Lifestyle in London on this salary ?

[Nomad2]

I have been offered a 2 year contract by my old boss at IBM @$600 sterling a day. Interested in some suggestions on locations to live and likely lifestyle.

I am Australian, mid 30's, 3 kids (5yr, 3yr & 1 yr old and eldest two at Tanglin), live in a 5 bedroom house in Singapore, car, maid holidays etc and earn $240k SGD a year in IT.

This would likely be our last expat posting before going home to Australia. So I thought   we could spend 2 years seeing Europe (and working).

Realise the weather will be dreary for the kids etc, but can we afford (need):

* Where is a nice, upmarket, but out of London suburb with good schools and within 45 min on the tube ?
* Other unexpected major living costs ?

Any tips from foreigners who have lived in England ?

[Indianlady]

We were in London for over 8 years- its an amazing city and highly recommended for one last expat posting. But its a horrendously expensive city too. I assume the Stg 600 per day will equate to approx 13,000 pm (working days), which is a generous package by UK standards.

I would advise you to live in London as that is half the pleasure of moving to the city. Enjoy the theatre, the parks, the myriad cultural activities, restaurants- really it is a cosmopolitan city like no other. Then, there will be the opportunity to travel and see Europe at leisure which is another huge bonus.

Im not sure if you want to send the kids to independent (pvt) or state schools. Ours were at independent schools where we were very pleased with the quality of education. The education at tanglin ( where my kids study too) is a notch above most state schools but definitely of a lower quality than some of the private schools in London. For the next few years, you will only need to fund a couple of your kids anyway.

The other point is that if you have a maid who has worked with you for over a year, you can legitimately take her to the UK with you. It will transform your life with 3 small kids and give you the freedom to enjoy London.

There are several  family friendly areas in London like Hampstead garden Suburb, Wimbledon, Kew, Chiswick where the city is accessible but you can get your open green spaces too- all these would be a 20-25 minute drive into Central London. You would pay Stg 600-800 per week for a 4-5 bedroomed house. Schools would cost you approx Stg 600-700 per month per child. Cars are much cheaper than Singapore. You would need to up your maids wages and pay her at least Stg 600-700 per month.

My suggestion- go for it- youll have a great time

[Review it]

If you are earning 240k here, I am assuming they are paying for the house and the kids education,maid etc as well as other benefits, otherwise the 5 bedroom house and the education would easily take up the salary.

And if so, are they intending to do the same in the UK. If not, expect a drop in lifestyle. Not that 600 sterling a day doesn't equate to a good salary, but it wont stretch to private education , a maid and a 5 bedroom house in an upmarket suburb. It would mean a comfortable lifestyle, but not lavish.

"Indian lady" has given you some excellent advice, we lived in Chiswick and Richmond for a while, but then moved closer to the city centre, and although our rent went up a lot, we offset that against travel costs, and the accessibilty to the London attractions.

But London definately is a drain on ones income, and on that money, if you expect to maintain the same lifestyle at all, dont expect to save anything.

[TaxMan]

Most importantly, you have not factored in the real disposable income you are see in your bank account after a 40% tax reduction.

If I remember correctly, rent for a 3 bedroom house costs just about GBP1500.

Damn expensive city.  

[St. John's Wood]

Another nice place that is a bit "out of London" would be Surrey.
But there are nice areas also in London with sizeable houses; St. John's Wood, Regent's Park, Swiss Cottage.

Careerwise I will not hesitate 1 minute to opt for London.
At the salary you are being offered, you will have a very comfortable life there.

Stay in Singapore and grow mold!

[SLIM JIMBO]

Richmond, Wimbledon Village, Esher are all good out of town locations, about 30mins on train into Waterloo. Alternatively head north west of London towards south buckinghamshire, to Gerrards Cross, Beaconsfield, Amersham area - again 30-45mins by train. Plenty of schools around, private or state. Buckinghamshire still has the old Grammar School system, I went through it 20 years ago. Have family still living in these areas. Should get you a pretty reasonable lifestyle on that kind of money, better still if you an work in some of the other benefits on top of the daily rate. Keep us posted!

