How to arrive at 60 in the best financial position
Discussion
Ive made a couple of posts on here about different things and you all have been really great, offered good advice which has given me plenty of info.
For reference im already in Australia and have been since start of the year
The next is housing.
Im 40 at the moment, but the decision will be needed to be made 42yrs 7 months (November 2026) this is when my mortgage is due to come off its 1.25% rate.
For this exercise I have to make some assumptions.....which straight away in know is wrong but without hindsight im not sure how to approach.
Assumptions
House value never changes
Rent never goes up in AUS or UK
I can hear you all screaming at the laptop screen already!
These are my 4 options at 60years old
End of 2026 I will have £75,000 in savings
2 are go back to the UK, 2 are stay in AUS.
All are assuming I will be mortgage free at 60 as thats when I retire.
OPTION 1 RETURN TO UK
Pay mortgage off in 2026
Outstanding balance £75,000
Total cost to myself is £164,000
UK House value £200,000
UK receive £800 per month in rental income for 17.5years
£168,000 rental income
AUS pay £1600 a month in rent for 17.5years
£336,000 rental cost
If i pay that UK rental income into a savings account at 5% in UK, that will earn my £262,000
If i pay that UK rental income into a stocks and shares account at 8% in UK, that will earn my £384,000
Decided to split the difference to reduce risk.
Total cost of life
UK House Cost £164,000
AUS Rental cost £336,000
UK Rental income in savings/shares -£328,000
= £172000
retire at 60years old and go back to UK.
OPTION 2 STAY IN AUS
Pay house off
Total cost £164,000
UK House Value £200,000
Sell house
Buy AUS house at £420,000
£227,000 mortgage
total payable back at 5.5% is £348853
add to cost of uk house £164,000
total cost
£512,853
retire at 60years old in Australia
OPTION 3 STAY IN AUS
Keep house in UK
remortgage to 17years
Pay £550 a month mortgage at 5%
Receive £800 a month in rent
Net £250
If i pay that into a savings account at 5% in UK, that will earn my £80800
If i pay that into a stocks and shares account at 8% in UK, that will earn my £107,000
Buy a house at £420,000
£364,000 mortgage
total payable back at 5.5% is £562221
Sell UK house at retirement age
Total cost
Cost to myself of Uk house £88000 in 2026
UK House £88000
AUS House deposit £75000
AUS Mortgage cost £562221
Sell UK house-£200000
UK Rental income in savings/shares -£90000
£435000 cost
OPTION 4 RETURN TO UK
Keep house in Uk
remortgage to 17years
Pay £550 a month
Receive £800 a month in rent
Net £250
Keep the £75,000 that would have paid mortgage off
If i pay that £75,000 plus rent into a savings account at 5% in UK, that will earn my £255200
If i pay that £75,000 plus rent into a stocks and shares account at 8% in UK, that will earn my £399,000
Total cost
£88000
£336000
-327000
Total cost £97000
I know rents and house prices will go up on both sides of the world but I needed to start somewhere and try and not make it to complicated initially.
But i would like to hear peoples thoughts looking at this data on what seems to make the most financial sense, the last one comes out with the best number but adding the variables may massively change this, im happy to live in either country in retirement.
For reference im already in Australia and have been since start of the year
The next is housing.
Im 40 at the moment, but the decision will be needed to be made 42yrs 7 months (November 2026) this is when my mortgage is due to come off its 1.25% rate.
For this exercise I have to make some assumptions.....which straight away in know is wrong but without hindsight im not sure how to approach.
Assumptions
House value never changes
Rent never goes up in AUS or UK
I can hear you all screaming at the laptop screen already!
These are my 4 options at 60years old
End of 2026 I will have £75,000 in savings
2 are go back to the UK, 2 are stay in AUS.
All are assuming I will be mortgage free at 60 as thats when I retire.
OPTION 1 RETURN TO UK
Pay mortgage off in 2026
Outstanding balance £75,000
Total cost to myself is £164,000
UK House value £200,000
UK receive £800 per month in rental income for 17.5years
£168,000 rental income
AUS pay £1600 a month in rent for 17.5years
£336,000 rental cost
If i pay that UK rental income into a savings account at 5% in UK, that will earn my £262,000
If i pay that UK rental income into a stocks and shares account at 8% in UK, that will earn my £384,000
Decided to split the difference to reduce risk.
Total cost of life
UK House Cost £164,000
AUS Rental cost £336,000
UK Rental income in savings/shares -£328,000
= £172000
retire at 60years old and go back to UK.
