Guest NeilEB Posted June 4, 2010 Share Posted June 4, 2010 Hi all, First time poster here so please be gentle! Situation: I am married and have a 2 and a half year old son. We live in North London, and our combined wages are around £45k (wife works part-time so we have childcare costs as well). We have a fair amount of debt, but if we do move we will sell our house, which should allow us to clear most of it - the rest I would continue to pay back from Oz (I'd keep my UK bank account and transfer money into it to meet direct debits. We have just began the visa application for a Skilled Visa, but there is an opportunuty for me to have an internal move within my company. Ideally we were looking at Perth, but the internal move would be to Melbourne. Question: Is a salary of roughly $80k be enough to support my family? We'd probably be looking at SE Melbourne to live - maybe Elsternwick, or Balaclava that sort of area, and I would be working in Sprignvale. Also, what is Superannuation? It was mentioned as 10% when the salary was being discussed. Hopefully my wife wouldn't need to work, so that means we don;t need to worry about school fees for a year or so - but does anyone know what these are? I calculated that take home would be just over $4k per month. Rent I reckon would be around $1600 per month, and we would probably need a car. Would $2400 per month cover food costs, transport, car, utilities, and general "lifestyle" activities? Thanks for any help / advice Neil Link to comment Share on other sites More sharing options...
Guest gary12 Posted June 4, 2010 Share Posted June 4, 2010 It's do-able, I know if you are on a PR visa you can claim child benefit, not sure about other types of visa. It can be expensive here, 2nd hand cars are expensive, rent on a nice home could cost you over $400 a month I guess it comes down to how extravagant you are. You learn to shop around to cut costs, this takes a little getting used to. I have a feeling Elsternwick is both close to the sea and the city so may prove expensive. We are on PR and pay school fees (not private) to cover the cost of trips, stationary etc of about $200 per term. I am sure someone will be able to tell you if there are any tuition fees on top. A private school can cost anything from about $6k to $18k a year. I use an occasional care centre (3 hours a day) and pay $24 per session, just allows me a bit of me time which comes in handy when you have no one to help with childcare. The other thing that costs us alot of money, although won't be so much of an issue for you yet is the clubs our children are in (age 3 and 7) comes to about another $700 a term. With the exchange rate as it stands today you would be on a similar salary to that in the UK. You mention that you may need to pay back UK debts this could put a strain on you. I don't want to jump on any excitement you have but you do need to think long and hard as to how much you are prepared to economise and that any financial hardship you find adds to the stress of moving. When we arrived we were paying to top up a UK mortgage a shocking rent of $650 a month and it just about crippled us in that first year, using up most of our savings ontop of my hubbys salary. We now own a home but have (for us) a huge mortgage but we are fortunate that we still have a UK property that we will eventually sell. Super an is 9% best of luck I hope I haven't jumped too much on your dreams, Melbourne is a fantastic city and one that we really enjoy, it is a brilliant place to bring up children. Michelle Link to comment Share on other sites More sharing options...
Guest NeilEB Posted June 4, 2010 Share Posted June 4, 2010 Thanks for the quick and helpful reply. My wife and I have been talking about moving to Oz for a few years, and it really is getting to be now or never. I don't think you have killed the dream, but there is certainly a lot to think about, although the good thing is that we hopefully wont have to rely on my wife to work, meaning no childcare - the £500 a month a pay at the moment, really cuts into our wages. Also, we can take most of our furtniture with us, so at least we wont have to spend on that. I would take our car(s) with us, but frankly they aren't worth the transit costs. One question - what IS Superanuation? Is it basically a pension? And if I was quoted $80k + 10% Superannuation, does that mean the company pays that for me? Very confused.... Link to comment Share on other sites More sharing options...
Quinkla Posted June 4, 2010 Share Posted June 4, 2010 The company pays the 10% superannuation. It is supposed to buy a pension but will be worth pretty much zilch to you if you only get it for a couple of years. Please be aware that emigration is financially ruinous. It used not to be, but it is now. You really need to want to do it and be prepared to give up quite a lot to do it - and if you later change your mind you'll have to do it in reverse. Link to comment Share on other sites More sharing options...
Guest NeilEB Posted June 4, 2010 Share Posted June 4, 2010 Not that I'm doubting you, but why is it financially ruinous? Sounds like a very strong term. Expensive - definitely. But ruinous? Link to comment Share on other sites More sharing options...
Quinkla Posted June 4, 2010 Share Posted June 4, 2010 Not that I'm doubting you, but why is it financially ruinous? Sounds like a very strong term. Expensive - definitely. But ruinous? Because the up front costs are high - visa, flights, shipping, insurance. Add to that the amount of stuff you'll throw away and replace in Australia - and the stuff that you pay to have shipped but have to replace anyway before it arrives; the fire sale of your car, your home?, etc. Giving up pension plans mid stream and starting afresh, potential periods of unemployment, very high cost of living in Melbourne. Like I say, there are upsides too (lifestyles, climate, adventure, wine), but anyone who believes it to be in their immediate financial interest to emigrate is probably mistaken. Link to comment Share on other sites More sharing options...
Guest NeilEB Posted June 4, 2010 Share Posted June 4, 2010 Ok, I see your point, but here's the current situation. Our house is rented out and we are living with in-laws, so there's no immediate rush to sell. Our cars are worth practically nothing anyway. Furniture and most of our possensions are already boxed up. If need be, I can go out for a few weeks and wait for things to be set up, before my wife joins me with our son. Pensions can stay where they are - just wont be contributing any more (already have 3 plans, which now I think about it I should probably combine at some point). I wont go out without a job - put simply I can't afford not to. High living costs? Bearing in mind I live in London, and drive 30 miles to work (each way), are living costs really higher? That's a genuine question, not meant sarcastically, bearing in mind London is one of the most expensive cities in the world. But yes, I'm hoping for short term pain, long term gain to be honest - I'd liek to be able to give my son (and hopefully future children) a better life then I can give them here. Link to comment Share on other sites More sharing options...
