orca Posted July 20, 2013 Report Share Posted July 20, 2013 Hello, My husband would love to move to Perth (probably Northern Suburbs e.g Clarkson, Quinns Rocks etc ) but I am slightly worried about cost of living. If we did go I'd want to buy a 3-4 bed house in a good area (i.e. for schools etc) with a pool, running one new-ish car and not be struggling every month. My husband would probably ear about $100K and if I worked it would be part time so about $25K per year. We have a two year old and another one on the way. Any ideas if this would be enough to cover bills and allow to save for flights home each year etc? Any thoughts welcome! many thanks Quote Link to comment Share on other sites More sharing options...
ali Posted July 20, 2013 Report Share Posted July 20, 2013 I would advise renting first rather than buying until you know exactly where you want to settle. Many people come over with one suburb in mind and settle somewhere else. There are a number of threads on the cost of living - if you use the search function (top right hand side above the blue index bar) you should find some idea what others have commented on. Oh .. and welcome to PP x Quote Link to comment Share on other sites More sharing options...
lozzachino Posted July 21, 2013 Report Share Posted July 21, 2013 http://www.taxcalc.com.au/ use this to work out what you will clear each week/month on those salaries. then work out what you would be spending on a weekly basis on rent, food, cars, fuel, bills, things for the kids and a bit of spending money, depending on your spending habits. Some people spend $300 a week on food, others can get by on less than $100, so that one is down to your spending habits. lets just say if my husband and i could earn 125k between us, we would be pretty happy. People survive on a lot less. Quote Link to comment Share on other sites More sharing options...
verystormy Posted July 21, 2013 Report Share Posted July 21, 2013 It depends on what size deposit you have. A newer house in these areas with pool and things is going to be about $500k minimum. I would budget $600k - i just had a look on realestate.com.au and for Quinns rocks there were only 8 properties with a pool for under $600k. A $100k salary plus a part time salary means you have a mortgage ability of $375k based on a 3x salary basis which is what is recomended people can afford. As said, i would rent first for at least a year and try to rent in a place you can afford to buy as if you do like the area, you dont then want to have to move somewhere else in order to buy. I would also do thorough research on your husbands salary and job availability to make sure your expectations are real. Quote Link to comment Share on other sites More sharing options...
Guest guest9824 Posted July 21, 2013 Report Share Posted July 21, 2013 Hi Orca and :ssign18:! I would mirror everything that VS has said. At least you don't have the hassle of finding a school yet but it pays to find a place with a school that fits your criteria sooner rather than later, but at least you have some breathing space. I like Quinns and Mindarie but we have fallen in love with the hills. Maybe when the kids are off our hands we will migrate nearer to the coast. Good luck with the imminent arrival of baby number 2 busy times ahead! pea Quote Link to comment Share on other sites More sharing options...
orca Posted July 21, 2013 Author Report Share Posted July 21, 2013 Hi Thank you so much for the replies! Yes we will def rent first for at least a year. But 375k to buy isnt loads I thought it would be like the uk when getting a mortgage and you have to get slightly more than 3x? Or are they v strict with this.in oz? We'll def look over other threads it was just incase it there is a general level of salary for a family that you need..but I know it depends on lots of factors! Thanks again and for the welcomes :-) Quote Link to comment Share on other sites More sharing options...
lozzachino Posted July 21, 2013 Report Share Posted July 21, 2013 Gosh how does anyone afford anything over $300k then? Surely the avg worker doesn't earn much over that? On a fairly average one income family salary of $70k they wouldnt be able to get a mortgage over $210k? So to buy a $600k house you are looking at having $390k as a deposit?? Doesnt bode well for those not earning megabucks does it... Quote Link to comment Share on other sites More sharing options...
Guest guest10912 Posted July 21, 2013 Report Share Posted July 21, 2013 Gosh how does anyone afford anything over $300k then? Surely the avg worker doesn't earn much over that? On a fairly average one income family salary of $70k they wouldnt be able to get a mortgage over $210k? So to buy a $600k house you are looking at having $390k as a deposit?? Doesnt bode well for those not earning megabucks does it... It is like anywhere, three time the average UK salary would be about GBP80k which doesn't buy a lot of house in most parts of the country. The answer is that people manage they save, there is often two salaries coming in, i.e. $70k is not the average family salary, it is the average individual salary. Also the average salary includes everyone, like school leavers, which is pulling the average down, but hopefully most start to earn more with experience. Quote Link to comment Share on other sites More sharing options...
