newjez Posted August 19, 2011 Share Posted August 19, 2011 I think the days of 2.2 are long gone to be honest, expecting it to return to that sort of level in the medium term is pretty unrealistic - albeit that the single biggest driver of exchange rates is relative interest rates UK interest rates aren't going to climb sharply for a long time. It's hard to be so certain on Australian ones From what I've seen in terms of prices I don't think 2.2 operates as a good guide to relative price levels either. Current OECD figures (http://stats.oecd.org/Index.aspx?DataSetCode=CPL) suggest a multiplier of 1.32 to the exchange rate in terms of purchasing power parity - this would work out to typical A$ prices being 1.9-2 x the sterling figures - i.e. if something costs £1 in the UK, you could expect it to cost A$1.90 to A$2 in Australia It all depends on what you spend your money on though, and of course tax also makes a big difference. So if your spending mix involves a lot of fuel, fresh food or other things that are comparitively cheap in Australia, your effective multiplier will be a fair bit lower than that. But if you want to buy lots of vehicles, packaged/processed food and the like, it will be more I mentioned elsewhere that there doesn't appear to be a great deal of logic to what's cheap and what's not. I'm about to buy a pushbike in the UK for £700, because in Australia the same bike would cost me A$2000. On the flipside, I was considering buying a replacement for my old iMac as it's on its last legs - but the model I'd buy is £999 in the UK, and only A$1399 over there - so I'll buy in Australia Give it nine months and you can quote me on that. Quote Link to comment Share on other sites More sharing options...
Guest liltman Posted August 19, 2011 Share Posted August 19, 2011 Give it nine months and you can quote me on that. Look guy's, i'm moving to Brisbane with the family soon and in my opinion i don't care about exchange rates, what things cost between UK and Aus. I'm going to be living in Aus so what it costs to do grocery shopping is what it costs, what it costs to rent, etc... i dont live in the UK no more so why compare. I see what people are saying and understand them but you're in a new country with a new life, job, etc.... why keep comparing? ..... Forget the UK, all its problems, just remember your family and friends, what good times you had and get on with your life...... :biggrin: :hug: I am sorry, but thats how i see it... I've lived in a few different countries and i just do what i have to do..... :arghh: :wink: Quote Link to comment Share on other sites More sharing options...
pintpot Posted August 19, 2011 Share Posted August 19, 2011 Look guy's, i'm moving to Brisbane with the family soon and in my opinion i don't care about exchange rates, what things cost between UK and Aus. I'm going to be living in Aus so what it costs to do grocery shopping is what it costs, what it costs to rent, etc... i dont live in the UK no more so why compare. I see what people are saying and understand them but you're in a new country with a new life, job, etc.... why keep comparing? ..... Forget the UK, all its problems, just remember your family and friends, what good times you had and get on with your life...... :biggrin: :hug: I am sorry, but thats how i see it... I've lived in a few different countries and i just do what i have to do..... :arghh: :wink: 100% agree! It only matters when you're working out whether or not you can afford to make the move. Once you've moved, budget for everything in the currency where you are and forget about it - unless you are moving big lumps of capital around and want to get the timing "right" - or as right as you can Quote Link to comment Share on other sites More sharing options...
pintpot Posted August 19, 2011 Share Posted August 19, 2011 Give it nine months and you can quote me on that. Quote you on what? ??? Quote Link to comment Share on other sites More sharing options...
Guest NeilEB Posted August 19, 2011 Share Posted August 19, 2011 Look guy's, i'm moving to Brisbane with the family soon and in my opinion i don't care about exchange rates, what things cost between UK and Aus. I'm going to be living in Aus so what it costs to do grocery shopping is what it costs, what it costs to rent, etc... i dont live in the UK no more so why compare. I see what people are saying and understand them but you're in a new country with a new life, job, etc.... why keep comparing? ..... Forget the UK, all its problems, just remember your family and friends, what good times you had and get on with your life...... :biggrin: :hug: I am sorry, but thats how i see it... I've lived in a few different countries and i just do what i have to do..... :arghh: :wink: But that's what people are saying and where this 2.2 figure comes from. No-one is talking about exchange rates - they're irrelevant once you've brought your money over. What is important is 'what is a reasonable wage' - now no-one can answer that, as it depends on so many things. So instead people say, take your wages in £s, and multiply it by 2.2to find the figure you need to earn in $s to have a 'similar' lifestyle. So if you earn £50k here, you need to earn $110k to have similar buying power. Quote Link to comment Share on other sites More sharing options...
