What would you do?

[ozuk]

I can't decide what to do. 

I decided to come to Australia last year as family reside here. I know no other people in the UK.

I am on a bridging visa A at the moment. 

The plan was to invest money I had saved and draw an income as I have no qualifications or job. 

I was looking to get 5% monthly interest in order for me to be able to pay rent, utilities etc.

Due to Coronavirus I'm not sure if I will be able to get 5% monthly now. 

Even before Coronavirus I think 5% was very optimistic.

So now I'm stuck as I have no income unless markets recover.

What would you do? 

 

[starlight7]

Which state are you in? Have to say if you are in Victoria you are in trouble but elsewhere you might be able to get a job.

[Paul1Perth]

3 hours ago, ozuk said:

I can't decide what to do. 

I decided to come to Australia last year as family reside here. I know no other people in the UK.

I am on a bridging visa A at the moment. 

The plan was to invest money I had saved and draw an income as I have no qualifications or job. 

I was looking to get 5% monthly interest in order for me to be able to pay rent, utilities etc.

Due to Coronavirus I'm not sure if I will be able to get 5% monthly now. 

Even before Coronavirus I think 5% was very optimistic.

So now I'm stuck as I have no income unless markets recover.

What would you do? 

 

I think you're going to have to go back to the UK mate. Might have to wait awhile though.

[newjez]

3 hours ago, ozuk said:

I can't decide what to do. 

I decided to come to Australia last year as family reside here. I know no other people in the UK.

I am on a bridging visa A at the moment. 

The plan was to invest money I had saved and draw an income as I have no qualifications or job. 

I was looking to get 5% monthly interest in order for me to be able to pay rent, utilities etc.

Due to Coronavirus I'm not sure if I will be able to get 5% monthly now. 

Even before Coronavirus I think 5% was very optimistic.

So now I'm stuck as I have no income unless markets recover.

What would you do? 

 

Are you cashed up?

If you are, (and I'm not qualified to give advice), I would look at buying shares in energy companies, oil and gas, possibly banks. They generally provide a decent dividend. They are generally fairly solid. They have all taken a big hit, so there could be upside as well. I wouldn't put all my money in one company, say pick 6 different companies in different sectors. Do some basic research on Google. You can always have a chat with a financial advisor.

[Tulip1]

Can you not stay with the family you moved there to be near whilst job hunting. If not, it’s back to the U.K. I reckon.  I think the chances of getting a 5% return on savings/investments anytime soon anywhere is a very optimistic dream. 

[Quoll]

Golly, 5%?! Where on earth would you Be getting that sort of return?  If you have no qualifications, what visa are you bridging to? All depending on what you’ve applied for, you could be on that visa for years and your chances of getting a job on a bridging visa are going to be slim too.  
 

I think maybe you will need to move back as you’ve obviously been successful to have amassed large savings. You might need to try and slot back in to what you were doing. Surely you know people in U.K. if you’ve grown up there, you might have to be around friends rather than family.

[Tulip1]

I think you need to have a good think about whether you can afford to stay there. In one post you say you need 5% interest from your savings in order to pay your rent/bills and in another post you say you can afford to pay any medical bills that you incur over the possible 50 year wait for your visa. I think you’d need to be really quite wealthy to make such a statement which doesn’t sit with having to make 5% interest on savings just to survive. 

[newjez]

1 hour ago, Quoll said:

Golly, 5%?! Where on earth would you Be getting that sort of return?  If you have no qualifications, what visa are you bridging to? All depending on what you’ve applied for, you could be on that visa for years and your chances of getting a job on a bridging visa are going to be slim too.  
 

I think maybe you will need to move back as you’ve obviously been successful to have amassed large savings. You might need to try and slot back in to what you were doing. Surely you know people in U.K. if you’ve grown up there, you might have to be around friends rather than family.

Most big bank shares pay that even with the covid impact.

https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.fool.com.au/2020/07/30/here-are-the-dividends-this-broker-thinks-cba-and-the-big-four-will-pay-in-2020/amp/&ved=2ahUKEwiboKmviY_rAhVknVwKHSZ-AUcQFjAQegQIBBAL&usg=AOvVaw0C8f-peTP7r7LkQOxnbDkZ&ampcf=1&cshid=1597008872675

You don't put money in the bank.

