How to arrive at 60 in the best financial position

[Pit Pony]

Mr-B said:

The simple answer to the issue is MX5, coke and hookers.

HTH

I'm okay with the MX5, but soft drinks and rugby? Nah.

[paddy1970]

Option 1: This option results in a net cost of £172,000, assuming rental income is invested. It is the simplest approach but involves paying high rent in Australia.

Option 2: This option is the most expensive (£512,853), primarily due to the high cost of purchasing a house in Australia and the associated mortgage.

Option 3: This option balances keeping your UK house with purchasing a home in Australia. The net cost of £435,000 is lower than Option 2 but higher than Option 1. It assumes significant investment returns from the rental income.

Option 4: This option appears to be the most cost-effective (£97,000). It leverages the rental income from the UK house and investment returns while managing the remortgage payments. This option assumes that rental income and investments grow significantly over time.

Based on the provided data and assumptions, Option 4 seems to make the most financial sense. It has the lowest net cost, maximising your savings and investment returns while retaining ownership of your UK house. However, it is essential to consider the following factors:
1) Investment Risks: The actual returns on savings and stocks can vary, and there is a risk associated with relying on these investments for your financial planning.
2) Housing Market Changes: Both the UK and Australian housing markets may change, affecting property values and rental incomes.

[eyebeebe]

Why aren’t you paying the £200 or so annual voluntary NI contributions so that you can get a full UK state pension?

[GT03ROB]

turbotoaster said:

Its got different names but it seems over here to be called Instrumentation Engineer

In that case I'll keep this simple.....

• if married don;t divorce
• if not married don;t
• get yourself a job in Saudi, you'll bank enough annually to make all these calcs irrelevant & have you retired way before 60.

[Zolvaro]

It sounds like you are planning on working in Australia for the next 20 years, on that basis I would be discounting the retire in the UK option completely. All you friendships\relationships that matter by that time will be in Australia. If you like it, commit to your life there and stop worrying about anything else.

I second the earlier poster as well about paying the class 2 nics to get yourself a full UK state pension on top of your Oz super.

[turbotoaster]

paddy1970 said:

Based on the provided data and assumptions, Option 4 seems to make the most financial sense. It has the lowest net cost, maximising your savings and investment returns while retaining ownership of your UK house. However, it is essential to consider the following factors:
.

This was initially my thoughts also, maybe splitting my savings between traditional bank savings interest and a global tracker, so that if there was a big crash in the market im not 100% relying on it

eyebeebe said:

Why aren’t you paying the £200 or so annual voluntary NI contributions so that you can get a full UK state pension?

I will still do this, but we are only just into 2024-2025 financial year, so havent got around to that yet.

GT03ROB said:

In that case I'll keep this simple.....

• if married don;t divorce
• if not married don;t
• get yourself a job in Saudi, you'll bank enough annually to make all these calcs irrelevant & have you retired way before 60.

Married with 2 kids, been together 15 years.

I only really moved because it was an internal transfer with the company so I didnt have to learn a thing and doing the same job, that way I can concentrate on everything else

Zolvaro said:

It sounds like you are planning on working in Australia for the next 20 years, on that basis I would be discounting the retire in the UK option completely. All you friendships\relationships that matter by that time will be in Australia. If you like it, commit to your life there and stop worrying about anything else.

I second the earlier poster as well about paying the class 2 nics to get yourself a full UK state pension on top of your Oz super.

Initially I was just coming over to earn enough to pay off my UK mortgage and come back as my employer has said my job is safe in the UK and I can transfer back at any time. Since I dont really have any savings it would then give me the chance to save.

But now im here it feels like it would be very hard financially to go back to the wage I was on, im not really fussed on Australia, its a decent place and i do like some of the scenery when im driving out into the bush but it was never a dream or something I craved, I dont love it, same way I dont love the UK.

Making friends is hard over here, especially at this age with family

The 20 year idea was a chance to retire early compared to likely having to work to mid 60s in the UK and also its nice not being cold, its nearly winter here and i was working outside today at 22c

[Zolvaro]

turbotoaster said:

Making friends is hard over here, especially at this age with family

The 20 year idea was a chance to retire early compared to likely having to work to mid 60s in the UK and also its nice not being cold, its nearly winter here and i was working outside today at 22c

I think the problem you will have is that your kids wont want to go back to the UK in 20 years as Australia will be their home. Is your wife going to want to go back if they have made their lives out there?

Edited by Zolvaro on Thursday 16th May 11:41

[Nick Forest]

AllyM said:

turbotoaster said:

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

What do you do?

It doesn’t involve building a model in XL that’s for fking sure!

[turbotoaster]

Zolvaro said:

Do you have a partner and kids with you then?

Yes, when im 60 the wife will be 62, daughters will be 31 and 29.

One thing I was looking at tonight was houses near the beach but far north in Queensland,(near Cains) so good distances from big citys.

It does seem you can get a house up there for what my UK house is worth.

So that does give me the potential option of when im 60, sell my house in uk, buy a house in north Australia for roughly the same value, the hope would be that both sides of the water go up at similar rates.

It would give me the warm weather, the quieter life, have a small swimming pool etc

That way the children could come and visit us as it will be short flight rather than a long haul(assuming they stay in NSW of course)

[Zolvaro]

turbotoaster said:

Zolvaro said:

Do you have a partner and kids with you then?

Yes, when im 60 the wife will be 62, daughters will be 31 and 29.

One thing I was looking at tonight was houses near the beach but far north in Queensland,(near Cains) so good distances from big citys.

It does seem you can get a house up there for what my UK house is worth.

So that does give me the potential option of when im 60, sell my house in uk, buy a house in north Australia for roughly the same value, the hope would be that both sides of the water go up at similar rates.

It would give me the warm weather, the quieter life, have a small swimming pool etc

That way the children could come and visit us as it will be short flight rather than a long haul(assuming they stay in NSW of course)

The tax regime for buying and renting out houses is much more favourable in Australia than in the UK, you would also have to pay capital gains on the uplift in your UK house when you come to sell as you would not have lived in it for 20 years. In other words if this is your plan, do it now, not in 20 years.