off, doesn't mean that everyone will be. We have already seen a couple of posts on PIO where people are worried and concerned after reading the negative posts and it could be that they are worrying needlessly, it all depends on their current circumstances and everyone needs to make their own decisions based on those. I agree that none of us should be wearing rose coloured specs but it's just as bad to use scaremongering to worry people who are already struggling to make a life-changing decision. Link to comment Share on other sites More sharing options...
Guest moonraker1961 Posted June 17, 2008 Share Posted June 17, 2008 Buckbuchanan,hope it all works out for you there?I see where you are coming from as I have lived in Oz a long time.We have good jobs here and travel alot and I'm abit scared/worried it'll all go downhill once we get back (I have lived in the UK for the past 10 years but have returned to Oz a fair bit in between).Things have changed alot in oz since I left and I'm unsure now where our future lies?Only time will tell I guess?All the best and hope you send another update soon! Link to comment Share on other sites More sharing options...
buckbuchanan Posted June 21, 2008 Author Share Posted June 21, 2008 EvieB - Ermmm... weren't you the one who started the sarcasm? I do take your point, but my point is that there are people on this site who will have you believe this is heaven. All I have done is point out that it is not. There are problems here - lots of them. You may not be better off - in fact you may be worse off. Having a go at me for writing the raw facts down for all to read isn't helping anyone. People need to be aware of what they are getting in to. If someone is reading this and is already in 2 minds about coming then I think they should do more research before taking the plunge because it may not work out for them. I am not going to sit here and tell them this is a great place and everything will work out - it's not true. As far as my own circumstances go, I am worse off, but there is no way I would not have come over here. I have regrets about coming, but I am also glad I came because I would have spent the rest of my life wondering if I did the right thing. Whatever happens I can now tick this box and say I have done it. If it really doesn't work out I can go back to the UK. I will be financially much worse off, but I will have fulfilled my dream of coming here. This is much better than spending the rest of my life thinking about the what if's. But for some people this might not be their dream - it might be a spur of the moment idea. Those people need to properly weigh things up before coming over here. Link to comment Share on other sites More sharing options...
Guest JoanneHattersley Posted June 21, 2008 Share Posted June 21, 2008 I have to say Buck confirmed everything that OH and me thought about Melbourne! I have lived in Brissie for 3 1/2 years and we are POMS. I really disliked Melbourne, even to visit , let alone live!!! It is an opinion thing. I love Brissie, like to visit Sydney but dont wanna live there. There are more than enough on here that will disagree. Moonraker - things have chanegd here even in my short time!!!!!! EvieB - neg posts are NOT scaremongering. They are honest. There is a difference, a big difference and for those people that cant see that, then maybe they should think twice before plunging into Oz! Saying that , I never did ANY research before I left the UK (OH did). My theory was ...no expectations, no disappointment! However crazy and silly that sounds it worked for me! I haev no intention of leaving Brissie and less intention of moving home! Link to comment Share on other sites More sharing options...
Guest moonraker1961 Posted June 21, 2008 Share Posted June 21, 2008 Yes I agree again with Buckbuchanan and johatts.I am fairly scared of returning to Oz because myabe my expectations won't match the reality.I also think though its good to read the good and bad because you will get a balanced view.My family in Oz fill me in quite abit,but I have also learnt alot from the folks on this website.So thanks all,and good luck to everyone whatever you decide to do,as yet we are still undecided. Link to comment Share on other sites More sharing options...
Guest Helen Posted June 22, 2008 Share Posted June 22, 2008 Ok, this is just from my own experience, but I think everyone would find it more expensive to move anywhere right now. I got the shock of my life moving back to the UK from Germany in August. Two years previously I had never earned more than £600 a month net in the UK and lived quite happily and even managed to save money to travel. I moved to Germany, got paid double previous earnings and saved £600 a month!!! I moved back to the UK and my wages (gross) are the same as in Germany, yet I now take home significantly less. My out goings are also the same in pounds as they were in euros (was 1000 Euros per month now £1000 per month), and get less for it. It is killing me financially. Fair enough, my rent is the same in pounds as was in euros, that is my choice not to share after two dodgy experiences. I find in this country, it is things like tv licence, council tax and water rates that make the huge difference. These were included in my rent in Germany and is normal for this to happen. My food bill is also a lot more now than before I moved to Germany and I buy the same things. I pay half as much again for a shop now. Again I pay the same in pounds per week for a shop as I did in euros. However, friends still in Germany have said prices have increased lots over there recently so I am guessing this wouldn't be the case now. I guess the point I am trying to make is that everywhere has got a lot more expensive recently and maybe you just dont notice it as much when you have lived in the same place for a while and everything is increasing at the same rate. Link to comment Share on other sites More sharing options...
Guest Les & Woz Posted June 22, 2008 Share Posted June 22, 2008 Hi Great to read your post. We are coming to Melbourne but feel that we don't really like it before we come as we visited last Oct. Admittedly we were only in Melbourne for 4 days for a wedding and we did get to Philip Island to see the Penguins as OH uncle and aunt live there. We weren't over keen on the city but didn't get to see anywhere else and don't intend to live close to the city. We want to live in Queensland but have to do our 2 years in Melbourne unless we can get out b4. OH does have lots of relatives inMelbourne so make may it a bit easier as have someone to ask about things. Hope you manage to stick it out and move somewhere you prefer. You are not missing anything back here and things are getting very expensive too. Take care. Les Link to comment Share on other sites More sharing options...