OPTION 2 STAY IN AUS
Pay house off
Total cost £164,000
UK House Value £200,000
Sell house
Buy AUS house at £420,000
£227,000 mortgage
total payable back at 5.5% is £348853
add to cost of uk house £164,000
total cost
£512,853
retire at 60years old in Australia
OPTION 3 STAY IN AUS
Keep house in UK
remortgage to 17years
Pay £550 a month mortgage at 5%
Receive £800 a month in rent
Net £250
If i pay that into a savings account at 5% in UK, that will earn my £80800
If i pay that into a stocks and shares account at 8% in UK, that will earn my £107,000
Buy a house at £420,000
£364,000 mortgage
total payable back at 5.5% is £562221
Sell UK house at retirement age
Total cost
Cost to myself of Uk house £88000 in 2026
UK House £88000
AUS House deposit £75000
AUS Mortgage cost £562221
Sell UK house-£200000
UK Rental income in savings/shares -£90000
£435000 cost
OPTION 4 RETURN TO UK
Keep house in Uk
remortgage to 17years
Pay £550 a month
Receive £800 a month in rent
Net £250
Keep the £75,000 that would have paid mortgage off
If i pay that £75,000 plus rent into a savings account at 5% in UK, that will earn my £255200
If i pay that £75,000 plus rent into a stocks and shares account at 8% in UK, that will earn my £399,000
Total cost
£88000
£336000
-327000
Total cost £97000
I know rents and house prices will go up on both sides of the world but I needed to start somewhere and try and not make it to complicated initially.
But i would like to hear peoples thoughts looking at this data on what seems to make the most financial sense, the last one comes out with the best number but adding the variables may massively change this, im happy to live in either country in retirement.
Edited by turbotoaster on Wednesday 15th May 13:00
Those are very simplistic calculations the rent is missing a lot of costs and tax out of the equation you can’t just say £800 rent £500 mortgage £300 in the bank.
Also it’s obsessed with housing no mention at all about pensions which is maxed out can easily eradicate all these housing calculations with the lump sum.
TBH I skim read most of it as it hurt my head lol.
Also it’s obsessed with housing no mention at all about pensions which is maxed out can easily eradicate all these housing calculations with the lump sum.
TBH I skim read most of it as it hurt my head lol.
turbotoaster said:
Ive made a couple of posts on here about different things and you all have been really great, offered good advice which has given me plenty of info.
For reference im already in Australia and have been since start of the year
The next is housing.
Im 40 at the moment, but the decision will be needed to be made 42yrs 7 months (November 2026) this is when my mortgage is due to come off its 1.25% rate.
For this exercise I have to make some assumptions.....which straight away in know is wrong but without hindsight im not sure how to approach.
Assumptions
House value never changes
Rent never goes up in AUS or UK
I can hear you all screaming at the laptop screen already!
These are my 4 options at 60years old
End of 2026 I will have £75,000 in savings
2 are go back to the UK, 2 are stay in AUS.
All are assuming I will be mortgage free at 60 as thats when I retire.
OPTION 1 RETURN TO UK
Pay mortgage off in 2026
Outstanding balance £75,000
Total cost to myself is £164,000
UK House value £200,000
UK receive £800 per month in rental income for 17.5years
£168,000 rental income
AUS pay £1600 a month in rent for 17.5years
£336,000 rental cost
If i pay that UK rental income into a savings account at 5% in UK, that will earn my £262,000
If i pay that UK rental income into a stocks and shares account at 8% in UK, that will earn my £384,000
Decided to split the difference to reduce risk.
Total cost of life
UK House Cost £164,000
AUS Rental cost £336,000
UK Rental income in savings/shares -£328,000
= £172000
retire at 60years old and go back to UK.
OPTION 2 STAY IN AUS
Pay house off
Total cost £164,000
UK House Value £200,000
Sell house
Buy AUS house at £420,000
£227,000 mortgage
total payable back at 5.5% is £348853
add to cost of uk house £164,000
total cost
£512,853
retire at 60years old in Australia
OPTION 3 STAY IN AUS
Keep house in UK
remortgage to 17years
Pay £550 a month mortgage at 5%
Receive £800 a month in rent
Net £250
If i pay that into a savings account at 5% in UK, that will earn my £80800
If i pay that into a stocks and shares account at 8% in UK, that will earn my £107,000
Buy a house at £420,000
£364,000 mortgage
total payable back at 5.5% is £562221
Sell UK house at retirement age
Total cost
Cost to myself of Uk house £88000 in 2026
UK House £88000
AUS House deposit £75000
AUS Mortgage cost £562221
Sell UK house-£200000
UK Rental income in savings/shares -£90000
£435000 cost
OPTION 4 RETURN TO UK
Keep house in Uk
remortgage to 17years
Pay £550 a month
Receive £800 a month in rent
Net £250
Keep the £75,000 that would have paid mortgage off
If i pay that £75,000 plus rent into a savings account at 5% in UK, that will earn my £255200
If i pay that £75,000 plus rent into a stocks and shares account at 8% in UK, that will earn my £399,000
Total cost
£88000
£336000
-327000
Total cost £97000
I know rents and house prices will go up on both sides of the world but I needed to start somewhere and try and not make it to complicated initially.
