TO THE AUSSIES THERE

[Lynn]

Hi there, can someone tell me what a typical budget looks like and how much would the ranges be, e.g. rates p.a. for a house in the $750 000 mark, Brisbane area, medicare, telephone, electricity, food p.m, transport, leave out children's schooling as I understand that is relative by a big margin, security, day care (I will take this into a/c), anything else I am leaving out?

Thanks for the help.

k.rgds

Lynn

[Mara]

Try doing a search on 'budget' it has been done numerous times before.

[Bob]

If you're coming as a permanent resident you can access Medicare. This will pay 85% of your local GP's or specialist's consultation cost and free hospital treatment at any public hospital around Australia.

This is 1.5% of your gross income (Medicare levy, on top of your normal income tax)

I don't pay for security. No need. I have no burglar bars and no big dog and no fencing out the front! Nothing disappears.

I have 1Gb download on Telstra Wireless Broadband @ 256 kb/sec speed for $49.95 / month.

I have FoxTel satellite TV (organised by Telstra, so that I get 125 free local phone calls from my home phone each month) for $55 a month

Petrol is around $1.30 a litre, diesel $1.40 a litre, but lots of Australians like myself convert their petrol cars to run on Liquid Petroleum Gas (a by-product of petrol) @ 70c a litre (half price running costs!)

Rates are levied on the value of a house and what services are delivered to the property (water, sewerage, rubbish collection, etc.) Allow between $1 000 to $2 000 a year for rates.

Life insurance is no charge if you get it thro your Superannuation (it comes out of your employer's contribution into your Super account)

House insurance for me is $450 a year (house and contents insurance, in case of fire, burglary, etc.)

Car insurance, valued on the car's market value, allow up to $1 000 yearly (I pay $450 a year for my new Nissan Patrol 4WD valued @ $60 000)

Car registration is valued on 4 cylinder, 6 cylinder or 8 cylinders engine. My 6 cylinder car cost $650 a year, my 4 cylinder car cost $550 a year. This includes 3rd party bodily insurance in case anyone is hit by you or injured while a passenger in your car.

G.S.T. (Goods & Services Tax) is 10% on everything other than fresh food, education items, medical items and rent.

income tax:

first $6 000 tax free

$6K to $30K @ 15%

then $30K to $75K @ 30%

then $75K to $150K @ 40%

then over $150K @ 45%

+ 1.5% Medicare levy, as mentioned.

[Nilo]

$750 000 house!!! WOW!!!!!!!

[Springbok]

I have 1Gb download on Telstra Wireless Broadband @ 256 kb/sec speed for $49.95 / month.

You can get 5Gb download on Vodafone Wireless Broadband for $39 / month....

[Lynn]

Try doing a search on 'budget' it has been done numerous times before.

Thanks Mara

[Lynn]

$750 000 house!!! WOW!!!!!!!

Hi Nilo, Is that expensive? We need space - now to train my husband to clean!!!!

Lynn

[Lynn]

If you're coming as a permanent resident you can access Medicare. This will pay 85% of your local GP's or specialist's consultation cost and free hospital treatment at any public hospital around Australia.

This is 1.5% of your gross income (Medicare levy, on top of your normal income tax)

I don't pay for security. No need. I have no burglar bars and no big dog and no fencing out the front! Nothing disappears.

I have 1Gb download on Telstra Wireless Broadband @ 256 kb/sec speed for $49.95 / month.

I have FoxTel satellite TV (organised by Telstra, so that I get 125 free local phone calls from my home phone each month) for $55 a month

Petrol is around $1.30 a litre, diesel $1.40 a litre, but lots of Australians like myself convert their petrol cars to run on Liquid Petroleum Gas (a by-product of petrol) @ 70c a litre (half price running costs!)

Rates are levied on the value of a house and what services are delivered to the property (water, sewerage, rubbish collection, etc.) Allow between $1 000 to $2 000 a year for rates.

Life insurance is no charge if you get it thro your Superannuation (it comes out of your employer's contribution into your Super account)

House insurance for me is $450 a year (house and contents insurance, in case of fire, burglary, etc.)

Car insurance, valued on the car's market value, allow up to $1 000 yearly (I pay $450 a year for my new Nissan Patrol 4WD valued @ $60 000)

Car registration is valued on 4 cylinder, 6 cylinder or 8 cylinders engine. My 6 cylinder car cost $650 a year, my 4 cylinder car cost $550 a year. This includes 3rd party bodily insurance in case anyone is hit by you or injured while a passenger in your car.

