Making the move - real world opinion

Making the move - real world opinion

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Fizpop

Original Poster:

332 posts

169 months

Tuesday 26th August 2014
quotequote all
Evening all. I'm hoping that you guys can give me your thoughts on an opportunity that's presented itself.

I'm a married guy of 36 with a toddler, working in Newcastle, UK. My wife and I were idlely considering a move to Aus, Perth in particular where my wife has family, all expats.

I work in house building as a PM, and earn around £45k, my wife looks after the nipper full time - which puts us in a decent 3 bed detached and affords us a decent living on which we get by. Holidays etc are something that happens every couple of years and we do need to be careful.

I've been offered a job, in a similar role at an SME in Perth which has raised our eyebrows a bit and made us consider it a good deal more seriously.

The job is offering AUS$120k, car etc, which on the face of it is a huge amount of money, but I hear that it's much more expensive to live in Aus, and I wonder just how much of a change in lifestyle that sort of salary would bring? I would see me being the sole wage earner for the foreseeable, so that would be our entire household income.

I'd be grateful if the downunder PH collective could give me their thoughts on what that sort of salary this would be classed as down there? Would it warrant the move, all other factors family/ change /lifestyle etc aside?

I'm looking at it seriously as the only possible way I'll ever get into a v8, but moving there would pretty much wipe us out financially so a good deal of due diligence is needed.

Thanks in advance...

Bibbs

3,733 posts

210 months

Tuesday 26th August 2014
quotequote all
Perth is expensive, but $120k should be enough to get by with a good life.

Firstly, does the $120k include Super (pension payments - it's compulsory here)?
If it's Super on top, $120k would give you about $7155 a month.

So a nice rental in the 'burbs will be $500 a week, A $40k car loan will be about $250 a week.
Bills will be, ish (using my outgoings, per month, rounded, your mileage may vary) :-

Internet $100
Foxtel $100
Mobile $50 (each)
Eletric $150
Water $100
Gas $50

Car Rego is about $600 (annual), Insurance is about the same for an HSV.
House Rates and Water Rates (you don't pay them if renting) are about $2000 (annual).

A tank of petrol is over $100 (70 litres of Super), a slab of beer is $50. I prob spend $100 a week on food (mainly steak). A takeaway for two is $50, a cheap meal out is $100. A pint of beer will be at least $10 in the city.

Dunno if I forgot anything.

HenryJM

6,315 posts

129 months

Tuesday 26th August 2014
quotequote all
It depends on your motivation for moving, if you want to be in Perth then that salary will let you do it. But if you want to take that salary because it sounds like it's a significant increase then I'm afraid it isn't.

Rent would be your biggest cost and that depends on what you want, have a look on www.domain.com.au and judge for yourself. I'd say you need to budget more than $500 a week, that's fairly low end but doable depending on what you want and where.

You should look at medical costs/insurance, there is a government scheme called Medicare but it's not the NHS and if you don't pay for insurance you'll pay more for Medicare.

Meanwhile coming from the UK to Australia many things are a 'how much?' experience, the little things can be a lot more. The slab of beer mentioned for $50 above, that's 24 'stubbies' for about £30 whilst in the UK you'll pay £15 ish for the same (and it will taste good!).

Perth is also somewhere you have to like because it's a hell of a long way to anywhere else. It's a great city but the next nearest place of any size is only slightly closer to Perth than New York is to you now.

But if you want to be in Perth that salary will let you do it.

Pommygranite

14,244 posts

216 months

Tuesday 26th August 2014
quotequote all
Salary and normal stuff aside - what do you and your wife/family like doing lifestyle wise and what do wish your average week was like?

Also - do you like hot weather? I mean like can you cope in ultra hot weather?


Jader1973

3,981 posts

200 months

Tuesday 26th August 2014
quotequote all
Assuming $120k is the salary and super is on top, it will get you $3260 ish a fortnight (that's what it gets me).