StraighttothePoint Posted July 21, 2013 Report Share Posted July 21, 2013 HiThank you so much for the replies! Yes we will def rent first for at least a year. But 375k to buy isnt loads I thought it would be like the uk when getting a mortgage and you have to get slightly more than 3x? Or are they v strict with this.in oz? We'll def look over other threads it was just incase it there is a general level of salary for a family that you need..but I know it depends on lots of factors! Thanks again and for the welcomes :-) Not sure the issue is just about what you can borrow but just as much as what you could afford to pay back. You may need to take a step back before you take a step ahead. Buy a house with no pool for example. Rome was not built in a day. Also if you need to live in a suburb miles from anywhere you would need to use a fair bit of your incomes on tranportation. Vicious circle. Anyway send me your e-mail address via Private Message and I will send you a Excel budget sheet and list if must read websites. Quote Link to comment Share on other sites More sharing options...
Bibbs Posted July 21, 2013 Report Share Posted July 21, 2013 We got offered a lot more than x3 our salaries. They didn't take my wifes salary into account either, and we were told we could spend something like $800k. Which was far too much for us at the time. I like being able to over pay and have disposable income. Luckily my wife put in a hefty deposit too. $100k isn't a lot if you want to live like a king with "all the fruit" in the city, but if you are sensible it's above average (household average was reported at $92k a while back - not sure how accurate, or where the data was from). Rent for a while and save, don't have a new BMW every 3 years, and don't go back to the UK every year for a month. Quote Link to comment Share on other sites More sharing options...
verystormy Posted July 22, 2013 Report Share Posted July 22, 2013 Property in Perth is expensive simple as that. Banks here will lend you a lot more - but that doesnt mean it is wise to take it. Quote Link to comment Share on other sites More sharing options...
orca Posted July 22, 2013 Author Report Share Posted July 22, 2013 Hi Thanks for your replies. I understand what your saying and yes just as in the uk you need to borrow only what you can afford. But you've confirmed what I thought the banks do lend more. We dont want to live like kings lol..just not be stressing every month re bills for a nice family life not with a new bmw but somesort of reliable famly car! Maybe I should re-phrase my question...without going into specifics is there anyone out there or anyone who knows someone who has moved out to perth with a family and rents or has bought a 3/4bed house with pool in a good area maybe 10mins drive from coast and has a family income of 125k or less and is doing ok? My hubby and I are in process of doing our budgets at the moment but just as a general idea... Thanks :-) Quote Link to comment Share on other sites More sharing options...
Bibbs Posted July 22, 2013 Report Share Posted July 22, 2013 moved out to perth with a family and rents or has bought a 3/4bed house with pool in a good area maybe 10mins drive from coast and has a family income of 125k or less and is doing ok? Well .. I've done none of those (apart from the "doing Okay" bit), so I'll let others comment. Good luck. Quote Link to comment Share on other sites More sharing options...
Greg Posted July 22, 2013 Report Share Posted July 22, 2013 Hi Thanks for your replies. I understand what your saying and yes just as in the uk you need to borrow only what you can afford. But you've confirmed what I thought the banks do lend more. We dont want to live like kings lol..just not be stressing every month re bills for a nice family life not with a new bmw but somesort of reliable famly car! Maybe I should re-phrase my question...without going into specifics is there anyone out there or anyone who knows someone who has moved out to perth with a family and rents or has bought a 3/4bed house with pool in a good area maybe 10mins drive from coast and has a family income of 125k or less and is doing ok? My hubby and I are in process of doing our budgets at the moment but just as a general idea... Thanks :-) I heard from a reputable source that a mortgage of anything more than 30% of take home pay in Australia is considered to be "mortgage stress" I am not sure what repayments are currently but I think around $650 pm per $100,000 Quote Link to comment Share on other sites More sharing options...