But i would like to hear peoples thoughts looking at this data on what seems to make the most financial sense, the last one comes out with the best number but adding the variables may massively change this, im happy to live in either country in retirement.
That must be the understatement of the year so far.For reference im already in Australia and have been since start of the year
The next is housing.
Im 40 at the moment, but the decision will be needed to be made 42yrs 7 months (November 2026) this is when my mortgage is due to come off its 1.25% rate.
For this exercise I have to make some assumptions.....which straight away in know is wrong but without hindsight im not sure how to approach.
Assumptions
House value never changes
Rent never goes up in AUS or UK
I can hear you all screaming at the laptop screen already!
These are my 4 options at 60years old
End of 2026 I will have £75,000 in savings
2 are go back to the UK, 2 are stay in AUS.
All are assuming I will be mortgage free at 60 as thats when I retire.
OPTION 1 RETURN TO UK
Pay mortgage off in 2026
Outstanding balance £75,000
Total cost to myself is £164,000
UK House value £200,000
UK receive £800 per month in rental income for 17.5years
£168,000 rental income
AUS pay £1600 a month in rent for 17.5years
£336,000 rental cost
If i pay that UK rental income into a savings account at 5% in UK, that will earn my £262,000
If i pay that UK rental income into a stocks and shares account at 8% in UK, that will earn my £384,000
Decided to split the difference to reduce risk.
Total cost of life
UK House Cost £164,000
AUS Rental cost £336,000
UK Rental income in savings/shares -£328,000
= £172000
retire at 60years old and go back to UK.
OPTION 2 STAY IN AUS
Pay house off
Total cost £164,000
UK House Value £200,000
Sell house
Buy AUS house at £420,000
£227,000 mortgage
total payable back at 5.5% is £348853
add to cost of uk house £164,000
total cost
£512,853
retire at 60years old in Australia
OPTION 3 STAY IN AUS
Keep house in UK
remortgage to 17years
Pay £550 a month mortgage at 5%
Receive £800 a month in rent
Net £250
If i pay that into a savings account at 5% in UK, that will earn my £80800
If i pay that into a stocks and shares account at 8% in UK, that will earn my £107,000
Buy a house at £420,000
£364,000 mortgage
total payable back at 5.5% is £562221
Sell UK house at retirement age
Total cost
Cost to myself of Uk house £88000 in 2026
UK House £88000
AUS House deposit £75000
AUS Mortgage cost £562221
Sell UK house-£200000
UK Rental income in savings/shares -£90000
£435000 cost
OPTION 4 RETURN TO UK
Keep house in Uk
remortgage to 17years
Pay £550 a month
Receive £800 a month in rent
Net £250
Keep the £75,000 that would have paid mortgage off
If i pay that £75,000 plus rent into a savings account at 5% in UK, that will earn my £255200
If i pay that £75,000 plus rent into a stocks and shares account at 8% in UK, that will earn my £399,000
Total cost
£88000
£336000
-327000
Total cost £97000
I know rents and house prices will go up on both sides of the world but I needed to start somewhere and try and not make it to complicated initially.
But i would like to hear peoples thoughts looking at this data on what seems to make the most financial sense, the last one comes out with the best number but adding the variables may massively change this, im happy to live in either country in retirement.
Edited by turbotoaster on Wednesday 15th May 13:00
My goodness, if you approach every decision in life like that I doubt you will make 60
How many years National Insurance contributions have you got towards your state pension. Also bear in mind that if you are not based in the UK then it doesn't go up when the pension goes up, you will always be getting the same amount.
So to sum up, the rent has gone up $75 a week just because the market is so hot and people are desperate.