You buy the bank. Or a bit of it.

Edited August 9, 2020 by newjez

[Tulip1]

14 minutes ago, newjez said:

Most big bank shares pay that even with the covid impact.

https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.fool.com.au/2020/07/30/here-are-the-dividends-this-broker-thinks-cba-and-the-big-four-will-pay-in-2020/amp/&ved=2ahUKEwiboKmviY_rAhVknVwKHSZ-AUcQFjAQegQIBBAL&usg=AOvVaw0C8f-peTP7r7LkQOxnbDkZ&ampcf=1&cshid=1597008872675

You don't put money in the bank.

You buy the bank. Or a bit of it.

The dividends are generous with bank shares. Still, if your £10k of shares becomes £7k in value over a period of months then getting the dividends still doesn’t excite, you’ll still have less than what you put in. 

Edited August 9, 2020 by Tulip1

[Parley]

38 minutes ago, newjez said:

Most big bank shares pay that even with the covid impact.

https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.fool.com.au/2020/07/30/here-are-the-dividends-this-broker-thinks-cba-and-the-big-four-will-pay-in-2020/amp/&ved=2ahUKEwiboKmviY_rAhVknVwKHSZ-AUcQFjAQegQIBBAL&usg=AOvVaw0C8f-peTP7r7LkQOxnbDkZ&ampcf=1&cshid=1597008872675

You don't put money in the bank.

You buy the bank. Or a bit of it.

That is not interest. Dividends are paid 6 monthly.

[Toots]

12 hours ago, ozuk said:

I can't decide what to do. 

I decided to come to Australia last year as family reside here. I know no other people in the UK.

I am on a bridging visa A at the moment. 

The plan was to invest money I had saved and draw an income as I have no qualifications or job. 

I was looking to get 5% monthly interest in order for me to be able to pay rent, utilities etc.

Due to Coronavirus I'm not sure if I will be able to get 5% monthly now. 

Even before Coronavirus I think 5% was very optimistic.

So now I'm stuck as I have no income unless markets recover.

What would you do? 

 

 

Yes 5% was overly optimistic and it's tough if you don't have a job.  Your family should help you out.  Do they understand how worried you are?

[BobHatton]

You certainly wouldn't get anywhere near 5% from a 'normal' bank savings account - you'd be lucky to get 1.5%! As another poster mentioned, you say that you'd need 5% interest on your savings to pay the rent and utilities etc. Let's make an average of $1600 a month rent and $250 a month on utilities = $1850 a month so let's say $2000 to be sure. If 5% interest on your savings would cover this then you'd have to be seriously rich and have at least $500,000 in savings. I'm not saying you're not rich but to think of living like that then you probably don't need a job!

[Marisawright]

@ozuk, I can understand your desire to be close to your family, but your plan was always unrealistic. 

I'm assuming you have applied for a Remaining Relative Visa and your bridging visa has no work rights?  It is possible to apply for work rights, but you need to show hardship.  If you have a lot of money in savings, you can't apply.   

One possible avenue is to buy a home with your savings, then you'll have no income and could claim hardship.  However, I don't know if that is a valid strategy - and buying a house on a bridging visa is expensive. You should have a consultation with a good migration agent to be certain.

The risk would be that you wouldn't be able to find work in the current climate.  

If you're determined to stay without work rights, then you need proper financial advice on how to invest your money, probably in the share market in EFT's or blue chip stocks.  However even then, I doubt your plan will work, unless you have well over a million dollars.  It depends how many more years you expect to live, though.

Edited August 10, 2020 by Marisawright

[newjez]

3 hours ago, Parley said:

That is not interest. Dividends are paid 6 monthly.

Why does that make a difference?

[newjez]

1 hour ago, Marisawright said:

@ozuk, I can understand your desire to be close to your family, but your plan was always unrealistic. 

I'm assuming you have applied for a Remaining Relative Visa and your bridging visa has no work rights?  It is possible to apply for work rights, but you need to show hardship.  If you have a lot of money in savings, you can't apply.   

