Author Topic: Need help with a move to Melbourne  (Read 6500 times)

pritika

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Need help with a move to Melbourne
« on: February 25, 2016, 02:23:48 AM »
Hey guys,
This is my first post on this forum. I am a mustachian from India. I have recently received a job offer from an IT company based in Melbourne. The offer is 100K AUD(I calculated, and would getting a little over 5K in hand)
I will be moving with my husband and 2 year old on a 457 visa(temporary worker). My husband is an independent consultant who currently works from home and will continue to do so in Melbourne. We end up saving a lot since our house is paid for, and we live a very simple lifestyle with our only indulgence being travel. My husband has clients in the US and UK and so the currency exchange rate works in our favor as well.
He currently earns about 60-80K USD but will be earning a lesser once we move since he will be working part time and taking care of our daughter. I earn a lot lesser here.
I had a few questions.
On a combined base salary of 120-150K AUD, would we be able to live a decent lifestyle in Melbourne?
What is day care like in Melbourne?
I will have to get my own health insurance. How much would it cost?
Is it possible to live a car free lifestyle in the Melbourne area?
Finally, is it possible to live a mustachian lifestyle in Australia?
All of the above answers will really help us in making our decision. Thanks!

Wadiman

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Re: Need help with a move to Melbourne
« Reply #1 on: February 25, 2016, 03:08:19 AM »
I'll take a crack at some answers to your Questions Pritika although am Sydney-based.  I'm sure a few Melbournian's MMers will respond as well.

On a combined base salary of 120-150K AUD, would we be able to live a decent lifestyle in Melbourne?
A. Yes - depends how you define lifestyle and what proportion of your salaries you want to save

What is day care like in Melbourne?
A.  Pass - in Sydney it can be tough and it is quite expensive - we pay $120 a day although get an annual rebate - not sure if you would be eligible for this on a 457

I will have to get my own health insurance. How much would it cost?
A.  We pay roughly $170 a month for private health insurance.  Not sure about what costs you would be up for given the visa status 

Is it possible to live a car free lifestyle in the Melbourne area?
A.  Yes - if you are near a tram or train network.  Do you cycle or ride a motorbike?  Both are very popular commuting choices.

Finally, is it possible to live a mustachian lifestyle in Australia?
A.  yes - definitely - I would say it is an option almost anywhere.  I would be surprised if you can't save around 50 - 70% of your earnings.

Good luck with your decision!

deborah

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Re: Need help with a move to Melbourne
« Reply #2 on: February 25, 2016, 03:14:13 AM »
On a combined base salary of 120-150K AUD, would we be able to live a decent lifestyle in Melbourne?

Easily - this is well above average income - about twice, and if you can't live decently on that...

What is day care like in Melbourne?

Don't know - don't have kids.

I will have to get my own health insurance. How much would it cost?

I think this would be different to how much health insurance costs for Australians because ours pays for the extras above Medicare, so beware of any answers you get to this question.

Is it possible to live a car free lifestyle in the Melbourne area?

Yes, I did so for 20 years. You would need to make sure you are living close to public transport. What suburb is your job located in?

Finally, is it possible to live a mustachian lifestyle in Australia?

Yes - I retired early.

Melbourne is an enormous city (possibly even by Indian standards). It has over 4 million people according to google, but a lot of Melbourne housing is on quite big blocks, so the actual area taken up is much larger than it would be for a similar population in India. As a result, things like day care availability, whether you can live without a car... are not really good questions, because it depends upon WHERE in Melbourne you are looking at. The Economist regularly ranks it the most livable city in the world - it has been in top position for the last five years straight - see http://www.theage.com.au/victoria/melbourne-named-worlds-most-liveable-city-for-fifth-year-running-20150818-gj1he8.html

Melbourne, like much of Australia has quite a large Indian population - the Indian shops tend to be centred around Dandenong, but there are shops that sell Indian groceries in a number of shopping centres throughout Melbourne. It also has a large Indian student population.
« Last Edit: February 25, 2016, 03:18:46 AM by deborah »

alsoknownasDean

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Re: Need help with a move to Melbourne
« Reply #3 on: February 25, 2016, 04:35:27 AM »
Firstly, welcome :)

You'll have no trouble managing without a car if you're reasonably close to the city, but once you're further out of the city everything is further apart and the public transport may not be as good. I spent most of 2014 without a car, so it can be done.

Housing depends on what you're after, and where. As far as rent goes, this of course depends on whether you're after a house or apartment/unit, and what area you're in. A 2 bedroom unit is likely to set you back around $1500AUD a month, although it may be more if you're in the inner city (much of the inner city has been gentrified and is now more expensive), and less if you're in the outer suburbs. Houses are more still, but again it depends on the area (houses in the outer suburbs can be pretty cheap, but in the inner city they're very expensive).

