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Australia:The
Price of Adventure
By Michael
A. Kozlowski
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.May
2006
| There
are a myriad of things to consider when weighing the opportunity to move
to another country, not least how easily can you return if things don’t
work out?
How will this
move affect your family, those that are going with you. Will this
experience be beneficial to your career?These are all questions to ponder,
but perhaps the greatest deciding factor is a financial one. What
is all of this going to cost?
When
my family and I decided to undertake a move to Australia we found that,
while we thought we had researched the costs pretty effectively, we were
woefully unprepared.
Let’s assume
you have decided to move to the great “Down Under” or are at least seriously
contemplating the matter. What should you do first?
We’ll hope
that you have negotiated a reasonable sum for moving expenses. This
can be a very expensive process and, as we move along, I will get into
the particulars. For the moment, suffice it to say that when my wife, Laurie,
and I packed up our two young sons, in early 2004, the total bill came
to something like $25,000 USD. My original contract had called for
$20,000 Australian dollars (A$) to be allocated for moving expenses (roughly
$15,000 USD). This was changed to cover “all reasonable expenses”.
However, if you and your employer have not discussed what would be included
in that broad phrase, a set sum might be wiser. I ran into a situation
where some of the monies I was looking to have reimbursed became a source
of debate.
Just a few
of the major items to consider are a reconnaissance visit, the cost of
moving your household goods to the other side of the globe, accommodations
and a rental vehicle while you get settled, plane tickets, and the basic
necessities you will require while you wait for your goods to arrive (which
will invariably take at least a month longer than you will be told by the
moving company).
Our first move
was a checking it out visit-this was particularly important to keep my
wife interested in the idea. When I first approached Laurie about
the subject her initial reaction was something along the lines of “I don’t
think so” but with a lot more expletives. She pictured us living
in a grass hut, in the middle of nowhere, fending off hostile natives and
hungry dingoes. Where would she be able to get craft supplies?
What would we be eating?
Needless to
say, my wife doesn’t get out a lot. Apparently, she was basing her
opinion of Australia on a few Discovery Channel documentaries.
We were put
in touch with a lovely lady by the name of Tracey Miller, to help us relocate.
Tracey was invaluable as an agent and I would recommend her services without
a moment’s hesitation. Miller Property Consulting is located in Lake
Munmorah, New South Wales. This is about an hour and a half north
of Sydney in an area known as the Central Coast. I am reasonably
sure that Tracey would be willing to assist anyone in the greater Sydney
area, but as it happened, we were relocating to the Central Coast, so things
were just hunky dory with that. I would definitely say that
a relocation agent is a must. Tracey’s fee was fairly modest (especially
for all that she did), A$1425.
We scheduled
a visit to Australia for April and forwarded our itinerary to Tracey.
It would be just the wife and I on this visit. ane tickets were roughly
$1300 each, roundtrip from Detroit. When you place the order for
your tickets the airline should ensure that you have the proper Visa to
enter Australia. This is free of charge for a Visitors Visa, and
you won’t get into the country without it. It takes the ticket agent
about two minutes to process it and there is nothing for you to put in
your passport or show to immigration officials. It will be in “the
system” and available for the Australian agent to pull it up on computer.
We opted
for a very nice hotel, Hilton on the Park, in Sydney and arranged for a
rental car to be available at the airport. Excluding meals, souvenirs,
and standard tourists costs (museums, shows, etc) the trip, all up, was
about $4500 USD. So far that brings us to a grand total of about
$5600 USD (including Tracey’s fee).
In our case,
we were already 90% sure that we were relocating, so we weren’t too worried
about seeing the sights. We knew we would have some time to do that
once we moved and then we could share it with the boys. We planned to spend
a few days seeing Sydney and a few days exploring the Central Coast and
checking out houses. We also wanted to wander through some of the
department and grocery stores, to do some price comparisons. We needed
to get a feel for the money we would be spending on basic items, like groceries,
and also what kind of money we would need to set up house.