verystormy Posted July 22, 2013 Report Share Posted July 22, 2013 We are in the process of buying - looking around and deciding wether or not to build. I earn a fair bit more than $125k. I would not consider a property at the $600k mark - which is what you are probably going to have to pay to meet the specs you want. We are happy to live a fair way from Perth - 100km south and are hoping to pay about $450k but that wont include a pool. But it again comes back to how much deposit you have - we will have 10-20%. If you have a lot you can put down, then you can afford more. Do factor in, that Oz has traditionally had very high interest rates and while they are low at the moment (not as low as the UK's) there is a habbit here of them being VERY high in the medium term. I have just done the calculation with Com Bank and put in the average perth house price which is $510k. Assumed a 10% deposit and it works out you will have a monthly repayment of $2815 per month for 30 years. Your husbands net pay after tax and super will be $5694 per month and yours $847 per month. That means that you would be within the defination of mortgage stressed (if you have amortgage bigger than 40% of income). So, if you only have 10% then you can not afford what you want - assuming a $600k house price. Nor, can you afford the average house price for Perth. So, either i would recomend you consider alternative areas or lose some of your priorities to be able get what you want. Quote Link to comment Share on other sites More sharing options...
orca Posted July 28, 2013 Author Report Share Posted July 28, 2013 Hi Thanks again for your responses. Ok-so I have done my homework and we have done our budgeting...after taking out all costs and bills: - rent 3/4 bed with pool - childcare - utilities - car tax and general car payments - petrol - contents and medical insurance - internet/landline/mobiles - commuting costs - food We would have just over $1000 per month left for weekends/any days out/coffees/clothing etc and anything else that comes up. Any thoughts on if this would be enough left for a family of 4 including 2 kids under 4? We feel it may be a bit tight so we might not be able to afford to go to Australia. All thoughts welcome. Thanks Quote Link to comment Share on other sites More sharing options...
Plimthing Posted July 28, 2013 Report Share Posted July 28, 2013 If i was so driven by money then i would stay in UK. Oz is expensive, i'm coming over for a change of life style, as my laid back attitude to work in UK drives people mad, especially in my profession. Aussies do seem to be addicted to cash and when they see us coming over they know we have a few bucks tucked away and will be quick to get it off you. If you cant afford to shop in Harrods, pop to aldi, you will find you will survive quite alright on it. Keeping up with Jones's is a rocky road to poverty. There was a guy on here saying he had been offered a job on nearly $300k and was still worried about getting by. If you can't live on that sort of money, you deserve to be taken to the cleaners in every shop you go in. Sorry if this is blunt, but please let me know if i'm wrong.. Quote Link to comment Share on other sites More sharing options...
orca Posted July 28, 2013 Author Report Share Posted July 28, 2013 Thanks for your thoughts. Im not driven by money but its important to know our family will not struggle to keep out of the red.each month. That would effect any quality of life for example if I would struggle to clothe my children..and no not in designer gear! Yes I would stay in the uk if that was the case. Its just sensible to check you can afford bills etc! Quote Link to comment Share on other sites More sharing options...
Weedolly Posted July 28, 2013 Report Share Posted July 28, 2013 Hi Thanks again for your responses. Ok-so I have done my homework and we have done our budgeting...after taking out all costs and bills: - rent 3/4 bed with pool - childcare - utilities - car tax and general car payments - petrol - contents and medical insurance - internet/landline/mobiles - commuting costs - food We would have just over $1000 per month left for weekends/any days out/coffees/clothing etc and anything else that comes up. Any thoughts on if this would be enough left for a family of 4 including 2 kids under 4? We feel it may be a bit tight so we might not be able to afford to go to Australia. All thoughts welcome. Thanks I think you must be underestimating what things will cost you - a 3 bed with a pool in a decent area will be around $600 a week! Childcare is $90 per day for each child(you can get a rebate if you qualify) have you seen the cost for nappies etc? If you want a good area, I dont know why you are looking at Clarkson, has one of the worst schools in WA, flights each year will cost you around $8000 a year for the family, my OH earns more than that and we cant go home every year. Quote Link to comment Share on other sites More sharing options...
portlaunay Posted July 28, 2013 Report Share Posted July 28, 2013 is there anyone out there or anyone who knows someone who has moved out to perth with a family and rents or has bought a 3/4bed house with pool in a good area maybe 10mins drive from coast and has a family income of 125k or less and is doing ok? My hubby and I are in process of doing our budgets at the moment but just as a general idea... Thanks :-) I think you'll find a $125k single income may be difficult to meet all of your demands. Here, there, wherever, you can't have it all ways and something will have to give. Hi Thanks again for your responses. Ok-so I have done my homework and we have done our budgeting...after taking out all costs and bills: - rent 3/4 bed with pool - childcare - utilities - car tax and general car payments - petrol - contents and medical insurance - internet/landline/mobiles - commuting costs - food We would have just over $1000 per month left for weekends/any days out/coffees/clothing etc and anything else that comes up. Any thoughts on if this would be enough left for a family of 4 including 2 kids under 4? We feel it may be a bit tight so we might not be able to afford to go to Australia. All thoughts welcome. Thanks I doubt it, I think you'll have to rerun those figures, maybe take up straighttothepoint's offer and review his budget sheet. We don't have a pool but we live in a desirable area and pay $675pw for a small 3x2. We have a small commute by bike/public transport and our kids are in school so only have childcare costs during vacations. Nannies are very expensive and we shared with friends a while back but just couldn't afford it so we now have to work flexibly to juggle the school run. 4 bed house Pool Close to Ocean Flights home (??home? Won't this be your home?) Going out Food Good area Childcare A car Which of these are you willing to compromise on because I think it unlikely you'll have all on a single income of $125k? Quote Link to comment Share on other sites More sharing options...