lynn22 Posted August 19, 2011 Author Share Posted August 19, 2011 For us I think the 'scale' that they speak about (the 2.2) is only important to established a ball part figure of salary he should be seeking. After that then I agree.. there will be absolutely no point in comparing. I think its a "holiday way of thinking" though isnt it... I mean you go to florida & spend a day in wallmart (or is that just us :biglaugh:) & convert the money to what that would be in sterling marvelling at how cheap it is out there compared to here then you come home after 2 weeks & spend the next 3 months converting everything back to dollars & grumbling about the cost of stuff here at home :rolleyes: (although there probably isnt so much of a gap these past couple of years) Quote Link to comment Share on other sites More sharing options...
Guest NeilEB Posted August 19, 2011 Share Posted August 19, 2011 Yes becuase in that case exchange rates are important, as effectively you you are earning in one country and spending in another. When you move somewhere else, exchange ratesa are unimportant, but the 2.2 figure is still a good ballpark Quote Link to comment Share on other sites More sharing options...
basil Posted August 19, 2011 Share Posted August 19, 2011 I wouldn't worry, I think you and your DH are looking roughly for the same figure, just a different way of calculating it. You say... £90k x 2 =180.....therefore need to earn c $180k Your DH is saying to use 1.4 but doing a different clac entirely... £90k x 1.4 = 126 ......therefore need to earn c £126k.....then convert at current exchange rate c1.5 = $189k At least that's how i've interpreted what he's trying to say from what you've written! Quote Link to comment Share on other sites More sharing options...
Guest liltman Posted August 19, 2011 Share Posted August 19, 2011 But that's what people are saying and where this 2.2 figure comes from. No-one is talking about exchange rates - they're irrelevant once you've brought your money over. What is important is 'what is a reasonable wage' - now no-one can answer that, as it depends on so many things. So instead people say, take your wages in £s, and multiply it by 2.2to find the figure you need to earn in $s to have a 'similar' lifestyle. So if you earn £50k here, you need to earn $110k to have similar buying power. Hi Guy's, why take your wages and x 2.2. As you stated " you earn £50k here, you need to earn $110k to have similar buying power " :smile: . Similar buying power... How ... Look at properties in the UK, 2 Bed terraced down south = approx £150,000 at moment ( my parents house for sale as example ) so in Aus i would need to earn $110k to buy similar costing $375k. I know for that money i can buy double the size of house. I know things cost more in Aus like beer, fags, cars and so on but moving to Aus is not about having a similar life style, its about having a better time in life and money in my opinion is not the answer. You can do hell of a lot more in Aus that requires no money at all and i think things like that are more important than knowing i moving half way round world for a " similar lifestyle" :biggrin: :wink: :hug: Quote Link to comment Share on other sites More sharing options...
Guest NeilEB Posted August 19, 2011 Share Posted August 19, 2011 Hi Guy's, why take your wages and x 2.2. As you stated " you earn £50k here, you need to earn $110k to have similar buying power " :smile: . Similar buying power... How ... Look at properties in the UK, 2 Bed terraced down south = approx £150,000 at moment ( my parents house for sale as example ) so in Aus i would need to earn $110k to buy similar costing $375k. I know for that money i can buy double the size of house. I know things cost more in Aus like beer, fags, cars and so on but moving to Aus is not about having a similar life style, its about having a better time in life and money in my opinion is not the answer. You can do hell of a lot more in Aus that requires no money at all and i think things like that are more important than knowing i moving half way round world for a " similar lifestyle" :biggrin: :wink: :hug: A) Not everyone lives in the South East (I do, my 2 bed house will sell for around £230k) B) Things in Oz ARE more expensive (using the exchange rate) - might be fine buyung a house, but what about affording clothes, food etc? C) Can't compare houses in England and Oz - English house are all brick built and meant to be for an investment. I get the feeling that Oz is similar to Florida - built from wood and not necessarily 'built for life' - I may be wrong about that however. D) Moving away from friends and family is hard enough - if you find that the $60k you are on can't support you without some hefty sacrifices, it's and added pressure you don't need. Quote Link to comment Share on other sites More sharing options...