Australia runs
on 240 volts and 50 hertz, as opposed to the U.S., which runs 110 volts
and 60 hertz. Essentially, this means all appliances, lamps, audio/video
equipment and pretty much anything else you can plug in, will be absolutely
useless to you if you bring it from America, or you will have to invest
in expensive converters. Some of the small stuff will work with a
basic adapter but you never know. In fact, some items can be down
right dangerous. Unless a particular item states that it runs at
50 or 60 hertz (as some do), you’re best off just leaving it at home.
Laurie had an interesting moment in the hotel when she tried to use her
hair straightener. It started out okay, but as it warmed up we began
to notice an unusual smell followed by some very alarming crackling noises.
She opted to unplug it and throw her hair in a ponytail for the remainder
of the trip, rather than risk burning down a five star establishment.
Due to the
fact that our electrical goods were useless in Australia, we would be required
to purchase phones, a microwave, a washer, dryer and a refrigerator. A
great number of people don’t use dryers, due to the temperate climate,
and hang their clothes to dry, instead. Laurie was having none of
that. The appliances would set us back about $1300 USD. That
brought
our tally to $6900.
We were fortunate
enough to actually secure a home during our reconnaissance visit.
It only took about 14 viewings and two days of negotiations. The house
we had organized to rent was going to cost us A$350.00 per week (almost
all rents are paid weekly, rather than monthly). This is toward the
higher end of the scale. For one, Sydney is the most expensive area
to live in the country, with Melbourne a close second. enerally speaking,
I would say you could expect to get a pretty nice place for between $200
and $300 per week, depending on the room you need. Our house had
four bedrooms (one to use as a spare for guests) and an in-ground saltwater
pool. All up, there were three bathrooms. If you were to sell the
house, it would go for about A$450,000. This is pretty dear for a
middle class suburb, but probably not as much as you would expect to pay
for something in a similar neighborhood in California. Of course,
coming from Michigan, you might expect the home to go for $250,000USD.
Our initial
trip was pretty successful - we had accomplished everything we wanted to
and more. Now we had to head back to the U.S. and prepare for the
move.
Procuring a
moving company can be a bit of a pain. I found a list of International
movers on the web, and picked half a dozen to get quotes from. Besides
telling them where you are moving from and to, they will also request a
list of the items you are moving. This will help determine the size
and/or number of containers you need. Basically, you can get a 20
foot or 40 foot container. The price difference isn’t very much,
so if you are close on the 20-footer, I would suggest the 40.
The more complete the list you give them, the more accurate the quote.
It’s best to have a representative come out and do an assessment of the
goods you are taking and it’s wise to make sure that general packing material
is included in your quote. You will also get charged based on how
many flights of stairs the movers have to traverse, how many special boxes
they use (for packing mirrors and the like) and how far they have to park
the truck from your front door. You can save a fair amount by doing
most the packing yourself, but even if they tell you that the packing materials
are included, you can expect a few miscellaneous charges. -
Article
Continued Below - |
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It is common knowledge that Hong Kong is exotic, an excellent business
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- Continued
From Above -
You also have
to pay to insure your goods. This covers everything in case of damage
or loss, but if you are going to make a claim, you only have about a week
to do it, once you take delivery of your goods at your destination. Your
insurance cost is based on a percentage (3-4%) of what you say your stuff
is worth. I suggest that you claim an amount that will allow you
to replace your major items, in case the boat sinks, and leave it at that.
Otherwise, you pay way too much. You also pay a higher rate for things
that you pack yourself, unless the movers sign off that they have checked
it all. You
have to make special note of items made of wood and if you are shipping
yard equipment, you must give it a thorough cleaning to remove all soil.
Australia has some of the strictest importation laws around. This
is a country that is serious about keeping bad things out, like rabies
and foreign pests, parasites and skinny Americans with Polish last names.
If you bring a pet with you, it will be subject to six months quarantine.
We received a wide range of quotes for the move and settled somewhere in
the middle. All up, the cost was about $8,000USD.
I would also
suggest that you schedule removal as early as possible. It is far
easier to borrow something you’ve accidentally packed, from a friend, while
you are still in your comfort zone, than it is when you have just plopped
your butt on the other side of the globe, where you hardly know a soul.
