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Candshow

Affording it all.....

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Candshow

Hi all, 

 

Wow, we are starting to stress.....how on earth did everyone finance the move?  

 

We are very blessed to have hubby's visa being sponsored - the company want us to pay back mine & our daughter's visas the first year we are there....so there is that tiny bonus....which we accept very happily....but how on earth do you finance the flights, movecube, dogs etc....it just seems financially overwhelming so I am hoping for some awesome advice on this.....

 

TIA

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F1veClaw

I have often wondered how people do it. This has been my wife's and my goal for the last 3.5 - 4 years so we have saved - taken no holidays, no honeymoon , no new cars, and opened up businesses for after hours work to make a little extra.

 

My best guess would be that many people dip deep into credit cards and overdrafts.

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ottg

The reality is that some people can get a visa but cannot afford it financially; others can afford it financially but cannot get a visa, while a very few can get a visa and financially afford it. For finances, also look at all your assets, like equity in your home or a retrenchment package. As you know, the latter is a catch 22 - you cannot get a retrenchment package and a transfer through your current employer. Other people get a great deal from their current employer by paying all their expenses.

 

In summary, its not easy and that is why many need to start financially from scratch. Many find it tough financially once landed.....until you start earning in $$. The upside is that over time it turns positive and then you get financially ahead. For some it will just take longer than for others - no guarentees. That why, once here and settled, start looking into incremental share market investing.

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Riekie

Mostly people start over financially in Oz; nothing or very little in the bank as all their savings/sale of property profits/annuities etc. have gone towards making the move to Australia possible.  Some arrive only with their suitcases and they all made it.  It's hard to start over again like 18 year olds but absolutely 100% worth it (and 100% possible!)  

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Candshow

Thanks all.....I am SO scared that we are financially sinking ourselves.....

 

I suppose this is the beginning of the emotional rollercoaster ride.....

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Riekie

...and like any rollercoaster ride, you'll have the scary bits, the boring bits and the exciting bits... 😊

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Carrots

We will have to drain our savings and investments for the move, (and what I get for my car should pay for the carpet crappers, a.k.a. pets), but once we're there the "concerns" start. If our house was fully paid here, it would only finance a deposit for a home there.

Our RAs here will be pretty much worthless over there, so we have to start saving for retirement all over. 

Edited by Carrots

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ChrisH

This is a very personal choice and not a very popular one to make, but bringing over pets is super expensive. 

The toughest decision we made was to leave our pets behind in South Africa, we do regret the choice sometimes but with the amount of expenses we had once we got here it was the right choice to make. 

Relocating 1 dog is around R40k - you could fly your entire family to Australia for that money.  Depending on which city, it could be up to 2 months rent.  We had to put down 3 months of rent in advance (fresh emigrants that hadn't had a payslip yet, just an employment contract) + the bond (effectively a 4 months rent lump sum).  We also had to buy our cars cash as my probation period was 6 months, couldn't get finance.

 

The other alternative for pets is to leave them with family here and start their move process once you're settled in Australia.  Paying for these things is much easier when you earn $$$.

 

In terms of RA, we cashed out everything and used the entire amount on a deposit for our house - its still an investment so not too worried on that front. 

Once in Australia, I suggest bumping up the mandatory 9.5% super contribution to the max if possible.  I've set my super contribution to 15%

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LM17

Yip its a mind shift to accept your RA (or Prov fund ) is now tied up in prop here (we did the same)  -- but historically property does well in Aus as an investment (lets hope), and at least we not paying someone else's bond anymore  😉 

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ottg
18 hours ago, LM17 said:

property does well in Aus as an investment

The largest property decline occurring over the last few years! No gaurentee that an IP property is a solid investment while your PPOR is a must (not an investment as it does not provide income).

https://www.smartcompany.com.au/industries/property/june-2019-update-property-markets/

 

 

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LM17
6 hours ago, ottg said:

