Do you know any one who has emigrated??

[SoulTax]

No you wouldn't actually. Tax thresholds there much higher than here

Ye, the UK actually taxes you less than SA, but then National Insurance tips the monthly deductions over the SA mark by a small amount.
So if I am paying 23 odd percent of my SA salary in pure tax to SARS. I will only pay about 18% of my UK salary to HMRS. But the NI contribution puts my total deductions up to around 25% of my gross. (Rough example)
For those not in the know. This is because the first £10 000 pounds that you earn per year, is non taxable. The sliding tax scale only starts after this point.

Then you have to think about how you feel about those monthly contributions. In SA I detest seeing those tax figures because I am disgruntled about what it gets spent on.
In the UK I might have a moan about a few things that could be done differently. But I don't look at the tax deductions on my payslip and think, "What the **** am I paying this for".

So there is that.

 

[zippy]

If that is what Sinbad said, then he is just plain wrong. The bond on a 200 000 pound house is only 900 pounds or so. Depending on your interest rate.

A £200k mortgage in the UK will cost between £1200 and £1500

Mortgage rates in the UK range from 2.8% to 3.98% depending on your deposit and how you choose to mix that with fixed and variable rates.

These are very low rates. This is why you cant really compare only the purchase price. You also need to factor in the affordability of the mortgage.

Yes. for the same price you cant getter bigger and better house in house in SA. Nobody is disputing that. But more of your take home pay goes to pay the loan off in SA than it does in the UK.

 

[zippy]

Ye, the UK actually taxes you less than SA, but then National Insurance tips the monthly deductions over the SA mark by a small amount.
So if I am paying 23 odd percent of my SA salary in pure tax to SARS. I will only pay about 18% of my UK salary to HMRS. But the NI contribution puts my total deductions up to around 25% of my gross. (Rough example)
For those not in the know. This is because the first £10 000 pounds that you earn per year, is non taxable. The sliding tax scale only starts after this point.

Then you have to think about how you feel about those monthly contributions. In SA I detest seeing those tax figures because I am disgruntled about what it gets spent on.
In the UK I might have a moan about a few things that could be done differently. But I don't look at the tax deductions on my payslip and think, "What the **** am I paying this for".

So there is that.

Another important thing to note is that you need to take into account medical aid in SA. NI covers this as well as a contribution to state pension. I have seen people paying some crazy amounts for medical aid in SA, and then they still have co -payments etc.

After my mortgage, bills, insurance, food, I still have around just under half my take home pay free to spend. In SA I had about a third of pay free every month.

 

[Saba'a]

A £200k mortgage in the UK will cost between £1200 and £1500

Mortgage rates in the UK range from 2.8% to 3.98% depending on your deposit and how you choose to mix that with fixed and variable rates.

These are very low rates. This is why you cant really compare only the purchase price. You also need to factor in the affordability of the mortgage.

Yes. for the same price you cant getter bigger and better house in house in SA. Nobody is disputing that. But more of your take home pay goes to pay the loan off in SA than it does in the UK.

Apart from house
1. Can one afford cleaning services?
2. How about childcare services?
3. Eating out at a Spur or top class restaurant?
These need to be factored as well. If a cinema worker can afford to travel then costs for above services beyond average person's means?

 

[chrisc]

Overseas (UK, US, Switzerland) is cheaper, unless: Labour or services are involved in the cost of the item. My daughter in Geneva employs a Greek woman to clean twice a week. She gets SFr 500 (R 6000) for the period she works. But she comes at 9.00am and works to 1.30pm and the whole house is spotless, the ironing is done, windows cleaned. This is twice a week

Our char in CT gets R3000 a month, comes at 10h30, has breakfast, reads the paper and leaves at 3.00pm. Maybe she has done the carpets and spent an hour ironing. No comparison at all

The food in the shops is better quality and is cheaper than SA

 

[SoulTax]

Apart from house
1. Can one afford cleaning services?
2. How about childcare services?
3. Eating out at a Spur or top class restaurant?
These need to be factored as well. If a cinema worker can afford to travel then costs for above services beyond average person's means?

Cleaning and Childcare is definitely more expensive in the UK. But then cleaning your own home is not such a major sacrifice. Takes my Wife and I around 3 hours on a weekend to clean the whole house and do the garden. That is a full on clean, not a wipe here and a wipe there. Which is what you get out of 95% of the "Cleaning Services" in SA.

Childcare is expensive, but you only pay childcare for the first few years of your child's life. If you factor in the zero cost of school fees and the 9 months worth of paid maternity leave, plus child benefits etc.... SA children cost far far more by the time they are 5 and it just keeps on escalating after that point.

Eating out? Sure no problem. My wife and I get take aways once per week and go out for a meal once on the weekend.

As has been mentioned. In the UK, you are left with more money after your bills are paid.

 

[SoulTax]

Another important thing to note is that you need to take into account medical aid in SA. NI covers this as well as a contribution to state pension. I have seen people paying some crazy amounts for medical aid in SA, and then they still have co -payments etc.