Our fortnightly outgoings, for a family of 3 are:
$1100 = Mortgage just over $200k but being paid off at more than the going rate.
$1000 = Food/Eating out and general day to day stuff (I have no idea where it goes, but it goes)
$350 = Phone/Gas/Elec/Rates
$180 = Insurance (Home, 1 car, Health)
$380 = Fuel and Tolls (I live 60km from work, so spend $100 a week on fuel and $65 on tolls, fortunately my wife works a 10 minute drive from the house)

So a grand total of $250 a fortnight left over....unfortunately I lease 2 cars from work that cost more than that combined.......fortunately my wife works as well, so all up we are actually saving, a bit, and paying extra off the mortgage too. We'd save more if the wife stopped using her fking credit card mad

Some things to consider:
1) if your wife is at home all day she will end up doing the one thing that bored women do - spend money. It'll either be on stuff for your kid, or coffee etc. It'll rack up before you know it. Put her on a budget.
2) Perth is a long, long way from everywhere - even the east coast of Aus is a 4 hour flight away.
3) going on holiday in Aus is expensive - a recent trip to Queensland for 5 nights cost us close to 2 grand on flights, car hire, and hotel (2 nights, other 3 were at in-laws)
4) You'll need to be able to save if you want to go back to the UK on holidays.
5) check the situation with the work car - does it come out of your salary, what is the situation with Fringe Benefits Tax? i.e. what does it cost you?
6) what sort of Visa will you be on, and what does it let you access? e.g. can you get family benefit, Medicare etc?


So, 120k a year is not a lot, but you should be able to make it work if you rent sensibly and budget carefully. However, ask yourself if that is what you really want to do, having moved to the other side of the world to this fantastic country.






Pommygranite

14,244 posts

216 months

Tuesday 26th August 2014
quotequote all
Agreed on the above 100%.

$120k will give you a decent standard of living - lets be clear it isnt poverty money and you can pick a nice house in a reasonable area to rent (buyings a different matter - see www.realestate.com.au)

So put the money aside as it wont be a big issue given what you will be earning.

What will be an issue is if the lifestyle, weather, distance, happy-wife-happy-life aspects dont suit.

Personally I frickin love it here as its just an amazingly relaxed place to live, fabulous weather 300 days of the year (and the other 60 are bloody hot or a bit drizzly), a great sense of positivity and wellbeing and a sense of 'luckiness' to be living somewhere so satisfying.

I will never live in the UK again if I dont have to but I do miss it terribly.

However... however some people turn up and hate it - hate the tv, hate the shops, hate the isolation, hate living in a suburb miles from anything, hate the lack of 'soul', hate the sparseness and hate the disconnection.

If you want ITV, Asda, a great local pub, an inside life and a good pork pie, dont come.

However if you're wanting to break your current 'slump' try something new and are willing to embrace the chance of a different life get on a plane.

Fizpop

Original Poster:

332 posts

169 months

Tuesday 26th August 2014
quotequote all
Thanks for the responses so far folks. To answer a few of the comments. The $120 is exclusive of superannuation. I've no knowledge of the taxible benefits etc so that's a great point that I'll need to look into.

The reality check on the salary is actually comforting as in my mind it was skewing the decision as I would never achieve a comparable figure here. What I'm gathering from the replies is that its perhaps akin to a £50/60k salary over here, is that a fair comparison?

If we came we'd be here for the long haul. At the moment I'm assuming I'd be covering the relocation fees and I'm looking into visas. The company who've offered me the job is very small, reasonably young and have not hired from abroad before. I'd be selling up entirely and would probably wash up in Aus with £10k to my name.

Lifestyle, we're pretty outdoorsy, not that into TV or the pub. We like the beach and the sea. The possibility of a 4x4 and a boat towed behind it is pretty exciting to me and the missus would love a small pool at home!

The cost comparisons that you're providing are really useful and thank you all for them. That's just the real world info I was looking for.

For those of you with kids, how is nursery/ schooling? Is the state system good or is private schooling common amongst expats?

HenryJM

6,315 posts

129 months

Tuesday 26th August 2014
quotequote all
If I were you I'd view $120k as being about the same as £45k, it may be that you would feel better off but it's going to be a bit marginal.

On visas what you are probably looking at is a 457, that's an employer sponsored visa where the company needs to apply first and then you apply. There are costs involved, $3520 to apply and another $1760 for your wife and $880 for the child. Thats after the $540 for the employer to make the nomination.

The employer needs to make the case to offer the post overseas and then you need to fit the application. This was all easy stuff but now is a little harder because of them cutting back on this class of visa but it should go through OK. It is a 4 year visa, the employer has to commit to pay your expenses to return you to the UK if it doesn't work out. After a couple of years you could apply for Permanent Residency and after four years for citizenship.