verystormy Posted July 29, 2013 Report Share Posted July 29, 2013 You can live on $125k. However, you are not going to well off by any stretch of the imagination. If you are left with $1000 a month - and I doubt that - that can soon be gobbled up with the unexpected. For example, I came down with an ear infection that was causing severe tinitus. Refered to a specialist. This is one of the things that Medicare doesn't cover and annoyingly neither did my private health cover even though I have top of the range - $380 a month for two of us. So, I have a bill for $450 plus follow up appointments at $120 a pop. Holidays and treats here are very expensive. We are just booking to go to Margaret river in september. Two nights accommodation - not high season, a couple of meals out, fuel and bits and pieces and I won't see much change from $1000. That is for TWO nights! Ultimately, it comes down to what you are used to. Your comined income is going to be similar to living in the UK on about £40k a year. If that is what you earn between you now, then you won't see too much of a difference. Though forget going back to the UK every year. Quote Link to comment Share on other sites More sharing options...
orca Posted July 29, 2013 Author Report Share Posted July 29, 2013 Hi Thanks for responing. Our budgeting is good as we have done a lot of research we budgeted for about $800 a week rent max. We comprimised on fligts home. Anyway what the general gist is from everyone is we cant really afford it an thats ok we just needed.to know either way. Bit sad but not willing to risk struggling so far away. Thanks so much for everyone who took the time to respond! :-) Quote Link to comment Share on other sites More sharing options...
Weedolly Posted July 29, 2013 Report Share Posted July 29, 2013 I dont think anyone is trying to put you off coming but the list you put on originally would need a bit of compromising to afford it on the salary you were talking about. Quote Link to comment Share on other sites More sharing options...
orca Posted July 29, 2013 Author Report Share Posted July 29, 2013 Thanks I know its good to be realistic though :-) Quote Link to comment Share on other sites More sharing options...
oz bound pom Posted July 29, 2013 Report Share Posted July 29, 2013 I have just done the calculation with Com Bank and put in the average perth house price which is $510k. Assumed a 10% deposit and it works out you will have a monthly repayment of $2815 per month for 30 years. Your husbands net pay after tax and super will be $5694 per month and yours $847 per month. That means that you would be within the defination of mortgage stressed (if you have amortgage bigger than 40% of income). So, if you only have 10% then you can not afford what you want - assuming a $600k house price. Nor, can you afford the average house price for Perth. So, either i would recomend you consider alternative areas or lose some of your priorities to be able get what you want. This is an excellent way of working out what people can and can't afford, if only more people took heed a lot of people wouldn't have found themselves in the mess (particulary in the UK) that they are now. To the OP, as you will no doubt know, it's all about compromises. You live to your means - some people will have made the move on less than the figures you quote and will be perfectly happy, some people will be earning twice what you do and still be miserable whining poms! If you really want to make the move then as long as you can live comfortably, not like kings or punching above your weight, then the financial side is just one thing to consider, there are so many other things that will ultimately affect your well being more. You may just need to set your sights lower until you are established and then move closer to the coast further down the line etc, afterall even 25mins from the coast is hardly a major problem, considering that you know that it won't be raining by the time you get there - unlike here! Don't watch reruns of Wanted down under, they are woefully out of date and will seriously affect your judgment. It's scary, we are about to make the move, the mrs is sorted jobs wise, I'm wary about moving without one, we may have to, in which case we'll have to work out whether the move is viable and whether we are happy for our material lifestyle to take a hit, at least in the short term until I'm in a job. Rome wasn't built in a day and all that... Quote Link to comment Share on other sites More sharing options...
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