After my mortgage, bills, insurance, food, I still have around just under half my take home pay free to spend. In SA I had about a third of pay free every month.

Yep, totally agree. I had mentioned it in one of my earlier walls of text. Insurance/security/medical aid costs in SA should not be underestimated. You can easily drop R10 000 per month on that in a family of 4 living in a nice house, running 2+ cars.

Life insurance for instance. Costs like 7 or 8 pounds (R150) for £200 000 cover. The same "Value" of cover in SA (R3,500,000) Would cost around R3,200 or so.
Household contents is also pretty much the same.

 

[Dave]

UK decent university education expensive I believe? Some people love it but some dont. I guess its about your economic and social situation and how u like your weather

UK university is still free at the point of education. Effectively the government gives students a low interest loan to cover the fees and this only requires paying back when the student has graduated and in employment paying more than a certain salary (around £21k pa) and it is then taken as a %tage of salary above £21k. The loan is written off after 30 years whether or not it is repaid.

Explained by the BBC when it came in.

How will students pay the fees?

The government will lend students the money for fees, which will be paid back when they graduate and begin working. The fees will not have to be paid up-front.

The threshold at which graduates have to start paying their loans back will rise from £15,000 to £21,000. This will rise annually with inflation.

Each month graduates will pay back 9% of their income above that threshold.

The subsidised interest rate at which the repayments are made - currently 1.5% - will be raised. Under a "progressive tapering" system, the interest rate will rise from just inflation (RPI) for incomes of £21,000, to 3% plus inflation for incomes above £41,000. Interest of inflation plus 3% will be charged while the student is studying.

If the debt is not cleared 30 years after graduation, it will be cancelled.

 

[Willie Trombone]

Life insurance for instance. Costs like 7 or 8 pounds (R150) for £200 000 cover. The same "Value" of cover in SA (R3,500,000) Would cost around R3,200 or so.

Definitely not! Nobody would fork out that much for 3.5mil cover.

 

[Willie Trombone]

Our char in CT gets R3000 a month, comes at 10h30, has breakfast, reads the paper and leaves at 3.00pm. Maybe she has done the carpets and spent an hour ironing. No comparison at all

Well then help her out... get someone else. You're being ripped off.
Either that or pay her R6k and tell her to start and 9, finish at 1:30 and xyz needs to be done. I guarantee you she will spark for that kind of $

 

[Sinbad]

Definitely not! Nobody would fork out that much for 3.5mil cover.

I'm paying about R300pm for 1.5m cover.

 

[Willie Trombone]

I'm paying about R300pm for 1.5m cover.

About right...

 

[P924]

I'm paying about R300pm for 1.5m cover.

That depends a LOT on your age. If you are 38, that would be almost R3k (including disability and terminal illness), depending on the package as well, most basic, maybe R1200.

 

[Sinbad]

That depends a LOT on your age. If you are 38, that would be almost R3k (including disability and terminal illness), depending on the package as well, most basic, maybe R1200.

39 years old. R331.
01/10/2009 LIFE COVER 1549156.05 99/99/9999
01/10/2009 CAPITAL DISABILITY (OD) 1549156.05 01/10/2039

 

[P924]

39 years old. R331.
01/10/2009 LIFE COVER 1549156.05 99/99/9999
01/10/2009 CAPITAL DISABILITY (OD) 1549156.05 01/10/2039

That will be term insurance then?

Whole-life cover is much more expensive, otherwise I need a new broker.

Edit: I see the en date now. Please send me details via PM.

 

[Sinbad]

That will be term insurance then?

Whole-life cover is much more expensive, otherwise I need a new broker.

Edit: I see the en date now. Please send me details via PM.

You want my broker's contact details? ie, I'm getting a decent deal?

 

[SoulTax]

I'm paying about R300pm for 1.5m cover.

That is pretty good. I confess that I just did a quick google search, which found me a calculator. It only went up to R500 000 and was about R470 for that cover. Although that was for a 29 yr old, not a 39 year old and as P924 seems to have pointed out, you must be getting a damn good deal.

 

[bwana]

I guess when it comes to life insurance in SA sooner is better than later?

 

[Sinbad]

That is pretty good. I confess that I just did a quick google search, which found me a calculator. It only went up to R500 000 and was about R470 for that cover. Although that was for a 29 yr old, not a 39 year old and as P924 seems to have pointed out, you must be getting a damn good deal.

I have another policy as well. R4.3m life cover, R700k spouse life cover, 1.4m severe illness benefit, income continuation benefit, retirement contribution benefit. R1k per month. (but that's a work group life thing)

 

[SoulTax]

I have another policy as well. R4.3m life cover, R700k spouse life cover, 1.4m severe illness benefit, income continuation benefit, retirement contribution benefit. R1k per month. (but that's a work group life thing)

I am guessing that you might be getting a few people asking for your broker's details. Seems like you are getting a few good deals there.