The largest property decline occurring over the last few years! No gaurentee that an IP property is a solid investment while your PPOR is a must (not an investment as it does not provide income).

https://www.smartcompany.com.au/industries/property/june-2019-update-property-markets/

 

 

haha very true!   the old property debate- yip the market has pulled back over the last 2 years (very hard here in Sydney)  We did lots of research (Areas, price point etc)  and decided to get into the market in April .....I am sure we wont see the same growth in he next 5-7 years (the view we took) that we had in the last 10 years in Sydney ,  but we should see at least  growth, that on the back of savings in rent (paying own debt vs someones else bond) we believe it to be right decision.... (also we hate moving so renting and moving every 12-24 months would kill us 😉)

 

As for Investment prop - what makes  attractive in NSW is negative gearing , it allows you to be cash neutral pretty quickly and then over the years you start seeing gains (hopefully) but agreed you want a well balanced portfolio of equity and property in my view ....FYI June was the first month 2 years we had (very small) positive growth in Sydney and Melbourne, so a good sign on the back of the rate cuts..

 

https://www.domain.com.au/research/domains-property-price-forecasts-june-2019-851001/?utm_source=domain&utm_medium=email&utm_campaign=domain_r_Activation+-+Interest+Rate+Followup+-+03.07++DLF+ONLY+v1_all

 

Edited by LM17

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ottg
15 hours ago, LM17 said:

As for Investment prop - what makes  attractive in NSW is negative gearing

Negative gearing is only attractive for those with large tax liability, and as you say, to balance risk in a portfolio. It still cost you $ irrespective how you look at it, that why asset rich cash poor. Positive gearing again is good for cashflow. You can achieve similar with other types of asset classes eg property securities. Even better, just by renegotiating your mortgage interest rate or refinance rate with a lender can get a saving (effectively cash) of $5k pa immediately (on PPOR & IP). Its surprising to see how many lower tax bracket people have IPs and negative gearing (>50% @ 80k pa). Here is a graph of income brackets vs neg gearing

https://www.abc.net.au/news/2018-11-16/fact-check-negative-gearing-under-80000/10387552

 

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ottg
17 hours ago, LM17 said:

positive growth in Sydney and Melbourne

Few thoughts - always good to dissect larger metropolitan areas into smaller areas based on postal codes. All areas have their growth points and even some street-blocks are better than others. The question is how do you discover those? What research will you do different to what full time estate agents do? Easy for anyone to say find property in distress. When looking across the entire sequence of events for a distressed property, at what point will you become aware of those? When do you act? When it goes on a auction it may be too late?

 

Edited by ottg

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Riekie
On 7/3/2019 at 9:11 PM, Carrots said:

 

Our RAs here will be pretty much worthless over there, so we have to start saving for retirement all over. 

 

Pretty much the case for everyone and the older you are when you get here, the harder it is to save up enough for a decent retirement. So when I hear this younger crowd saying they'll immigrate later, there's plenty of time, I want to shake them... 😅

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Riekie
On 7/4/2019 at 8:40 AM, ChrisH said:

 

The toughest decision we made was to leave our pets behind in South Africa, we do regret the choice sometimes

 

 

100% agree!  I cried my eyes out but we were very lucky that we knew the homes they went to (awesome animal lovers!) Also at the time we came out, the quarantine time was brutal and we could not do that to them. Still feel guilty though. 

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Riekie
On 7/6/2019 at 3:49 AM, ottg said:

 

some street-blocks are better than others. 

 

 

Best advice we ever got:  Buy the smallest house in the best street rather than the best house in the worst street.  We literally did that and made a killing when we sold it (even got more for it that the bigger homes that sold 6 - 18 months earlier) because it was in the right spot. Also don't discount up and coming areas - buy a bargain when it starts showing potential and sell it when the area is booming. The thing with property is that it takes time (7-10 years) for the natural flow of the market so you have to be patient and buy/sell at the right time.

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