G.S.T. (Goods & Services Tax) is 10% on everything other than fresh food, education items, medical items and rent.

income tax:

first $6 000 tax free

$6K to $30K @ 15%

then $30K to $75K @ 30%

then $75K to $150K @ 40%

then over $150K @ 45%

+ 1.5% Medicare levy, as mentioned.

Thanks Bob - you are a star! appreciate the help. k.rgds Lynn

[Bob]

You've got keep in mind my particular set of circimstances won't be the same as 99% of South Africans just turning up on Australia's shores.

My mortgage is paid up whilst most S.Ans will have a hefty mortgage.

I live in the bush a bit . . . . too far from my local telephone exchange to get ADSL or in the city to get Wireless Broadband, so have to rely on Telstra's Next G network for reception . . . . good, but expensive!

I own my cars outright, so don't have any monthly car repayments.

I don't need to send my 25 year son off to child car anymore, so couldn't tell you what the cost involved is????

[Nilo]

Hi Nilo, Is that expensive? We need space - now to train my husband to clean!!!!

Lynn

Hi Lynn

For us that is expensive. Can't remember where you'r going to now, but here in Brissie you'll be able to buy quite a house for that price. I would say an 4 bed 2 bath double garage good location house here in Bris would cost your $550 000 to $600 000 that is definitely above av.

At the moment a normal good new Or ..ish house will go for about $400 000 to $500 000.

Hey, but if you can afford it go for it!! Lucky you!!

lovies

N

[DavidI]

Hi there, can someone tell me what a typical budget looks like and how much would the ranges be, e.g. rates p.a. for a house in the $750 000 mark, Brisbane area, medicare, telephone, electricity, food p.m, transport, leave out children's schooling as I understand that is relative by a big margin, security, day care (I will take this into a/c), anything else I am leaving out?

Thanks for the help.

k.rgds

Lynn

Hi Lynn,

With regards to the repayments for a house valued at $750K and assuming that you hold a long term visa the numbers may look something like this:

The most that you can borrow is 80% and the property MUST be for an owner occupied residence.

Property valuation = $750,000

Deposit = $150,000

Loan = $600,000

Stamp Duty = $29,000

Legals and setup costs = $2,000 approx

LMI = $0 Lenders Mortgage Insurance as an 80% lend.

FHOG = $0 as not eligible

The repayments for a $600,000 loan based on the standard variable rate of 8.97% is $4,800 per month (Principal and Interest). You should be able to obtain a better rate than this.

If you would like further information, please contact me via private message or email.

Cheers

David

[Volare]

You can get 5Gb download on Vodafone Wireless Broadband for $39 / month....

Hi - Could one use a normal 3G Cell Phone from SA connected to the Laptop for that ? I use Vodacom here and it works perfect.

Thanks

[Bob]

Taking out a $600 000 and repaying $4 800 a month for the next 20 / 25 years is too much!

You'd have to be earning around $200 000 a year to afford that sort of repayment.

A lot of people are silly in that they mortgage up to the hilt, buy BIG places that have more to do with their egos than common sense, and then default on their mortgages when the interest rates take a rise . . . . . and rising they are in Australia.

Be smart. Be Australian.

Live within your means and don't make your new life in Australia a 20 "sentence" of repaying debts.

Australians don't have the same sense of wanting to keep up with the Joneses as others coming to this country have.

They don't mind if your drive a Holden instead of a BMW and live in a $400 000 house instead of a $600 000 house.

Keep life simple and enjoy it!

. . . . . . (wise words of an old fool)

[Overtaker]

I agree with Bob... We did a few sums and worked out the following:

If we were to buy an average 4x2 somewhere on the mid to outskirts of Perth, it would cost about $460k. I forget the details, but it worked out to about $800 a week. I can rent the same place for $450 a week. If one invests the remaining $350 at say 10% pa, then after about 10 years the nett difference in what you owe vs what you have is about $500k odd.

it really seems to be a renters market at the moment - if you can find a place.

[Nilo]

Buuuuuut....... property will be much more expensive then!!!

I believe in starting small and then upgrade to bigger as your equity grows on the property would also be a good option.

Don't jump in at the deep end just yet!!

[bluebonnet]

$750 000 house!!! WOW!!!!!!!

That is what I thought. WOW!!

[bluebonnet]

Taking out a $600 000 and repaying $4 800 a month for the next 20 / 25 years is too much!

You'd have to be earning around $200 000 a year to afford that sort of repayment.

A lot of people are silly in that they mortgage up to the hilt, buy BIG places that have more to do with their egos than common sense, and then default on their mortgages when the interest rates take a rise . . . . . and rising they are in Australia.