I think the idea that rents will stay static in Melbourne is crazy, I wouldn't be surprised if they double by the time you come to retire.
turbotoaster said:
Rent never goes up in AUS or UK
My girlfriend is Australian and has a 2 bedroom apartment in Melbourne she rents out and the current tenants moved out "because the rent is too much". The letting agent told her to increase the rent by $50 a week and she had one person offer another $25 a week on top of that because they had missed out on so many other properties.So to sum up, the rent has gone up $75 a week just because the market is so hot and people are desperate.
I think the idea that rents will stay static in Melbourne is crazy, I wouldn't be surprised if they double by the time you come to retire.
Edited by ThingsBehindTheSun on Wednesday 15th May 19:25
BoRED S2upid said:
Those are very simplistic calculations the rent is missing a lot of costs and tax out of the equation you can’t just say £800 rent £500 mortgage £300 in the bank.
Also it’s obsessed with housing no mention at all about pensions which is maxed out can easily eradicate all these housing calculations with the lump sum.
TBH I skim read most of it as it hurt my head lol.
£15k a year goes into pension over here, you pay 15% on the way in can take 100% of it on the way out tax free, even if its a full lump sum.Also it’s obsessed with housing no mention at all about pensions which is maxed out can easily eradicate all these housing calculations with the lump sum.
TBH I skim read most of it as it hurt my head lol.
Based on a 7% compound interest im looking at £600k to bring back with me if I come home.
Dont really have anything in UK pensions, 6k in one and 11k in another.
I will get 78% of state pension also assuming its still available in 20 years due to my 24 years of paying in.
ThingsBehindTheSun said:
My girlfriend is Australian and has a 2 bedroom apartment in Melbourne she rents out and the current tenants moved out "because the rent is too much". The letting agent told her to increase the rent by $50 a week and she had one person offer another $25 a week on top of that because they had missed out on so many other properties.
So to sum up, the rent has gone up $75 a week just because the market is so hot and people are desperate.
I think the idea that rents will stay static in Melbourne is crazy, I wouldn't be surprised if they double by the time you come to retire.
renting is pretty nutty over here, we are in a 3 bed house with a pool and pay $675 a week, coming up to our first 6 months and just renewed on a 12month at the same price, but I know its unlikely we will get the same price the following year.So to sum up, the rent has gone up $75 a week just because the market is so hot and people are desperate.
I think the idea that rents will stay static in Melbourne is crazy, I wouldn't be surprised if they double by the time you come to retire.
Edited by ThingsBehindTheSun on Wednesday 15th May 19:25
I didnt put price increases into things as then im just making assumptions that I cant back up and could end up make the decision more or less correct in doing so.
The thought is do I base rent increases on wage inflation, 2% or CPI, it seems over here that BTL is on another level compared to the UK
Cross-border issues can throw up surprises.
If you were able to withdraw “£600k” from your pension ‘tax free’ on leaving Oz. what would you do with it?
It would take a long time to reinvest it within a tax-friendly wrapper such as an ISA so you could end up with tax to pay on any future investment income and/or gains once you were back over here…
If you were able to withdraw “£600k” from your pension ‘tax free’ on leaving Oz. what would you do with it?
It would take a long time to reinvest it within a tax-friendly wrapper such as an ISA so you could end up with tax to pay on any future investment income and/or gains once you were back over here…
Jordie Barretts sock said:
Mate, I can't understand any of that.
But, you're 40. Live a little, eh?
Go have a beer or two, buy a big Ute and enjoy life. Stop overthinking things.
What will be, will be.
I get a Ute with work, just waiting for it currently, will be a Ford RangerBut, you're 40. Live a little, eh?
Go have a beer or two, buy a big Ute and enjoy life. Stop overthinking things.
What will be, will be.
ChocolateFrog said:
You really need to decide which side of the world you want to live on first I'd have thought.
I would love to be on the money im on over here and the perks but living in my UK house(Staffordshire)But that is just not a possibility.
Doing the exact same job for the same company, when i did an internal transfer if i include all the perks im on 2.5times the money
Jordie Barretts sock said:
Mate, I can't understand any of that.
But, you're 40. Live a little, eh?
Go have a beer or two, buy a big Ute and enjoy life. Stop overthinking things.
What will be, will be.
No relationships, or relatives mentioned. But, you're 40. Live a little, eh?
Go have a beer or two, buy a big Ute and enjoy life. Stop overthinking things.
What will be, will be.
Option 5.
Get married, have 5 kids or if already married : divorce
Option 6
Return to the UK, spend your days wiping your parents bottoms, because UK care system.
Gassing Station | Finance | Top of Page | What's New | My Stuff