Way Down the Road...

[Snag 57]

So, this might be a bit miscellaneous question. My husband and I have talked about moving to Australia in the next few years (I know, I know, why would we, after ll that darn US immigration paperwork and process? We've gotta be crazy...). It's due to family reasons, such as my father's failing health.

But, I suppose the question is, how do we Aussies do it with the cost of living Down Under? My husband and I hate debt (who doesn't?) and have strived for the past year to get out of it. But, it really seems impossible in Australia to maintain that. Here in the US, we can almost buy a house outright (because houses are $40,000+), groceries add up to around $200 a month for two people, and we live comfortably on one income (I'm a homemaker). However, it just seems unrealistic to do that in Australia.

Funny story - when my husband and I were dating, he came out to Australia. He gawped at the fact that I bought a 600ml bottle of Coke for $3.50. I shrugged and said that was normal for Sydney cafes. When I came to the US two months later, I gawped at the fact that it was $2.50 for a 450ml glass of Coke, unlimited refills.

Yes, I lived in Australia for 21+ years of my life. My parents worked outside the home. Dad worked over 60 hours a week, and we were middle class (and my parents were in some form of debt still). Mum says it's impossible to do in this economy.

This isn't to attack my country. I love it, I miss it, and would dearly like to go back one day. But, I'm unsure how to afford it all. Suggestions? Hints?

Edited March 5, 2014 by Snag

[Juan Bravo 14]

I had a greencard for most of my life... and the one thing I couldn't do was move out of the country.... otherwise you will lose your legal permanent residence (LPR). You can travel and such and in my case even attend college outside the USA but I could not spend more than 6 months out of the year outside the USA or risk losing my legal permanent residency.... I don't know if things have changed now but I would definitely check. I finally became a citizen in 2011... now I can live wherever I want. Can someone else offer some advice?

[darin&josh 18]

The difference in cost of living definitely becomes much more noticeable after you spend time in the US. The rent my partner pays in Iowa is a quarter of something similar where I am, and eating out and groceries are also a lot cheaper in the US. But the average incomes for Australians (particularly lower and middle level wages) are higher so that should be taken into account when comparing the two.

And while some costs are the same no matter where you are in Australia (600ml coke is always going to be ridiculously expensive), other costs can vary just like within the US. Rent, transport, fuel/gas, even utilities, can vary depending on the area you choose to live.

If you are moving back to spend time with your father and family, then I would probably start looking at the cost of renting/buying in that area, what the employment situation would be like for your US partner, including likely earnings, and then working out if it is manageable to remain a one-income family.

The rest of it just comes down to household budgeting, and it's possible to avoid using credit cards etc, but it takes discipline. I take leftovers to work for lunch, and bring a can of soda from home which works out to 55 cents (if you buy a 24 pack from the supermarket) rather than 2.50 or more at the cafe. When I can't bring myself to buy things such as clothes and electronics at Australian prices, I order items online or buy them in the US when I visit my partner.

As Juan Bravo pointed out, I would also look into making sure all that work to get your residency is not wasted. Do research into what is needed to maintain your LPR.

[razspaz13 30]

snag

from the first time my aussie hubby visited the usa he was amazed at the prices of everything

with economy of scale, think of the 335 million population vs 25 million and how people in each country spends......

moved to oz in 1999 from usa, and overall the three biggest costs I believe now are

housing affordability, be it buying or renting... HUGE

petrol/cars

utilities/food

we have lived in two states in OZ, and it is not getting any easier.

private health insurance has gone up every year since its intro in 2000

the job situation in oz is not great either with many companies letting people go, in the hundreds and thousands......

no easy answers, I suppose you have to accept that Australia is very expensive to live in

wait till you see the price of a dozen eggs if soft drink got to you!! LOL (or as my sister said "wow a carton of beer here is crazy")

best of luck

cheers from down under

[Kiwinyc 62]

Surely it depends on where you want to move back to in Australia? Unfortunately Sydney and Melbourne have both just made it into a 'Top Ten Most Expensive Cities to Live in' (I was surprised Melbourne is included in that) but the strength of the Australian dollar is what is causing all the grief. In the US its really only New York City thats comparatively as expensive. I've moved from London and wouldn't be able to afford to live in NYC and probably San Francisco without a mortgage but everywhere else is incredibly affordable in comparison. I lived in Sydney for 3 year from 1999-2001 and real estate was the biggest issue, rent was ok but buying required a move out to at least the Inner West or North Shore. If you were willing to live in Perth or Newcastle or Adelaide or away from a big city I'm pretty sure cost of living is affordable just like any other country.