Quinkla Posted June 4, 2010 Share Posted June 4, 2010 High living costs? Bearing in mind I live in London, and drive 30 miles to work (each way), are living costs really higher? That's a genuine question, not meant sarcastically, bearing in mind London is one of the most expensive cities in the world. I don't know, I moved from Edinburgh. It's a long time since I lived in London but I think that yes, Melbourne is still going to seem expensive to you. Link to comment Share on other sites More sharing options...
Quinkla Posted June 4, 2010 Share Posted June 4, 2010 But yes, I'm hoping for short term pain, long term gain to be honest - I'd liek to be able to give my son (and hopefully future children) a better life then I can give them here. That's a realistic assessment and on that basis, it could be a good decision you are taking. I hope so. Either way it will be an adventure and if you don't go through with it you'll always wonder. Link to comment Share on other sites More sharing options...
Guest NeilEB Posted June 4, 2010 Share Posted June 4, 2010 Either way it will be an adventure and if you don't go through with it you'll always wonder. That's exactly the phrase my wife and I use. I'd rather try it (Aussie Govt permitting!), fail and come back here, then turn around when I'm 50 and think 'what if?' Link to comment Share on other sites More sharing options...
Quinkla Posted June 4, 2010 Share Posted June 4, 2010 That's the spirit. I hope it works for you and there's no reason why it shouldn't. Link to comment Share on other sites More sharing options...
Guest Toomers Posted June 4, 2010 Share Posted June 4, 2010 Hi, try this little web site Payrise Calculator it may help give an understanding of the cost of living. Good luck. Link to comment Share on other sites More sharing options...
Guest NeilEB Posted June 4, 2010 Share Posted June 4, 2010 Thanks - I have seen that website before, but that certainly answers my qeustion around take home pay (looks like I under-estimated by about $600 per month which is nice. What does that Superannuation check box do? I've been led to believe the company will pay 10% SA on top of my salary - if I leave that unchecked it increase my monthly take home to almost $1k more then I had calculated, but I don't know if that is realistic? Link to comment Share on other sites More sharing options...
Quinkla Posted June 4, 2010 Share Posted June 4, 2010 What does that Superannuation check box do? I've been led to believe the company will pay 10% SA on top of my salary - if I leave that unchecked it increase my monthly take home to almost $1k more then I had calculated, but I don't know if that is realistic? If you ever find someone advertising a job at $X0,000 including superannuation then it will deduct the superannuation you would be paying. But most normal employers would advertise a job at $X0,000 plus superannuation. Link to comment Share on other sites More sharing options...
olly Posted June 4, 2010 Share Posted June 4, 2010 Good luck with your plans. Just a thought - $80K is fine to live on. The area you are are looking at to live is very expensive, you can get better value a bit further out, there are freeways/tollways to connect you to everywhere, so you could live a bit further out than the city. Depends what you want of course. Somewhere like Doncaster/Templestowe is nice, gettable to Springvale on Eastern fwy/Eastlink and great schools for the kids, both public, private and Catholic. Park (your car) and ride (on the bus) facility into the city as well, about 25 mins) Also some employers do 'salary sacrificing' which is taking some of your salary with huge tax savings and making a payment to something of your choice (i.e. credit card, mortgage) and it is well worth it. Ask about it. You can also put this into your super if you want to. Link to comment Share on other sites More sharing options...
Kel1 Posted June 12, 2010 Share Posted June 12, 2010 Is it generally quite expensive to live in melbourne? People have mentioned on here it is more expensive than London?! Eek! I hope the exchange rate is good for me in October! Link to comment Share on other sites More sharing options...
Quinkla Posted June 12, 2010 Share Posted June 12, 2010 Is it generally quite expensive to live in melbourne? People have mentioned on here it is more expensive than London?! Eek! I hope the exchange rate is good for me in October! It is very expensive to live in Melbourne. I have lived in both London and Melbourne and I find Melbourne way more expensive - but your mileage may vary. Depends what you like doing. Link to comment Share on other sites More sharing options...
Kel1 Posted June 12, 2010 Share Posted June 12, 2010 It's funny because you hear such conflicting views, but then i guess salaries are generally better. At least for the work we have been looking at doing when we get there. What concerns me most is rent and bills. I have done lots of research and then rent seems ok for a decentish flat. But then we are going for a year, with no responsibilities like children etc, so can move around if needs be quite freely. I do think i will need more money than i first thought though. The weather, climate, lifestyle and totally different culture will be so worth it though!! :biggrin: Link to comment Share on other sites More sharing options...
Quinkla Posted June 12, 2010 Share Posted June 12, 2010 TBH, rent is a known amount and so is the salary. The costs that will surprise you are the food (especially eating out), drink, entertainment and internet. It's great fun, but be aware that Australia, despite the image, is a hardworking culture with long hours, a relatively frugal lifestyle and quite a thin safety net. Link to comment Share on other sites More sharing options...
Pond321 Posted June 13, 2010 Share Posted June 13, 2010 If you are coming on a 457 or temporary visa then you may be claim LAFHA (living away from home allowance). Your employer has to offer you this scheme (i.e, it is not automatic that you will get it), but if they do, it will knock about 40% off your monthly rental cost via a tax rebate against your salary. Link to comment Share on other sites More sharing options...
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