You might qualify for a skills visa, I don't have any experience of those except to say you need to have skills they want and have more freedom when you get there on who you work for.

The primary issue with people moving to Australia is with family and friends. Being so far away is the reason something like 40% of those who go come back again fairly quickly, Australia's great but being so far from their mum tends to be the biggest problem some have!

speedysoprano

224 posts

119 months

Tuesday 26th August 2014
quotequote all
I don't have a huge amount to add in terms of practical stuff - everyone else has pretty much covered that and I don't see much to quibble with.

If you're really into the outdoorsy, beachy lifestyle, you might well love it. If you don't mind ridiculously hot weather (and I mean ridiculously hot) in the summer and constant grey and rain in the winter, you might well love it. I guess nowhere's got perfect weather.

However - I lived in Perth for 3 years and absolutely hated the place. Couldn't wait to leave, in the end. I'm from the eastern side of Australia, and there was an ingrained issue with newcomers, especially those from "over east". I'm not sure if that extends to people from overseas, but I can tell you that I felt less than welcome initially, despite working hard and being nice to people. I had to deal with a lot of nastiness, and in fact missed out on several jobs because I wasn't from Perth (the employers actually gave me this as a reason, and saw nothing wrong with it!)

This may have changed, I left there in 2007, but it's the experience I had and so did quite a few of my friends who moved to Perth at a similar time.


Don't get me wrong, I made some really terrific friends in Perth - it's not the individuals, as usual, that are the problem.

Also, due to Perth being so isolated, the customer service tended to be pretty shocking. Especially when ordering furniture or such like - the attitude was, "well, where else are you going to get it?" I think this may be different now, as so much stuff is ordered over the internet anyway, but it was a major issue then. People being expected to wait 6-8 weeks for delivery of the most basic furniture items, for example.

It's difficult to have a decent night out without spending a fair amount of money, unless you're living right in a central area, throw yourself at the mercy of the trains (which aren't very good), or drive. Which I ended up doing more often than not, which started to get pretty annoying as I just wanted to go out for a drink!!

Then again, none of these things may apply, you might think Perth is absolutely brilliant. Whatever you decide to do, I wish you all the best!

Pommygranite

14,244 posts

216 months

Tuesday 26th August 2014
quotequote all
Fizpop said:
I'd be selling up entirely and would probably wash up in Aus with £10k to my name.
This bit stands out like dogs balls. If a single guy rocked up with 10k it would be marginally doable.

Wife and child in tow? No way.

10k english, or roughly $18k isnt going to go far at all. Put it this way you are looking at $5k just for the most basic of acceptable cars - think 10 years old, 140k kms +. See www.carsales.com.au

That leaves $13k to live, furnish a house, get around until your wage starts paying etc. You'll be renting in an ok suburb but with nothing around and so you will likely need another car or you are going to have one crazy bored wife who will likely want to kill you and leave you to go home but cant as you dont have the $3k return flights are going to cost....

Seriously - plenty of people have come to Oz and its not worked out and cost them their marriage... me included. However WA has some smoking hot women so at least if you're single you'll have an awesome time laugh



Fizpop

Original Poster:

332 posts

169 months

Wednesday 27th August 2014
quotequote all
There's some real food for thought here guys and some real insightful advice. I think further investigation is needed particularly around the cost of/ getting some employer support with moving costs and seeing if we can get some more cash together.

I'm fairly confident we could stay with relatives until we get on our feet, but Neville's point about the limits of certain visas are a concern.

You guys have really highlighted some potential pitfalls and given me some ideas on what to look into and that along with the offer of further assistance is greatly appreciated.

Many thanks!

Fizpop

Original Poster:

332 posts

169 months

Wednesday 27th August 2014
quotequote all
...PS: Pommygranites link to that car site isn't helping, I can see what tonights research will be 'v8, up to $5k, cheapest first' biggrin

PomBstard

6,771 posts

242 months

Wednesday 27th August 2014
quotequote all
WeirdNeville said:
just as things in WA seem to be cooling???? You'd be very brave, or need a good back up plan is my initial feeling.
This bit's important also. Whilst Australia has still managed to avoid the worst of any economic disaster, the indications are that NSW is going to lead the next phase of growth, with various Govt infrastructure projects on the go. Haven't seen the signs that the miners are ready to make a full-scale return to WA yet.