Be smart. Be Australian.

Live within your means and don't make your new life in Australia a 20 "sentence" of repaying debts.

Australians don't have the same sense of wanting to keep up with the Joneses as others coming to this country have.

They don't mind if your drive a Holden instead of a BMW and live in a $400 000 house instead of a $600 000 house.

Keep life simple and enjoy it!

. . . . . . (wise words of an old fool)

Very wise words indeed. Ask the people in the USA what happens if you want to keep up with the Joneses all the time. Foreclosures!

[Lynn]

Taking out a $600 000 and repaying $4 800 a month for the next 20 / 25 years is too much!

You'd have to be earning around $200 000 a year to afford that sort of repayment.

A lot of people are silly in that they mortgage up to the hilt, buy BIG places that have more to do with their egos than common sense, and then default on their mortgages when the interest rates take a rise . . . . . and rising they are in Australia.

Be smart. Be Australian.

Live within your means and don't make your new life in Australia a 20 "sentence" of repaying debts.

Australians don't have the same sense of wanting to keep up with the Joneses as others coming to this country have.

They don't mind if your drive a Holden instead of a BMW and live in a $400 000 house instead of a $600 000 house.

Keep life simple and enjoy it!

. . . . . . (wise words of an old fool)

Hi Bob - wise words - thanks, Lynn

[NikkiH]

$750 000 will only buy you an average house (not fancy at all!!) if you want to live close to the city in Melbourne, e.g. within 10-15km of the CBD. In phraran - near chapel street, you can try to get a townhouse for $850 000.

The further out you go (from the cbd) the cheaper it gets. Being in walking distance from the railway and shops can also make a huge difference in price. Another factor is good schools catchment areas.

If you can afford to buy close to the city at least you know that your property will always be in demand and therefore the price is unlikely to come down. But it is getting so expensive now that it is just not affordable anymore. So I have started to look at other areas at around $350 -$400K. Go 25 - 40 KM's away from the CBD and there you will find some very nice places (big) for that price, still on the railway line taking you still under an hour (45mins), or an hour to get to work. If you dont mind fixing the place up over time you can pay even less than that.

And trying to save the deposit will take a long time for a $750k place (for me anyway )

Lately the interest rate is rising fast and everyone is waiting to see if the house prices are going to fall or not... time will tell - I'm selfishly hoping for them to fall

So really the house prices can differ quite a lot, and it is worth looking at cheaper areas.

[Enrica]

Hi overtaker

Who is going to pay you 10% per annum interest?The average interest being paid by the banks is 7.5% - 8% on a 12month investment.

Plus 50% of that interest of that you are going to pay back to Kevin Rudd and Co in the form of captial gains.

After 10 years, can you imagine what that a$500 000.00 property is going to cost? Property value in Australia ,especially in Perth have increase in value by

10-15% per annum.

There is no way around this, if you want to own a house, buy what you can afford , something that is not going to strech you to the limit.

Thank heavens the pressure is off here, you dont have to keep up with the "jones"

[NikkiH]

Hi Lynn,

With regards to the repayments for a house valued at $750K and assuming that you hold a long term visa the numbers may look something like this:

The most that you can borrow is 80% and the property MUST be for an owner occupied residence.

I have researched this because I just could not believe that I would have to save up such a large deposit as a first time buyer, my friends at work told me that they got 95% homeloans, and on the web I found ANZ offering a 95% homeloan. I am sure there are benefits and better deals if you give 20% if you can afford it, but its nice to know that you have other options. There are also places offering 100% loans but they are not the mainstream banks from what I saw.

[Overtaker]

Hi overtaker

Who is going to pay you 10% per annum interest?The average interest being paid by the banks is 7.5% - 8% on a 12month investment.

Plus 50% of that interest of that you are going to pay back to Kevin Rudd and Co in the form of captial gains.

After 10 years, can you imagine what that a$500 000.00 property is going to cost? Property value in Australia ,especially in Perth have increase in value by

10-15% per annum.

There is no way around this, if you want to own a house, buy what you can afford , something that is not going to strech you to the limit.

Thank heavens the pressure is off here, you dont have to keep up with the "jones"

I'm still grappling with this... Why should I pay a huge amount to buy a house that is too small and far away, when I can rent a bigger one closer to the city for less... One day sanity might prevail, and hopefully it won't be too late...

trouble is, I am one of the twots who likes to keep up with the Jones'... I like my big german luxurg cars, and overbearing houses etc...

Maybe one day I'll grow up... Hopefully before I get back from RSA in May...