One possible avenue is to buy a home with your savings, then you'll have no income and could claim hardship.  However, I don't know if that is a valid strategy - and buying a house on a bridging visa is expensive. You should have a consultation with a good migration agent to be certain.

The risk would be that you wouldn't be able to find work in the current climate.  

If you're determined to stay without work rights, then you need proper financial advice on how to invest your money, probably in the share market in EFT's or blue chip stocks.  However even then, I doubt your plan will work, unless you have well over a million dollars.  It depends how many more years you expect to live, though.

A million dollars isn't an unrealistic sum for someone who owned a house in the UK, or in sum areas of Australia nowadays.

[ozuk]

15 hours ago, starlight7 said:

Which state are you in? Have to say if you are in Victoria you are in trouble but elsewhere you might be able to get a job.

Western Australia. The bridging visa has a no work condition. 

[ozuk]

9 hours ago, Tulip1 said:

Can you not stay with the family you moved there to be near whilst job hunting. If not, it’s back to the U.K. I reckon.  I think the chances of getting a 5% return on savings/investments anytime soon anywhere is a very optimistic dream. 

No work allowed on the bridging visa. 

 

2 hours ago, Marisawright said:

@ozuk, I can understand your desire to be close to your family, but your plan was always unrealistic. 

I'm assuming you have applied for a Remaining Relative Visa and your bridging visa has no work rights?  It is possible to apply for work rights, but you need to show hardship.  If you have a lot of money in savings, you can't apply.   

One possible avenue is to buy a home with your savings, then you'll have no income and could claim hardship.  However, I don't know if that is a valid strategy - and buying a house on a bridging visa is expensive. You should have a consultation with a good migration agent to be certain.

The risk would be that you wouldn't be able to find work in the current climate.  

If you're determined to stay without work rights, then you need proper financial advice on how to invest your money, probably in the share market in EFT's or blue chip stocks.  However even then, I doubt your plan will work, unless you have well over a million dollars.  It depends how many more years you expect to live, though.

The problem is I don't have enough to buy a house or even an apartment. 

My original plan was to go to Spain as you can rent there very cheaply unlike Australia, but with uncertainty over Brexit I decided not to go as I wouldn't be able to stay there for more than 3 months. 

[ozuk]

4 hours ago, BobHatton said:

You certainly wouldn't get anywhere near 5% from a 'normal' bank savings account - you'd be lucky to get 1.5%! As another poster mentioned, you say that you'd need 5% interest on your savings to pay the rent and utilities etc. Let's make an average of $1600 a month rent and $250 a month on utilities = $1850 a month so let's say $2000 to be sure. If 5% interest on your savings would cover this then you'd have to be seriously rich and have at least $500,000 in savings. I'm not saying you're not rich but to think of living like that then you probably don't need a job!

Yes that's what I was thinking. 

Before I left the UK in July 2019 I was given financial advice. I was told to invest in bonds in a low risk portfolio. That way I would get 5-10%. I was very skeptical about being able to get that much monthly as there are ups and downs and some years I might not get anything. I could live off $1500 a month here very easily. I am doing that right now, but once the money runs out I'm stuck. Really needed to invest. 

I've paid £2500 so far for the visa with one payment left, so I can't withdraw the visa application as I'd lose it all. I don't think they give refunds.

Edited August 10, 2020 by ozuk

[Marisawright]

10 minutes ago, ozuk said:

No work allowed on the bridging visa. 

 

The problem is I don't have enough to buy a house or even an apartment. 

My original plan was to go to Spain as you can rent there very cheaply unlike Australia, but with uncertainty over Brexit I decided not to go as I wouldn't be able to stay there for more than 3 months. 

You can apply for work rights if you can demonstrate hardship. 

If you don’t have enough money to buy an apartment then there’s no way you have enough savings for more than a few years in Australia. Go home where you can access benefits 

Edited August 10, 2020 by Marisawright

[Parley]

1 hour ago, newjez said:

Why does that make a difference?

I don't disagree with your recommendation but the risk is greater.

Diversification is important if investing a lot of money in the sharemarket. It would not be wise to put $500000 in one bank stock. And even spreading amongst bank stocks is not providing diversification outside the banking sector..