If I was looking to come out, I'd look for where the growth opportunities are, esp if joining a smaller, newish company.

Bibbs

3,733 posts

210 months

Wednesday 27th August 2014
quotequote all
Coming out with a small amount of money *can* be done.

I came here (with the wife) with $8000 (the money from selling our UK cars), and our last two pay cheques.

But we landed on a Thursday, she started work on the Monday.

I started work after 6 weeks.

We had a friend that let us stay with them rent free for 8 weeks (he offered 6 months).

Then we had a lot of furniture arrive at about 12 weeks, and then my wife had a large amount of backup money from her house sale, just in case.

Pommygranite

14,244 posts

216 months

Wednesday 27th August 2014
quotequote all
Fizpop said:
...PS: Pommygranites link to that car site isn't helping, I can see what tonights research will be 'v8, up to $5k, cheapest first' biggrin
haha prepared to be amazed at what you can get away without MOT's in place (WA doesnt have them).

Here a bunky (read crappy) old V8 is the equivalent of the chavved up clapped old Corsa or gaffer-tapped benefits recipient Mondeo - its not got a great image. A lot make a lot of noise whilst using a truck load of fuel for not much go coupled with a large fuel expense.

A new V8 can be rather nice but fuel costs once again preclude many and there is a big rise in small sub-2.0 litre and diesel hatches.

PomBstard said:
WeirdNeville said:
just as things in WA seem to be cooling???? You'd be very brave, or need a good back up plan is my initial feeling.
This bit's important also. Whilst Australia has still managed to avoid the worst of any economic disaster, the indications are that NSW is going to lead the next phase of growth, with various Govt infrastructure projects on the go. Haven't seen the signs that the miners are ready to make a full-scale return to WA yet.

If I was looking to come out, I'd look for where the growth opportunities are, esp if joining a smaller, newish company.
I was at an Investment Briefing with our Head of Portfolios yesterday (I work for one of the big banks) and the message was clear:

Mining investment on the way down - the boom is over (we all know this).

Mining accounts for 50% of exports from Oz, 2.5% of jobs but 5% of salaries (i.e great incomes)

Large GDP debt (here in WA) is going to drive up living costs to some degree.

Inflation will rise but it depends to what degree the Govt will tolerate it - usually means interest rate rises (anticipated early next year) which pushes up living costs and decrease property demand (which will affect you OP given you are working in the property game which with a small developer is a very risky proposition.

Non Mining industries will start to become the predominant driver of the economy (reinforcing PB's comment on the eastern states growth potential).

Australias economy is massively dependent on one (ONE!) sector of one countries industry (Chinese Steel) and is already tailing off.

WA will cool down even further but there is a truck load of cash reserve both personally and commercially here so its not a bust scenario.

Debt is not a bad thing and Australia has one of the lowest debt to GDP ratios in the world.

Long story short - the boom has gone, the market will cool, WA will suffer to some degree but its not all doom and gloom.


madazrx7

4,865 posts

217 months

Wednesday 27th August 2014
quotequote all
This is a good thread for me to read as I seriously consider moving back to England.

It has reminded me of and highlighted so many of the reasons I want to make the move.

I've just returned to Perth from England and I can't wait to get out of here.

I'll let you know when I'm leaving chaps, but this time I'm choosing the pub!

Hasbeen

2,073 posts

221 months

Wednesday 27th August 2014
quotequote all
I think you have one very real advantage, your wifes family.

I had a Dutchman work for me twice. He was a good bloke & employee.

His wife was the problem. She became terribly lonely with no family, & also had a language problem when it came to employment.

He had no choice but to take her home twice. The first time they realised how much better they had it here, [Sydney in the 70s], & asked for help to come back.

She only lasted 2 years, & became so depressed he had to take her home again.

Within a year she was writing to me asking for help again. It can be hell for some ladies, for whom family is almost everything.

You shouldn't have that problem. I think it would be worth a go. You don't have that much to lose, & a lot to gain. It's been a while, but I liked Perth, just I prefer Queensland.

