Salary vs Living Expenses

[Botchan]

I have come across an opportunity to relocate with my family from the UK to Singapore. The job is a positive step up in terms of career progression and would give me valuable experience for the future. However, the salary on offer when converted to GB £ is lower than what I am on now and so the question that I would like to pose to you is would an annual salary of S$70000 be considered sufficient to support Myself, my wife and our 2 year old son? we have very modest needs but at the same time do not want to move half way around the world to find ourselves on the 'breadline'.

[peeps]

$70pa is about $5K a month after taxes. It's possible, but frankly I wouldn't do it, not with 2 kids. Rent will eat up a third of your pay, with 2 kids you'll need a car. Unless your wife can get a job, it's going to be almost impossible to maintain the life you know. Unless you can go totally local in terms of your shopping/eating/leisure habits.

[peeps]

Oops - just realised you said 2 yr old child, not that you have 2 kids.

That makes it a litlle better, but it really depends on your current lifestyle in the UK.

[Hard]

Sorry to be negative but you will find it hard on that salary. The housing and renting situation has gone crazy here in recent months with large numbers of people coming in or moving due to en bloc sales etc. Rent will take up a lot of your money. If you can get you company to provide housing then that's another story and your salary will be fine.

[3rd opinion]

Gonna have to agree with the above, dude.

Rent will eat up maybe 2.5 or 3K (S$) per month for a decent place.  

Sure, you could do it and not starve, but you would have to closely watch expenses, limit fine dining, limit drinking, etc.

Unless the experience will bring you a definite big payout in the future, I wouldn't do it.

If you were a single guy, I would say go for it.  But with a wife and a kid, no.  Unless you can get housing covered.

[peeps]

Yeah, you can do it - but with no savings at the end of the month, I'm not sure what's the point of toughing it out with nothing to show for.

[absolutely agree]

with everything being said. I think it would be very realistic to expect housing at the very least to be offered.

From what you are saying the only takeaway would be the experience and for all that you would give up in my mind it would definitely not be worth it.

[it is not]

enough.
As well as housing, you need to consider medical insurance and in a couple of years time school fees.
If they agree to cover housing and medical it is do-able, if there is a pay off in terms of career progression.

[Botchan]

Thanks for the response. I guess it was kind of what I expected but good to hear the opinions of others. I am waiting to hear if the 'package' can be improved but suspect they will be able to find someone cheaper.

2 inches of snow this morning in my garden... now would I miss that or not?

[@Botchan]

Yes hosuing prices have risen, but don't believe all the balonry that rents are min of 2.5 k. There are lots of 3 bedroom HDB apartments available for 1.5-2k. You can also find a few 2BR condos for around 1.8k.

[malcontent]

Look, there are a lot of expats here who are not on packages and survive just fine on that kind of money. However, it is usually because they want to be here and not because the company wants them to be here. In your circumstances, your company is not doing you right, and therefore I doubt the overseas experience would be useful in your present company given how they are treating you now.

Still, it is certainly possible to survive on $5,000/mo. You can rent a 1000sq ft, 2 bedroom condo with a pool and everything for under S$1500/mo in areas like Upper Bukit Timah, and you can also swing a small economy car for around S$1,000/mo. including everything. The price of everything else is very reasonable provided you don't drink or smoke and don't mind eating mostly local food.

[humptyhump]

It would more likely be $5500 after tax each month. Does the company pay a 13th month bonus annually? A lot of firms here do and that alone would more than cover your tax bill leaving you the $5880 per month and some left from the bonus. If it isnt your company's policy ask for it anyway. They can only say no.

[Botchan]

Some really useful stuff being said here. Just to clarify, this is not with my current company but a new opportunity with another company.

[tammyf]

It all boils down to ONE critical issue - housing included? Yes or no? If yes, you'll be fine. If no, do your sums.

[Lester25]

You wont be on the breadline on that wage (by local standards) but you need to think carefully about it. Altho a 1000 sq ft place might only be S$1500 p/m, that is really tiny (10m x 10m) - would your wife be happy to live in that with a 2-year old? Without a car she would have to rely on taxis much of the time to get anywhere. I suspect that unless she absolutely knows what she is in for, she might become very unhappy very quickly, stuck in  very small apartment and having to watch the pennies.
Then when the kid is a bit older you will have the costs of childcare and eventually school fees, and by that point unless your wife gets a job or u get a good raise, the pennies will become very tight.
So think very carefully about this, its doable but only with the right attitude from both of you.