Here's an site of one of the health insurers with information for people working here on a 457:

https://www.bupa.com.au/health-insurance/cover/overseas-visitors

Here's a health insurance comparison site that might be able to help with finding the right insurance rate:

http://www.iselect.com.au

And yeah, you should be able to do well on that salary, provided you're not paying huge amounts for rent or food (although daycare might be expensive, I have no experience with this). Electricity is expensive, and food can be as well (although it depends where you buy and what you buy).

Are there any sites catering to Indian expats in Australia?

Another thing is the exchange rate. $1AUD is currently about $0.71USD (and 49.4INR according to xe.com). That could change between when you arrive and when you leave :)
« Last Edit: February 25, 2016, 04:46:08 AM by alsoknownasDean »

urbanista

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Re: Need help with a move to Melbourne
« Reply #4 on: February 25, 2016, 05:10:50 AM »
Day care $100 - 130 per day, depending how close to the CBD the centre is. Temporary residents  are not eligible for gov. help.

$1500 rent is very cheap and will get you 2 bedroom unit in a not-so-nice but safe area with 1 hour train+car commute to the CBD. Anything with 30 minutes commute is about $1700-2000 depending on the size.

Health insurance for 457 visa is mandatory. Absolutely cheapest compliant insurance (hospital only, no dental ) is $100 per adult per month. Average cover will cost about $300 for 2 adults and a child.

Train monthly pass costs $140.

Groceries about $600 monthly if you cook all meals at home.

« Last Edit: February 25, 2016, 05:12:52 AM by urbanista »

urbanista

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Re: Need help with a move to Melbourne
« Reply #5 on: February 25, 2016, 05:16:12 AM »
And if you want to live without a car, you are going to pay much higher rent. Apartments within walking distance to public transport, day care and shops rents at a premium.

pritika

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Re: Need help with a move to Melbourne
« Reply #6 on: February 25, 2016, 05:42:11 AM »
Hmmm....seems like I end up paying a lot more for insurance and childcare if I am on 457.
And day care would be 2000 AUD minimum for a month....this is worrying. :)

pritika

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Re: Need help with a move to Melbourne
« Reply #7 on: February 25, 2016, 05:45:46 AM »
Another question, how open are Australian employers to negotiate salaries?
How it works in India is, they make you an offer(usually lesser than what they are prepared to offer), you get back to them with a counter offer, and then you negotiate and finalize a number somewhere in the middle.
Is that how it works in Australia as well?

alsoknownasDean

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Re: Need help with a move to Melbourne
« Reply #8 on: February 25, 2016, 05:54:21 AM »
$1500 rent is very cheap and will get you 2 bedroom unit in a not-so-nice but safe area with 1 hour train+car commute to the CBD. Anything with 30 minutes commute is about $1700-2000 depending on the size.

Depends on the area. You're probably right if you're talking about south-east, east or bayside, but north or west are a bit better value for money.

pritika

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Re: Need help with a move to Melbourne
« Reply #9 on: February 25, 2016, 08:45:30 AM »
Well, chances are I will be working in the Melbourne CBD(not sure exactly where since the firm has various clients and consultant work in their offices).
When I look at apartments near CBD then a 2 bedroom is 2000AUD+.
Apartments in the suburb are a lot cheaper but it looks like you would need a car commute if you live away from the city. Am I missing something here?

Melbourne is an enormous city (possibly even by Indian standards). It has over 4 million people according to google, but a lot of Melbourne housing is on quite big blocks, so the actual area taken up is much larger than it would be for a similar population in India. As a result, things like day care availability, whether you can live without a car... are not really good questions, because it depends upon WHERE in Melbourne you are looking at. The Economist regularly ranks it the most livable city in the world - it has been in top position for the last five years straight - see http://www.theage.com.au/victoria/melbourne-named-worlds-most-liveable-city-for-fifth-year-running-20150818-gj1he8.html

Melbourne, like much of Australia has quite a large Indian population - the Indian shops tend to be centred around Dandenong, but there are shops that sell Indian groceries in a number of shopping centres throughout Melbourne. It also has a large Indian student population.

urbanista

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Re: Need help with a move to Melbourne
« Reply #10 on: February 25, 2016, 02:06:33 PM »
$1500 rent is very cheap and will get you 2 bedroom unit in a not-so-nice but safe area with 1 hour train+car commute to the CBD. Anything with 30 minutes commute is about $1700-2000 depending on the size.