Guest liltman Posted August 19, 2011 Share Posted August 19, 2011 A) Not everyone lives in the South East (I do, my 2 bed house will sell for around £230k) B) Things in Oz ARE more expensive (using the exchange rate) - might be fine buyung a house, but what about affording clothes, food etc? C) Can't compare houses in England and Oz - English house are all brick built and meant to be for an investment. I get the feeling that Oz is similar to Florida - built from wood and not necessarily 'built for life' - I may be wrong about that however. D) Moving away from friends and family is hard enough - if you find that the $60k you are on can't support you without some hefty sacrifices, it's and added pressure you don't need. Hi Neil, I understand what you and others are saying :biggrin:, i just don't understand why people have to compare or 2.2. Most people on PIO from what i have read are having the times of their lives regardless of incomes, what things cost. As i said in my opinion i dont take into "costs", i just live to my means in any country i've lived in :biggrin: and never regretted it. :smile: Quote Link to comment Share on other sites More sharing options...
lynn22 Posted August 19, 2011 Author Share Posted August 19, 2011 I wouldn't worry, I think you and your DH are looking roughly for the same figure, just a different way of calculating it. You say... £90k x 2 =180.....therefore need to earn c $180k Your DH is saying to use 1.4 but doing a different clac entirely... £90k x 1.4 = 126 ......therefore need to earn c £126k.....then convert at current exchange rate c1.5 = $189k At least that's how i've interpreted what he's trying to say from what you've written! I think you may have just hit the nail on the head :yes: But we got so heated in our argument then confused both ourselves & didnt have a bloody clue what each other was trying to say :laugh: Which is why we left it well alone LOL. Quote Link to comment Share on other sites More sharing options...
jay290901 Posted August 19, 2011 Share Posted August 19, 2011 Lynn22 I am currently living in Perth (for almost three years) and originally from Aberdeenshire. We are heading home in a couple of months. Please PM me if you would like me to provide you with details of the costs/experiences we have had here or anything else you want to pick my brain about. We also have two young children. Quote Link to comment Share on other sites More sharing options...
fish.01 Posted August 19, 2011 Share Posted August 19, 2011 As others have said the 2.2 has nothing to do with exchange rates. It is the difference in average salaries between the 2 countries that someone worked out a while ago. The percentage of your wage it takes to but something is what counts. So if something is 5% of your aussie wage or 5% of your british wage they cost the same. If the exchange rate drops dramatically it does not affect this 5% cost in either country. That is why the exchange rate is almost meaningless when comparing which country is dearer for something or working out a reasonable salary. So roughly your wage should be 2.2 more to have the same buying power. This is just a country wide massive generalisation though - moving from small town to big city can obviously skew average wages hugely. Quote Link to comment Share on other sites More sharing options...
Guest NeilEB Posted August 19, 2011 Share Posted August 19, 2011 Hi Neil, I understand what you and others are saying :biggrin:, i just don't understand why people have to compare or 2.2. Most people on PIO from what i have read are having the times of their lives regardless of incomes, what things cost. As i said in my opinion i dont take into "costs", i just live to my means in any country i've lived in :biggrin: and never regretted it. :smile: That's fine and sensible and it sounds like you've moved around a lot. But if someone is one £100k here, and take up a job for $130k their lifestyle will have to change accordingly. £100k in the UK, can buy a lovely house, expensive clothes, expensive luxury car, lovely holidays. $130k in Aus can definitely sustain you, but if you have to live in a smaller house, and give up those fancy holidays, a lot of people will think "why bother". That is what the 2.2 rate (roughly) does. It's not fool-proof, and no-one is saying that if you only earn 1.9 times your salary you can't live in Oz - but your lifestyle in terms of disposable cash will definitely take a hit. It's important to make people aware of that. Saying "it's fine, you can buy a tent for a fiver, live on the beach for free and eat food out of dustbins and still have a great life in Oz" is misleading. (please note, exagerration for effect) Quote Link to comment Share on other sites More sharing options...
Guest littlesarah Posted August 22, 2011 Share Posted August 22, 2011 My post was ignored, but I still reckon that the most sensible way is to look at what you'd need to spend in Australia in order to have the sort of lifestyle you want. Then you can compare that to the salary you're likely to have/have been offered/are prepared to accept. If I multiplied my UK salary by 2.2, we should be on our uppers! And yet, we have a bigger mortgage than we did in Britain, and my husband earns a lot less here too. So that multiplier doesn't make sense for us. I can explain the difference (but it's far too dull to go into here), but we don't have a significantly different lifestyle. Anyway, as I'm here, none of this really matters to me now, so I'll get back in my box...:wacko: Quote Link to comment Share on other sites More sharing options...
sumbler Posted August 22, 2011 Share Posted August 22, 2011 Hi..Im not ignoring your post!...I totally agree...after visiting Perth on an orientation visit we were initially shocked at the cost of things...food,cars...a pack of 6 cadbury mini rolls were £3.50!...but the job my hubby has been offered is double his uk salary...so it is all relevant!...We are not coming to australia to try and be millionaires!:biglaugh:....its about the outside lifestyle and hopefully a happier and more sociable place for our family to live!....where in Perth do you live? Nic x Quote Link to comment Share on other sites More sharing options...