Also, you will be told that it takes about two months to get things door
to door. Ours took three months.
Most companies
will offer a month of free storage, as well, so if your stuff gets there
a little before you do it’s not a big deal. It is very inconvenient
to move into a house with nothing but a few suitcases and to be waiting
for the rest of your stuff, believe me. For the first month in Australia,
we had half a dozen changes of clothes each. We bought two futons when
we arrived to sleep on (and sheets, blankets and pillows). The television
we purchased was sitting on the floor, and we were eating off of paper
plates (on a table we borrowed from a neighbor) with plastic utensils and
cups. I can’t emphasize enough that you should ship your stuff earlier
than you think you need to (and a week earlier than that, for good measure).
Now that I
have given you all that information about moving your stuff, I suggest
you don’t do it unless you are planning a lengthy stay. By lengthy,
I mean a few years or more. ou would be much better off to either
sell your things or put them in storage and negotiate a sum with your employer
to set up house. Most employers would likely be happy to offer an
amount equivalent to what the cost of shipping the goods would be.
So far our
total cost for getting set up in Australia had reached $14,900.
About
this time, we were finalizing our papers to apply for our Visas, so that
we would be allowed to stay in the country for longer than 3 months.
These are different from the Visitor Visas that I mentioned earlier.
There are a number of different Visa sub-classes, and depending on your
situation, you will be informed which one to apply for. For instance there
is the Business Visa 457, which allows you to work and live in Australia,
for up to four years, and to pay taxes, but you are classified as a temporary
resident. As such, you are not covered by Medicare (Australia has
a social medical coverage, like Canada), your children can’t attend school
unless you fork over a hefty fee ($4000 per year) and you aren’t entitled
to certain tax benefits. There is also the RSMS Visa 857, which classifies
you as a permanent resident, with all the benefits of a citizen.
This Visa is good for five years and allows you to apply for citizenship
after two years in the country, 12 months of which has to fall within the
previous two years of the time you apply. A requirement of this visa
is for you to be sponsored by a company, and for that company to show that
they have a need for you due to a lack of people in the area, that can
fulfill your job.
There are various
other visas that you can apply for based on your skills and/or reasons
for moving to Australia. Many require that you also prove your qualifications
to a division of Government known as Trades Recognition Australia (this
applies to the 857, also). The costs may vary a bit from visa to
visa, but for us (applying for the 857) the total was A$2375 (About $1850
USD). This included the TRA fee for trade recognition. In any
case, you have to go through piles of paperwork to get your visa approved.
The process was so long, that we actually migrated on the 457 Visa (which
was easier to secure) and transferred to the 857 after we were in Australia
(which meant re-submitting all the same stuff, so keep your originals).
It took us 6 months to get on the right Visa. In the meantime we had to
make sure that the company was willing to pay for private medical coverage
and the boy’s school fees. You, and all of your family travelling
with you, will have to send certified copies of birth certificates, marriage
license, each page of your passports, chest x-rays (for everyone over 16),
medical exams, contract of employment, FBI clearances, copies of your resume,
letters from previous employers, and who knows what else that I can’t recall
at the moment.
Getting all
of these documents together is no easy task. There are doctor appointments
to make, fingerprinting necessary, fees for notarizing, the cost of running
off copies of all this crap and a ton of postage. Conservatively,
I would estimate another $500 to get it all done.
So now we
have reached a total cost of $17,250.
Finally, you
can add in another batch of plane tickets (for our foursome that came to,
roughly, another $4000) and a rental car for your first week or two in
your new homeland while you are organizing your own vehicles. I’d
figure another $1000 for that.
In total, just
to get ready to start living in Australia you can expect to spend in excess
of $22,000. It is quite a financial burden to consider and you should
recognize that most of these costs will be similar if you decide to move
back. We haven’t even discussed the general cost of living.
Moving to another country is certainly an expensive proposition.
For me, the experience was worth it, but it is definitely something you
need to factor in to your overall decision making process.
.
.
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It is common knowledge that Hong Kong is exotic, an excellent business
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on moving to and living in Hong Kong - written by someone who has done
exactly that. In the process, he learned what it takes to live and be happy
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