Depends on the area. You're probably right if you're talking about south-east, east or bayside, but north or west are a bit better value for money.
Not really. I am in the North East, all friends and family live North and West. $350 a week is the standard renting rate for a 2 bedroom small unit that comes with 50minutes commute to the CBD. it is also hard to get a nice place being an immigrant on temporary visa. Competition is high.

deborah

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Re: Need help with a move to Melbourne
« Reply #11 on: February 25, 2016, 02:12:29 PM »
Most people use the train to go to work in the CBD (or ride bicycles - there is a network of bicycle paths, depending on where you live). As a lot of jobs are in the CBD, most public transport goes there from most suburbs. Footscray is cheap for an inner suburb, has really good connections to the CBD (train, tram) and has a vibrant ethnic community (so you should be able to get the spices and other things that make life more easy for someone living away from home) with cheap housing. Camberwell is a public transport hub, but expensive. Box Hill is another transport hub, a bit further out, and less expensive (but I think Footscray would be cheaper, and it is the closest). It really depends upon where you want to live - and what sort of vibe - similar to any big city. The western suburbs (the disadvantaged west - which tends to be cheapest) tend to have less than the eastern suburbs which tend to be nicer but a lot more expensive. The northern suburbs are less expensive than the south. But this is on average. Have a look at the houses for sale in various locations on one of the internet sites and you should get a reasonable idea of where you want to live.

The link I gave you has a link to a list of the best suburbs in Melbourne to live (the most livable) - it isn't my list, but it is reasonable.

urbanista

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Re: Need help with a move to Melbourne
« Reply #12 on: February 25, 2016, 02:51:46 PM »
Well, chances are I will be working in the Melbourne CBD(not sure exactly where since the firm has various clients and consultant work in their offices).
When I look at apartments near CBD then a 2 bedroom is 2000AUD+.
Apartments in the suburb are a lot cheaper but it looks like you would need a car commute if you live away from the city. Am I missing something here?

Young families usually do not live in the CBD because of child care. It is significantly more expensive and the waiting lists are long. Also, apartments tend to be small (at least those that rent for $500 a week) and on busy roads.

Current child care prices per day:
CBD $140-150
Preston $100
Derrimut $95
Greensborough $98

It is possible to live with no car in the suburbs. You need to rent within 1 km walk to the train station, child care and shops though. You would have to compromise on quality or pay more rent. My friends live in Reservoir in a small 2-bedroom unit (1 storey group of units), it has a small backyard which is great when you have a little child, $340 a week. Train stations and the shops are 5 min walk, parks are nearby and child care is not an issue. It is about 45 min to the CBD door-to-door.

When you rent, pick places with **ducted heating**. Otherwise, winters are really cold.

urbanista

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Re: Need help with a move to Melbourne
« Reply #13 on: February 25, 2016, 02:56:05 PM »
Box Hill is another transport hub, a bit further out, and less expensive

Box Hill is quite expensive and have traditional Chinese culture.

deborah

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Re: Need help with a move to Melbourne
« Reply #14 on: February 25, 2016, 03:22:47 PM »
Box Hill is another transport hub, a bit further out, and less expensive

Box Hill is quite expensive and have traditional Chinese culture.
Less expensive than Camberwell

urbanista

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Re: Need help with a move to Melbourne
« Reply #15 on: February 25, 2016, 04:17:52 PM »
Box Hill is another transport hub, a bit further out, and less expensive

Box Hill is quite expensive and have traditional Chinese culture.
Less expensive than Camberwell

True :)

pritika

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Re: Need help with a move to Melbourne
« Reply #16 on: February 25, 2016, 10:38:09 PM »
Woah! Thanks!
So looks like I need to look for houses in affordable suburbs close to train stations. Got it.
Any recommendations on suburbs within a 30 minute train ride from CBD?

Young families usually do not live in the CBD because of child care. It is significantly more expensive and the waiting lists are long. Also, apartments tend to be small (at least those that rent for $500 a week) and on busy roads.

Current child care prices per day:
CBD $140-150
Preston $100
Derrimut $95
Greensborough $98

It is possible to live with no car in the suburbs. You need to rent within 1 km walk to the train station, child care and shops though. You would have to compromise on quality or pay more rent. My friends live in Reservoir in a small 2-bedroom unit (1 storey group of units), it has a small backyard which is great when you have a little child, $340 a week. Train stations and the shops are 5 min walk, parks are nearby and child care is not an issue. It is about 45 min to the CBD door-to-door.

When you rent, pick places with **ducted heating**. Otherwise, winters are really cold.

urbanista

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Re: Need help with a move to Melbourne
« Reply #17 on: February 26, 2016, 05:02:02 AM »
You want 30 minutes door-to-door commute? Hey, that's a luxury, I can't afford that :)

Or you meant within 30 minutes train ride (plus 10 minutes walk to/from the station)?

