MomOfTwo Posted June 2, 2015 Report Share Posted June 2, 2015 So, we are trying to figure out our things, time lines etc.....but it is all a bit of a mess really until i have more of a clear understanding....here is the situation:We are in Canada at the moment counting of the days till we can get to Aus...however, for financial reasons, we won't be able to come immediately after receiving our PR.....we need at least 2 or 3 more years to save up and we have the opportunity to do so now for which we are very thankful...however, we realize the longer we wait to come there the longer it will take to pay off a house and the closer it will get to retirement . My husband is pulling 38 so we plan to be there by around 43 (him not i...im the younger one :-))))So two questions I'm praying i can get some clarity on:1) When we get our PR approved and we have done the trip to Aus which has to happen within a few months, can we also open a bank account there and then before leaving back home again, and then put money into the account every month and then say, 6 months later apply for a home loan and buy a house so long, paying it off even though we are not yet IN Australia? We were thinking it would take and save a lot of years if once we have a PR but not yet settled in Aus but overseas, if we could at least start paying off a house so that when we do arrive, we have been paying off for at least 3 years plus we have a house to come live in....in stead of going through the rental headache . Does anyone know if this is at all possible or can anyone please put me in contact with some or other professional that deals with this and that would know the implications ? I know you don't pay stamp duty on your first house, would having a PR but not yet living in the country influence that? And would we still be legible for the money that the government gives you tax free when you buy your first house? I know this is all a lot of questions.....but this seems to be the only way we would be able to get ahead. We would have around 10% deposit on a $500 house and some savings for the rest of the expenses like the lawyers costs etc, but I don't know if that would be enough for the banks if we don't physically live in Aus.Who do I contact with all this questions ?? I don't know where to start, and I feel a bit anxious. So I'm hoping some SAaustralia angel has all the answers :-)2) Would we still be able to retire comfortably ( as in not starve and be able to live life) if we only get there around 44/45 and then start the retirement funds? We would have a few thousand by then saved up to put into a retirement fund, and of course through work then, plus we actually haven't stopped paying ours in SA and we will get quite a good amount out even if put into Dollars (that is if the Rand don't go from 10 to 20 God forbid), but we would in any case stop paying in SA and freeze it until the 55 age and take that money and push it into the Aus retirement fund. Im really stressing bout retirement...it feels like i learned nothing from my parents situation....poor mom is 65 and can't even think about stop working as they will never make it!thank you thank you thank you .....im talking out loud as I'm typing, as it is stressing me out lol if someone had to hear me compose this topic i think they will be think I've gone absolutely bonkers. 1 Quote Link to comment Share on other sites More sharing options...
SurferMan Posted June 2, 2015 Report Share Posted June 2, 2015 Howdy MomofTwo,I will reply with a PM. But the short answer is yes it is TOTALLY doable. Quote Link to comment Share on other sites More sharing options...
SurferMan Posted June 2, 2015 Report Share Posted June 2, 2015 See PM MomofTwo Quote Link to comment Share on other sites More sharing options...
monsta Posted June 2, 2015 Report Share Posted June 2, 2015 (edited) Hey MomOfTwo,If surferman didn't answer you already... Its good that you are thinking about tax implications I am not a professional licensed financial planner. I always recommend people should contact one in these situations. But here are some things to help you research this.The tax office explains the tax implications here: https://www.ato.gov.au/General/Property/Your-home/Buying-and-selling-your-home/There are other things you should consider before buying a property. Things like negative gearing http://www.realestate.com.au/blog/how-negative-gearing-works/Also, remember the issues of the day. The cash rate from then reserve bank is at an all time low. http://www.smh.com.au/business/the-economy/rba-leaves-rates-on-hold-at-2-at-june-meeting-20150602-ghevqg.html This has led to experts being concerned that people are borrowing too much.@Nev has pointed out that property prices are extremely high compared to monthly rentals. That's because the average house sells for 5.5x the average household income. So people just can't afford to pay an "appropriate" rent. So, perhaps another form of investment may be better? https://www.moneysmart.gov.au/investing has details on all sorts of investments you could invest in, e.g. EFTs or managed funds. The " barefoot investor" also raves about listed investment companies like AFIC or ARGO as they are safe, long term investments with low fees. http://barefootinvestor.com/how-to-invest-guide/listed-investment-companies/ So, in short, contact a licensed financial adviser. Then ask him/her if an investment other than property could also be a good choice. Property can be a good investment if you know the market here well, but don't put your blinkers on . Edited June 2, 2015 by monsta Quote Link to comment Share on other sites More sharing options...
Mara Posted June 2, 2015 Report Share Posted June 2, 2015 I only have one answer for you, with regard to the government contribution to first home buyers in Australia, NO, you would not be eligible for it, as you are not living here. It has to be the family home.. not a property investment home. 1 Quote Link to comment Share on other sites More sharing options...
Nev Posted June 3, 2015 Report Share Posted June 3, 2015 (edited) Same disclaimer, im not a financial adviser and these are my musings, get some advice if you need it,A very rough rule of thumb is that you can draw 3% of your retirement savings a year and expect it to last, less on bad years, etc, but this works as a guideThat means you will get a $30k salary off every million in the bank, Every 10 years inflation adds roughly 30% to the amounts, so in 10 years a $30k salary would need to be $40k to get the same benefit.So if you plan to retire in 10 years you need $1.33 million in the bank to live like a salary of $30k per year would get you now.I don't think anything under $60k could be considered a comfortable retirement, even if you costs are lower once retired, so in 10 years you would need $2.66 million in the bank to live at that level.Hows these for scary numbers for ex-pats, we started again when we got here, the light at the end of the tunnel is a train......Happy to hear anyone else's musings...... Edited June 3, 2015 by Nev Quote Link to comment Share on other sites More sharing options...
SurferMan Posted June 3, 2015 Report Share Posted June 3, 2015 Well there you go MomofTwo,Enough two cents from varying sources to keep you busy!!!Keep us posted on how you go! Quote Link to comment Share on other sites More sharing options...
monsta Posted June 3, 2015 Report Share Posted June 3, 2015 Yep, whatever you do.. Do your homework And yes, contacting a licensed financial advisor in Australia is a fantastic idea. The cost of the consultation is well worth it, if you think about how much they could save you in the long run... Quote Link to comment Share on other sites More sharing options...
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