[Lainie B 465]

When I first moved to the US I was shocked at how expensive things seemed. That was back when the Australian dollar was half the US. Now they are about equal, when we visit Australia my husband is the one who is shocked at prices. But you can't compare prices directly. Some things are relatively cheaper in the US, some in Australia. Also wages are generally higher in Australia (though so are taxes). I would be earning twice as much in Australia for the same job I have in the US, plus i would be getting superannuation. Eating out is more expensive in Australia, but partly because wait staff in the US an be earning as little as $2.13 an hour plus tips, which is insanely low.

Buying a house is ridiculously expensive in Australia. Cars are more expensive (but they hold their value better). Rent is variable in both countries, depending on where you live.

Anyway, if you do end up returning, I think you'll find that once you get over the initial shock that you'll do OK. People tend to focus on things that are relatively more expensive and overlook what is cheaper.

[K Jewels 1]

I am currently living with my fiance in Australia and can tell you (coming from the US) everything is so damn expensive here lol... I think the easy ballpark figure is about 2x what I normally pay for items in the US, sometimes as much as 3-4x.

We share a house in Melb CBD with housemates simply because it was convenient to get to. I was lucky to get a job even before I landed ( I didn't think I was lucky at the time) but it seems like jobs are harder to get here.

You gotta take into consideration the population in the US is about 14x the population of AU and could lead to less demand and increased prices. We would buy things shipped from China to the US for less cost and faster timing than from China to AU even though AU is a lot closer to China.

If it makes things easier look at things in percentages and compare things within the local economy vs cross comparison. I've lived here for almost 2 years now and still find prices appalling when comparing between the two countries. That said, we've managed to save money here based on my full time work and her part time work. Quality of life does feel a little better in the sense that there are a lot of holidays over here ( like a whole month off for xmas lol).

If you need assistance to get off your feet there is always Centrelink. We just manage and budget within range and still enjoy going out. There are ways to get things from deals (like paying $10 for movies thru Optus vs $20 at the door)... I think if you go on expat forums it would be more helpful.

I'm still looking into this but I think as Americans working in AU there is a $97k exemption on taxes, of course conditions apply.

Hope this gives you another perspective

[Snag 57]

I had a greencard for most of my life... and the one thing I couldn't do was move out of the country.... otherwise you will lose your legal permanent residence (LPR). You can travel and such and in my case even attend college outside the USA but I could not spend more than 6 months out of the year outside the USA or risk losing my legal permanent residency.... I don't know if things have changed now but I would definitely check. I finally became a citizen in 2011... now I can live wherever I want. Can someone else offer some advice?

Forgive me for lack of clarification - I was meaning once I have citizenship in the US. Then we'd consider moving back to Australia. I know, it might seem counterproductive, but we figure citizenship opens a ton of doors, and it'll also be that if we ever choose to then move back to the US... y'know? All this work, I know. Even if we were to live a year and one month out of the US, it's better to do that on citizenship than a possible revoked GC.

The difference in cost of living definitely becomes much more noticeable after you spend time in the US. The rent my partner pays in Iowa is a quarter of something similar where I am, and eating out and groceries are also a lot cheaper in the US. But the average incomes for Australians (particularly lower and middle level wages) are higher so that should be taken into account when comparing the two.

And while some costs are the same no matter where you are in Australia (600ml coke is always going to be ridiculously expensive), other costs can vary just like within the US. Rent, transport, fuel/gas, even utilities, can vary depending on the area you choose to live.

If you are moving back to spend time with your father and family, then I would probably start looking at the cost of renting/buying in that area, what the employment situation would be like for your US partner, including likely earnings, and then working out if it is manageable to remain a one-income family.

The rest of it just comes down to household budgeting, and it's possible to avoid using credit cards etc, but it takes discipline. I take leftovers to work for lunch, and bring a can of soda from home which works out to 55 cents (if you buy a 24 pack from the supermarket) rather than 2.50 or more at the cafe. When I can't bring myself to buy things such as clothes and electronics at Australian prices, I order items online or buy them in the US when I visit my partner.

As Juan Bravo pointed out, I would also look into making sure all that work to get your residency is not wasted. Do research into what is needed to maintain your LPR.