Guest Pinhead Posted June 23, 2008 Share Posted June 23, 2008 Rather than posting things like 'I earn the same but are spending more' or 'Melbourne is more expensive than where I lived in the UK' which are completely useless why don't people actually start posting facts like 'Plumbers earn £X in UK & $Y in Oz' or Houses cost £X in Hull (for example) & $Y in Perth'? It would certainly be a lot more useful than personal circumstances that more than likely don't apply to many other people. Link to comment Share on other sites More sharing options...
Petals Posted June 23, 2008 Share Posted June 23, 2008 Interesting thread, you are right Melbourne is a big city just like every other city and when we travel overseas apart from language and weather all cities are the same. Its when you get out of the city that it is different here. We regularly go to Bright in the summer and to Falls Creek and take the road over to Bairnsdale and its great, love Victoria. My son is a teacher and he never wanted to teach here in Melbourne and he lives in Yarrawonga and we visit with him regularly and its lovely there. Close to Albury, Wangaratta, Bright, Cobram, Sheparton. Just a different life again. Its not for the financial aspects any more I believe its for space and we have oodles of it here. When we go up Mount Buffalo in the summer and climb up to the highest point the feeling is so great, so quiet and lovely. We drive for an hour from here to beaches with no-one on them lovely. So many lovely places to visit here in Victoria. Another best friend of mine lives in Exhibition Street in Melbourne in a large apartment and they another apartment at Lorne where they go for weekends. They have no children and the life suits them fine. So its the weather and the space for us. Link to comment Share on other sites More sharing options...
Guest Pinhead Posted June 23, 2008 Share Posted June 23, 2008 Melbourne has been voted in the top 2 'most liveable cities in the world' for years now so the general consenus is that it's better than most in the world. If you don't like cities then saying you don't like Melbourne isn't very relevent. Link to comment Share on other sites More sharing options...
buckbuchanan Posted June 23, 2008 Author Share Posted June 23, 2008 Pinhead - sounds like you have spat the dummy! I'm making a simple point with this thread based on how I see things right here right now. I agree with some of the facts you have posted. You have disagreed with all the facts I have posted. You seem to want to compare the whole of Australia with London when it suits you, and other times you want to compare the whole of the UK with the whole of Australia. Using this you can win any argument. For example you go on about the average salary in the UK vs the average salary in Australia; then you compare the cost of rent in Melbourne against the cost of rent in London. It just doesn't tie up. If you want to do that, lets compare the average salary in London with the average salary in Melbourne and see where we stand... How can you say personal experiences are pointless - surely that is the whole point of this site. If it isn't I guess we will just have to post statistics on here! I think the bottom line is we will have to agree to disagree. Based on my experience most people will be slightly worse off financially over here; based on your experience from 2004 people will be better off. I guess the truth lies in the middle somewhere. Link to comment Share on other sites More sharing options...
Guest Pinhead Posted June 23, 2008 Share Posted June 23, 2008 Pinhead - sounds like you have spat the dummy! I'm making a simple point with this thread based on how I see things right here right now. I agree with some of the facts you have posted. You have disagreed with all the facts I have posted. You seem to want to compare the whole of Australia with London when it suits you, and other times you want to compare the whole of the UK with the whole of Australia. Using this you can win any argument. For example you go on about the average salary in the UK vs the average salary in Australia; then you compare the cost of rent in Melbourne against the cost of rent in London. It just doesn't tie up. If you want to do that, lets compare the average salary in London with the average salary in Melbourne and see where we stand... How can you say personal experiences are pointless - surely that is the whole point of this site. If it isn't I guess we will just have to post statistics on here! I think the bottom line is we will have to agree to disagree. Based on my experience most people will be slightly worse off financially over here; based on your experience from 2004 people will be better off. I guess the truth lies in the middle somewhere. Blimey, talk about over reaction!!:biglaugh: Link to comment Share on other sites More sharing options...
Guest UGandSMUG Posted June 23, 2008 Share Posted June 23, 2008 Feel free to take my comments with a pinch of salt, as I have yet to visit/live in OZ, but may well be heading for Melbourne/Sydney. Both sides of the argument are correct depending on a couple of key factors that only got briefly touched upon in other posts: 1) What industry are you in? I have spoken to people who earn the equivalant of half of their previous UK wages in OZ, yet both my own and my OHs respective industries pay about the same in OZ as they do in the UK. This makes a massive difference to peoples spare cash at the end of the month. I tell you for one that I couldn't afford to think about a move to OZ if I earnt 1/2 the wage. (Pinhead, I know you touched upon this on an earlier page.) 2) Research, Research, Research. BuckBuchanan's posts will be a wake up call for anyone that has yet to research things properly, which is definitely a good thing! The internet is a wonderful thing and all the answers (jobs, houses, food and travel) are on there somewhere. If you end up in another country unexpectedly worse off money wise and you're wondering how it happened? Well, you just did'nt do your research! Just my .02. Cheers. Doug Link to comment Share on other sites More sharing options...
Guest Pinhead Posted June 23, 2008 Share Posted June 23, 2008 I don't really remember anyone posting here saying they are moving to oz for a better salary. Most are either moving for a) better quality of life (this may include a pay cut for more time with family etc) b) things in the UK are so intolerable, poor, getting worse etc You're quite right I have been trying to get across that it's not clear cut that you will be much better or worse, people's circumstances are different as are their relative salaries to their oz equivalent. Link to comment Share on other sites More sharing options...
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