Preston and Reservoir would be my preference if you don't want to get a car. Lots of transport and shopping.

alsoknownasDean

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Re: Need help with a move to Melbourne
« Reply #18 on: February 28, 2016, 06:02:31 AM »
Are you after an apartment/unit or a house?

Here's a list of how all of the suburbs are ranked:

http://www.domain.com.au/news/melbournes-321-suburbs-ranked-for-liveability-20151106-gkq447/

Generally within 10km of the city you should do fine without a car. Suburbs to the east and south-east are generally more expensive (and prestigious) than north or west.

From my experience, I'd probably avoid anything on the Frankston train line, as my experience was that the train line wasn't as reliable as others I'd used. Although there's some major upgrades going on along that line so it might be better later on.
« Last Edit: February 28, 2016, 06:10:09 AM by alsoknownasDean »

givemesunshine

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Re: Need help with a move to Melbourne
« Reply #19 on: February 28, 2016, 05:22:58 PM »
Good link to compare Health Insurance Plans for 457 holders - https://www.457visacompared.com.au/457-visa-health-insurance/family/

Can be as cheap as $150 per month. Remember, this will not cover you for standard Doctor (GP) visits (for flu, child sickness etc.) and you will pay out of pocket for this (which may be $50 or even $100 per visit plus prescription costs if necessary).

I think you will be fine on just your wage if you are careful and spend sensibly (which it sound like you do). Make use of markets for fruit and veg - usually cheaper and much better quality than supermarkets.

Best of luck.

pritika

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Re: Need help with a move to Melbourne
« Reply #20 on: February 28, 2016, 10:24:04 PM »
Thanks for the link ziny1. I am totally fine with paying for the best possible health plan since I would feel safer that way given we have a 2 year old.
I don't mind an apartment or a house, but I am willing to compromise on size, as long as the location is good. We currently live in a medium sized 2 bedroom apartment so it wont be a huge shift for us. For me it is more important that I am close to the grocery store, coffee shops,parks and schools/day cares....and a short commute from work of course.
Are you after an apartment/unit or a house?

Here's a list of how all of the suburbs are ranked:

http://www.domain.com.au/news/melbournes-321-suburbs-ranked-for-liveability-20151106-gkq447/

Generally within 10km of the city you should do fine without a car. Suburbs to the east and south-east are generally more expensive (and prestigious) than north or west.



Could you recommend any suburbs?


deborah

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Re: Need help with a move to Melbourne
« Reply #21 on: February 28, 2016, 11:45:42 PM »
Footscray was my recommendation, it seems to fit. Look at places there and see if it is anything like what you want. And THEN ask for more suburb recommendations.

You have also been recommended Reservoir.

But you haven't responded about your feelings about EITHER recommendation.

pritika

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Re: Need help with a move to Melbourne
« Reply #22 on: February 29, 2016, 12:07:32 AM »
Reservoir looks really nice, so does Preston, but I was hoping for something a little close to the city if possible.
To me south east seems like it would be a better fit.

pritika

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Re: Need help with a move to Melbourne
« Reply #23 on: February 29, 2016, 12:18:57 AM »
Btw, thanks so much for the Footscray recommendation Deborah! It is exactly what I was looking for and found loads of places in my price range.
Footscray was my recommendation, it seems to fit. Look at places there and see if it is anything like what you want. And THEN ask for more suburb recommendations.

You have also been recommended Reservoir.

But you haven't responded about your feelings about EITHER recommendation.

alsoknownasDean

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Re: Need help with a move to Melbourne
« Reply #24 on: February 29, 2016, 12:56:34 AM »
Closer in suburbs worth looking at would be Brunswick, Fitzroy/Fitzroy North or Northcote (north), Kew, Richmond or Hawthorn (east), South Yarra, Prahran, St. Kilda or Elwood (south-east), Ascot Vale, Essendon, North Melbourne or Kensington (north-west) and Footscray or Yarraville (west).

South Yarra is probably the most expensive of those (followed by Kew, Prahran or Hawthorn probably), Footscray probably the cheapest.

Some of the closer in suburbs have older public housing towers, which often have a bad reputation, yet they're right near houses selling for a million bucks. A lot of the inner suburbs had a pretty bad reputation a couple of decades ago, but have improved with gentrification.
« Last Edit: February 29, 2016, 12:58:38 AM by alsoknownasDean »

urbanista

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Re: Need help with a move to Melbourne
« Reply #25 on: February 29, 2016, 05:21:04 AM »
Cost of child care in all inner suburbs is the same as CBD, that is $140 per day. Rent is also much more than $350 a week. Except Footscray, it is still cheap.

Unfortunately, in Melbourne you pay dearly for the privilege of a short commute.