Great, sound advice. Thank you. I think budgeting will play a huge factor into it.

snag

from the first time my aussie hubby visited the usa he was amazed at the prices of everything

with economy of scale, think of the 335 million population vs 25 million and how people in each country spends......

moved to oz in 1999 from usa, and overall the three biggest costs I believe now are

housing affordability, be it buying or renting... HUGE

petrol/cars

utilities/food

we have lived in two states in OZ, and it is not getting any easier.

private health insurance has gone up every year since its intro in 2000

the job situation in oz is not great either with many companies letting people go, in the hundreds and thousands......

no easy answers, I suppose you have to accept that Australia is very expensive to live in

wait till you see the price of a dozen eggs if soft drink got to you!! LOL (or as my sister said "wow a carton of beer here is crazy")

best of luck

cheers from down under

Haha! Yes, I still gawp at the prices we have here. It's crazy. My husband gawps if the shopping bill is over $150. I still think that's very cheap.

Surely it depends on where you want to move back to in Australia? Unfortunately Sydney and Melbourne have both just made it into a 'Top Ten Most Expensive Cities to Live in' (I was surprised Melbourne is included in that) but the strength of the Australian dollar is what is causing all the grief. In the US its really only New York City thats comparatively as expensive. I've moved from London and wouldn't be able to afford to live in NYC and probably San Francisco without a mortgage but everywhere else is incredibly affordable in comparison. I lived in Sydney for 3 year from 1999-2001 and real estate was the biggest issue, rent was ok but buying required a move out to at least the Inner West or North Shore. If you were willing to live in Perth or Newcastle or Adelaide or away from a big city I'm pretty sure cost of living is affordable just like any other country.

At the moment, it appears Broken Hill, or Outback towns are the equivelent in pricing. Houses are $80,000 - on par with over here. I agree. Housing is probably the biggest asset difference. Place my parents' $550,000 home in America (well, depending on the location), and it'd be worth maybe $100,000.

When I first moved to the US I was shocked at how expensive things seemed. That was back when the Australian dollar was half the US. Now they are about equal, when we visit Australia my husband is the one who is shocked at prices. But you can't compare prices directly. Some things are relatively cheaper in the US, some in Australia. Also wages are generally higher in Australia (though so are taxes). I would be earning twice as much in Australia for the same job I have in the US, plus i would be getting superannuation. Eating out is more expensive in Australia, but partly because wait staff in the US an be earning as little as $2.13 an hour plus tips, which is insanely low.

Buying a house is ridiculously expensive in Australia. Cars are more expensive (but they hold their value better). Rent is variable in both countries, depending on where you live.

Anyway, if you do end up returning, I think you'll find that once you get over the initial shock that you'll do OK. People tend to focus on things that are relatively more expensive and overlook what is cheaper.

Yeah, I think so, too (getting over the initial shock). I know others have done it before, and we won't be the first. Thanks for the great input.

I am currently living with my fiance in Australia and can tell you (coming from the US) everything is so damn expensive here lol... I think the easy ballpark figure is about 2x what I normally pay for items in the US, sometimes as much as 3-4x.

We share a house in Melb CBD with housemates simply because it was convenient to get to. I was lucky to get a job even before I landed ( I didn't think I was lucky at the time) but it seems like jobs are harder to get here.

You gotta take into consideration the population in the US is about 14x the population of AU and could lead to less demand and increased prices. We would buy things shipped from China to the US for less cost and faster timing than from China to AU even though AU is a lot closer to China.

If it makes things easier look at things in percentages and compare things within the local economy vs cross comparison. I've lived here for almost 2 years now and still find prices appalling when comparing between the two countries. That said, we've managed to save money here based on my full time work and her part time work. Quality of life does feel a little better in the sense that there are a lot of holidays over here ( like a whole month off for xmas lol).

If you need assistance to get off your feet there is always Centrelink. We just manage and budget within range and still enjoy going out. There are ways to get things from deals (like paying $10 for movies thru Optus vs $20 at the door)... I think if you go on expat forums it would be more helpful.

I'm still looking into this but I think as Americans working in AU there is a $97k exemption on taxes, of course conditions apply.

Hope this gives you another perspective

More great advice. Thank you. Mum worked for Centrelink, and said we'd probably qualify, just until we got on our feet.

Thanks all. Given me a lot to think about. I apologise for the neglect on this thread. I forget about this nook in the Internet, occasionally.