[CapeTownToolNut]

Taking out a $600 000 and repaying $4 800 a month for the next 20 / 25 years is too much!

You'd have to be earning around $200 000 a year to afford that sort of repayment.

A lot of people are silly in that they mortgage up to the hilt, buy BIG places that have more to do with their egos than common sense, and then default on their mortgages when the interest rates take a rise . . . . . and rising they are in Australia.

Be smart. Be Australian.

Live within your means and don't make your new life in Australia a 20 "sentence" of repaying debts.

Australians don't have the same sense of wanting to keep up with the Joneses as others coming to this country have.

They don't mind if your drive a Holden instead of a BMW and live in a $400 000 house instead of a $600 000 house.

Keep life simple and enjoy it!

. . . . . . (wise words of an old fool)

Ja - Bob is right,and he's no old fool.......It makes sense to live within your means.

I'd improve on that and say live BELOW your means,like I've always done,so there's always excess liquidity.

I would also venture to say that it is VERY difficult for South African immigrants in general to live a "smaller" life in OZ or here for that matter,when they have been force fed the "Live Large" American TV diet for so long (since 1994 - amazing coincidence hey?)

When the Broederbond Apartheid Club moved out,the IMF,World Bank and Bank of International Settlements moved in with their "easy" credit.(which actually is the opposite of easy.)

So now,many South Africans are living TOTALLY on Credit,even their groceries Bob ! Unbelievable

Outward image is EVERYTHING here,so you must not be seen to be poor or in the middle.

I'm often enviously asked what's wrong with me,coz my house is payed,my car is payed,so I'm asked "why don't I splurge on holidays or a flash car or another property."

It took me 10 years to pay off my bond and that's the way it's going to stay,coz that's REAL freedom.(even though a house is only ever yours for as long as you keep paying the rates thereon every month.)

Image is a beast that has to be fed continuously.

The bigger house,bigger car,exotic holidays,the caravan,quad bike ,jetski etc.

Buy now,pay forever seems to be the accepted norm,because people won't delay their gratification by saving for years for an item."I want it all and I want it now,because if I die tommorrow,the Bank is sitting with all the bad debt" seems to be the going mentality.

Peoples' lifestyles and possessions are the only validation for their existence it seems.

I think it's very important to them to live a fast paced,stressful lifestyle overfilled with activities that cost credit money,because if they slow down,they'll have to "entertain" themselves and not "be entertained",by throwing a credit card at everything.

I think the American want it all,want it now attitude will slowly but surely also infiltrate the good solid Aussie values and poison your youth,coz that's where it starts.

The banks stand to make a lot of money by fostering a buy now pay later(forever actually) culture.

It's just a matter of decades if not less.

There,that's my 10 cents worth! Bye All

CTTN

[Firstworld_girl]

Sorry to blow your cover CTTN.....

you have investeed quite heavily in....your garage - not the vehicle BUT da Tools hanging from the roof, against the wall , on the shelves.......

so please allow Overtaker to enjoy his BMW

xxx

[Lynn]

Hi Nilo, Bob, Overtaker (at least not the Undertaker), Firstworldgirl and all that contributed to this topic. At it evolved, I enjoyed the replies more and more. Especially the tools hanging from .... and the giving up of the BMW, etc.

Let me really make you depressed. You guys were having so much fun answering my post that I did not have the heart to tell you that we were going to pay cash for the house of AUD 750 000!!!!!

But, hey, prolonging it really brought out some wisdom from Bob and CTTN, awe from Nilo and Edwina, splitting on from FirstWorldGirl, defence tactics from Overtaker - I loved it.

Thank you though, you have all made incredibly valuable points that won't go unheaded. My husband is a civil engineer and we enjoy buying houses and renovating and then selling or renting. So we will be having a great deal of fun in Aus going about our business of renovating (we have to do everything ourselves) and selling / renting. The areas that we have looked at have all attracted a house price of +- AUD 700 - 750 000. Hence the question - but we have the cash for this, and would like to travel very little if we secure jobs in Brisbane. If we can purchase something less expensive, that does not need any work, and then buy another that does, this probably is the route that we will go. If we have to bond, well we will for a certain amount, but it will be for the 2nd property and for the short term.

With interest rates rising in Aus (or being as high as they are now), there should be a dampening in the property market if not a slight decline or stagnation. Similar to what is happening to SA, but for different reasons. So we will not hurry in.

Thanks for the advice, guys - as always, I enjoy talking to you and when we are in Brisbane, we would love to meet some of you that are close enough.

K.rgds

Lynn