There is no government guarantee protecting your capital when you a bank's shares as opposed to putting the money in a bank account

 

Edited August 10, 2020 by Parley

[Tulip1]

59 minutes ago, ozuk said:

Yes that's what I was thinking. 

Before I left the UK in July 2019 I was given financial advice. I was told to invest in bonds in a low risk portfolio. That way I would get 5-10%. I was very skeptical about being able to get that much monthly as there are ups and downs and some years I might not get anything. I could live off $1500 a month here very easily. I am doing that right now, but once the money runs out I'm stuck. Really needed to invest. 

I've paid £2500 so far for the visa with one payment left, so I can't withdraw the visa application as I'd lose it all. I don't think they give refunds.

In July 2019 investments were doing quite well so you may well have got a reasonable return even if you put your money in low risk options (5-10% optimistic still) But the trouble with investments is that they can go up or down. I have investments in a pension pot and they’ve taken a bashing over the last six months. Hopefully they will recover but it is likely to take years, such is the risk with investing. 
I think you need to look to get work rights on your bridging visa. I can’t see how you will survive long term without that.  Also, your well being will surely suffer unless you’re happy to never work. 

[MacGyver]

The first thing I would do is have a free chat with one of the agents on here to discuss whether you might have success in applying to have the no work condition removed from your bridging visa. If they feel you have a chance, a small investment in their fees to lodge that application would be money well spent. Even a small part time job might cover your living costs and protect your hard earned savings.

Apart from that the biggest question is what family support do you have in Australia? I only ask because it sounds like you moved to Australia specifically to be near them, not necessarily through a desire to live in Australia. It sounds harsh, but if family aren't stepping up to be supportive, I'd be considering whether its worth the financial pain to be near them.

[newjez]

1 hour ago, Parley said:

I don't disagree with your recommendation but the risk is greater.

Diversification is important if investing a lot of money in the sharemarket. It would not be wise to put $500000 in one bank stock. And even spreading amongst bank stocks is not providing diversification outside the banking sector..

There is no government guarantee protecting your capital when you a bank's shares as opposed to putting the money in a bank account

 

I did initially suggest six shares in three different industries, and that she should speak with a financial advisor. An advisor should be able to recommend an income product that diversifies as much risk away as possible.

[Toots]

2 hours ago, MacGyver said:

The first thing I would do is have a free chat with one of the agents on here to discuss whether you might have success in applying to have the no work condition removed from your bridging visa. If they feel you have a chance, a small investment in their fees to lodge that application would be money well spent. Even a small part time job might cover your living costs and protect your hard earned savings.

Apart from that the biggest question is what family support do you have in Australia? I only ask because it sounds like you moved to Australia specifically to be near them, not necessarily through a desire to live in Australia. It sounds harsh, but if family aren't stepping up to be supportive, I'd be considering whether its worth the financial pain to be near them.

I am thinking the same thing.  What with the poster's ill health he/she says they are suffering from, lack of funds to live comfortably and not much hope of getting a job here plus the family not giving support ...................  I can't see much point staying in Australia.  Coming to Australia to be near family seems to have been badly planned.

[ozuk]

2 hours ago, MacGyver said:

The first thing I would do is have a free chat with one of the agents on here to discuss whether you might have success in applying to have the no work condition removed from your bridging visa. If they feel you have a chance, a small investment in their fees to lodge that application would be money well spent. Even a small part time job might cover your living costs and protect your hard earned savings.

Apart from that the biggest question is what family support do you have in Australia? I only ask because it sounds like you moved to Australia specifically to be near them, not necessarily through a desire to live in Australia. It sounds harsh, but if family aren't stepping up to be supportive, I'd be considering whether its worth the financial pain to be near them.

As I told immigration family don't keep in touch. Have only seen them once since last Xmas. They live 3 miles away but they don't call.  Won't even respond to emails. They don't want me going to see them as they're paranoid about coronavirus. They were supposed to help me with the visa but I got no help and had to figure it all out which wasnt easy. They've been here 15 years so they know Australia better than I do. 

The reason I came here was because I wasn't sure I could stay in Spain due to Brexit. I wanted to go there as rent is very cheap and I could afford it, plus I like Spain. I need a warm climate, the UK was too depressing with the cold, wet weather for most of the year. So I came to Australia.