[Indianlady]

St Johns Wood/ Swiss cottage etc are fantastic but you wont get a house on that package- youd be lucky to get a 3/4 bedroom apartment. If you dont mond that, go for that area. We lived there for 5 years and it was fantastic. there are excellent schools that are walking distance, hampstead Heath is amazing and the Westend with all its restaurants and theatres etc are a reasonable short drive or a longish walk away!

[Londoner.]

To give you an idea of rents.  We own an apartment in East Finchley.  East Finchley is the next tube station out from Highgate which is similar to Hampstead.  It's not nearly so upmarket as Hampstead but is quite sought after and popular with those who can't afford Highgate and Hampstead.  Our flat is nice but not smart or flashy - walkup, Edwardian.  It only has two bedrooms and is rented out at 1000 pounds per month.    You would need to pay A LOT more than this for a house in a really smart area of London like Highgate Hampstead or St John's Wood.

[anon]

Hi Nomad2,

At £600/day, this will work out to be in c.£150k p.a.  about twice your current renumeration in S'pore!!

With this level of salary, you could get a good place around the outskirts (approx. 45mins train/tube commuting to London).  Try looking around Amerham, Gerard Cross and Chalfont St. Giles areas in Buckinghamshire.  Very nice areas with good schools, both public and private.  You also get to enjoy both the countryside and also within good distance of the major motorways (M25, M1, M4 and M40), London and Heathrow airport.

Things to bear in mind is that taxation in the UK is much higher than S'pore.  Any income above c.£36k will be taxed at 40% plus 10% for National Insurance.
Below that there are 2 tiers @ 22% and 10%.

Private education for each child costs approx. £8-10k per year.

Cars are a lot cheaper than S'pore for sure and no need to apply for a permit before buying a car!

Good luck and all the best.

[TaxMan]

great lifesyle BUT no savings.  This is a fact.

[my old neighbourhood]

Have a look at the Harpenden /St Albans areas of Hertfordshire. Harpenden has good state schools (free), Mums & toddlers and playgroups, a good park and sports centre, nice community feel with lots of kids activities and is 35 minutes to London by train (into Kings Cross Thameslink). We loved it there when our 3 children were pre-school and primary age. St Albans, Hemel Hempstead and Welwyn Garden City are all close for major shopping and cinemas, theatre and so on if you don't want to go into London.

[Londoner.]

Harpenden is REALLY naff.  St Albans is nice but no cheaper than London Suburbs and quite a way out.

[Olly]

Harpenden?

Saints preserve us...

[my old neighbourhood]

Well as a foreigner working in London and with 3 small children similar ages to the OP, we enjoyed our posting there. The commuting was fast, often quicker than colleagues coming to the City from south or west London, housing was good, neighbours were friendly and the countyside was on our doorstep. The local primary school was as good as or sometimes better than  the international schools our kids subsequently attended although classes were a bit larger. With 3 under 5s we weren't looking for a great nightlife scene.  Luton airport is close by for budget flights around Europe. Did all the sightseeing stuff in London as well. But to each his own.

[tax]

I assume that because you are quoting a per day rate and you did say contract, then you won't be on the company's books for PAYE.  Therefore, there are a lot of very easy and totally legal ways around paying 40% TAX.  E.g. register an offshore company in a tax haven such as Jersey - you will be classed as a foreign domicilary anyway so you can get your tax bill way down.  Talk to an expert - I would be surprised if the company did not have someone to help on this but a tax expert will help you get that bill way down and this will equate to a better standard of living.

And for my vote, Chiswick and the surrounding areas.  Fantastic schools, very close to the westend with great tube and bus connections.  Also, Chsiwick is just full of young families now (one of the main reasons we left!!) and this equates to fantistic facilities and groups for kids and mothers.  I am sure a lot of the other areas are similar but this is the only one I have lived in with young children.