Guest littlesarah Posted August 23, 2011 Share Posted August 23, 2011 Hi..Im not ignoring your post!...I totally agree...after visiting Perth on an orientation visit we were initially shocked at the cost of things...food,cars...a pack of 6 cadbury mini rolls were £3.50!...but the job my hubby has been offered is double his uk salary...so it is all relevant!...We are not coming to australia to try and be millionaires!:biglaugh:....its about the outside lifestyle and hopefully a happier and more sociable place for our family to live!....where in Perth do you live? Nic x I live in NSW. Where we're having a great time! I've bever been to Perth, though I'm sure it's only a matter of time before we visit! Some things are more expensive, some things are cheaper (compared to the UK). Overall I don't feel that we're struggling financially (though there are only two of us, and things would be harder if we had children), but I think it's also about the kind of things that are important. I think people just prefer the convenience of multiplying their current salary by another figure to get an idea of whether they can 'afford' to live in Australia. For me, I was more inclined to look at what things cost vs what we could earn, but that takes a lot longer. I knew I was going to come here anyway, so money wasn't really a consideration. Anyway, I love where we live, I enjoy my new job, and I have a happy husband too! So I'm pretty happy with the way things turned out, so far. Quote Link to comment Share on other sites More sharing options...
Guest NeilEB Posted August 23, 2011 Share Posted August 23, 2011 If I multiplied my UK salary by 2.2, we should be on our uppers! And yet, we have a bigger mortgage than we did in Britain, and my husband earns a lot less here too. So that multiplier doesn't make sense for us. Just curious - what was the 'multiplier' if you used your combined income? Quote Link to comment Share on other sites More sharing options...
Guest littlesarah Posted August 24, 2011 Share Posted August 24, 2011 Based on what I earned in my last job in the UK, plus hubby's annual wages, we'd probably have to multiply that by 1.8 to arrive at our combined gross income here. Our combined income would be greater if my husband still worked 44-50 hours a week in a permanent position in his trade, rather than on a casual contract in a different field. So we're not really comparing 'like with like'. I never did the sort of calculation that people refer to, because I could see significant room for skewing of the results, and I knew that we'd just live in the sort of property and area we could afford, buy the sort of car we could, etc. I can see that it's a lot easier to take that approach when you don't have children. Quote Link to comment Share on other sites More sharing options...
BackToAdelaide Posted August 24, 2011 Share Posted August 24, 2011 A) Not everyone lives in the South East (I do, my 2 bed house will sell for around £230k) B) Things in Oz ARE more expensive (using the exchange rate) - might be fine buyung a house, but what about affording clothes, food etc? C) Can't compare houses in England and Oz - English house are all brick built and meant to be for an investment. I get the feeling that Oz is similar to Florida - built from wood and not necessarily 'built for life' - I may be wrong about that however. D) Moving away from friends and family is hard enough - if you find that the $60k you are on can't support you without some hefty sacrifices, it's and added pressure you don't need. Built from wood...............?? Mostly brick I think you'll find! Quote Link to comment Share on other sites More sharing options...
Guest NeilEB Posted August 25, 2011 Share Posted August 25, 2011 Built from wood...............?? Mostly brick I think you'll find! Yeah ignore me, not sure where I got that from......Florida maybe? Quote Link to comment Share on other sites More sharing options...
Guest katewhite Posted August 25, 2011 Share Posted August 25, 2011 x2 about right - been living in WA 6 years and cost of living gone up hugely in that time. Groceries twice the price of UK (currently in UK so have compared a whole shopping list!), petrol about 1/3 cheaper in Oz, lots of extras in Oz you wouldn't consider in UK. If you have kids the extras we pay out for kids in Oz are for prescriptions, doctor's appts, medical insurance, school books/stationery, stamp duty on new and used cars to name but a few. Quote Link to comment Share on other sites More sharing options...
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