There are so many choices of lifestyle to be had in Oz. It would take half a dozen lives to explore them all, but you should find one to suit you.

toon10

6,166 posts

157 months

Wednesday 27th August 2014
quotequote all
I can't offer you any facts or figures but my neice did exactly this and has a much better lifestyle. She moved from the north east with her partner to Perth (or just outside). She worked at a call centre and he was doing various manual labour jobs. They both work in Oz doing similar jobs to what they had. They rent a nice large house and have a nice car. They had a small flat in a not so nice part of Northumberland over here.

They didn't lose an income so it's not apples for apples but they've been there over 4 years now and wouldn't come back. They got married last year and have friends and family over there on his side. A good support netowrk is important when moving so far away. They do love the lifestyle so moved more for that than the money.

200bhp

5,663 posts

219 months

Wednesday 27th August 2014
quotequote all
Not much to add in the way of opinion as the others have said it all. There was something on TV the other day that said the average Perth salary was around $70k and the average FIFO (fly-in-fly-out) salary was $140k. I struggle to see how people survive on the average, and even how they would live comfortably on $140k. Maybe we just spend too much?

I was lucky because when we made the move I had a job to come to that pays every 2 weeks, we had our first 4 weeks accommodation paid for and had a work vehicle to use whilst we found our feet. I was also at the stage in my career when I was ready to take a big step up and the profession is better paid in Australia than the UK - Using the exchange rate alone for the sums, I more than tripled my salary by making the move.

Personally I know it's possible to start-up here with very little. We bought our UK house in 2004 and sold in 2008 meaning that we lost the best part of GBP14k. We had less than $10k to get us started here which we did, but only because I had the big bills taken care of and a job to come to.

We're on a 176 PR Visa and wouldnt do it any other way. I have seen people become stuck in a job they hate because they cant leave and find something else.

Our average costs per month for 2x Adults and 1x Dog. I consider this to be pretty accurate as I had to work it out for an application recently.


Rent $2,600.00
Electricity $133.00
Gas $139.00
Water $110.00 (our sprinkler system is like Niagra falls so this is high!)
Phone & Internet $65.49
Car Insurance $60.00
House insurance $59.00
Petrol $325.00
Food and groceries $925.00
Car Rego (tax) $42.67
Car servicing, tyres etc. $58.33
Car finance $562.90
Wife's hair $150.00
Vet bills $100.00
Dog food and flea treatment etc. $200.00
Clothing and shoes etc. $162.49
Medical bills $200.00
Mobile phone x1 $50.00

Total bills $5,942.88

Use paycalculator.com.au to see how much you'll take home after tax.

papahet

138 posts

129 months

Thursday 28th August 2014
quotequote all
speedysoprano said:
However - I lived in Perth for 3 years and absolutely hated the place.
Perth has changed a heck of a lot since 2007. The influx of foreigners and 'over east' people and money has really changed the place, when I think back to how it was when I moved here 10 years back it is a complete opposite to then.

Infrastructure is being plowed in everywhere you look. We get more entertainment than you could possibly see and to me there is a real feeling that the place and people are coming out of their shell.

200bhp said:
Not much to add in the way of opinion as the others have said it all. There was something on TV the other day that said the average Perth salary was around $70k and the average FIFO (fly-in-fly-out) salary was $140k. I struggle to see how people survive on the average, and even how they would live comfortably on $140k. Maybe we just spend too much?
Yep you probably spend to much. $70K as an average would mean that there are a great many people that are living quite happily on less than that. If someone struggles on $140K then I would suggest that they fritter it all away on crap or got over excited and tried to buy some sort of lifestyle.

I earn a touch over the average and the missus a bit more again and we still managed to put her through a degree, I run a race car, we go on holidays, we go out for meals, keep the fridge stocked with beer, donate to charity, over pay the mortgage, pay the bills on time, save some money for a rainy day etc etc etc.

In fact when the missus was studying her working hours were reduced substantially and we could still do those things. She is out of work at the moment and although we have tightened the belts we are not in danger of going under on my wage.

Personally I think the most important things when it comes to a successful move here are:

1. Do not move here to escape something or because you are sick of the gummint, chavs, your neighbours, weather. You will still find something here to bother you if you are trying to escape.

2. Don't come here chasing the next wage bracket, next shiny thing to buy. Owning st is not the key to a happy life other than the fleeting joy of peeling the clear protective stuff off the piano black / gloss bits. Happiness comes from the inside and being able to make the most of your lot.