Layout:
Home > New financial focus begins to take shape (but first, fitness results)

New financial focus begins to take shape (but first, fitness results)

July 5th, 2012 at 05:58 am

July 3:
10-min. exercise? Nope. I did walk a total of 60 mins. outside in the heat, but it wasn't vigorous. Hopefully it counted for something. Results: 2/3 days
Calorie counting? Yes: estimated 1,564. 3/3
Avoid night snacking? Yes. 3/3

July 4:
10-min. exercise? Yes. 3/4
Calorie counting? Yes: estimated 2,243. 4/4
Avoid night snacking? After that dinner? You bet. 4/4

***

After resolving we need to save up money if we're ever going to move, we actually sat down and tried to guesstimate what we might need for our two scenarios. We even checked out homes in our desired areas in Oxford, UK and Minneapolis, just to see what they would likely cost. (A lot of our other numbers are off-the-cuff guesses, which we hope to refine as one or the other of our two goals comes more into focus.) Anyway, here's our first rough set of numbers for each scenario:

Costs & offsets of moving: To UK (Oxford) in British pounds, then U.S. dollars
Home Price £ 325,000 $520,000
Upgrade US condo:
Kitchen £ 3,125 $5,000
Bathroom £ 3,125 $5,000
Floors £ 1,563 $2,500
Misc. (painting etc.) £ 625 $1,000
Moving expenses:
Immigration (lawyer, fees) £ 2,500 $4,000
Shipping £ 625 $1,000
Income interruption £ 5,000 $8,000
Interim lodging £ 1,875 $3,000
TOTAL COSTS £ 343,438 $549,500

Offsets:
New mortgage (assuming max amt we could prob qualify for) £ 225,000 $360,000
Profit from sale of UK flat £ 68,000 $108,800
TOTAL OFFSETS £ 293,000 $468,800

SAVINGS NEEDED £ 50,438 $80,700


Costs & offsets of moving: To U.S. (somewhere w/in Mpls)
Home Price $350,000
Upgrade US condo:
Kitchen $5,000
Bathroom $5,000
Floors $2,500
Misc. (painting etc.) $1,000
Moving expenses:
Immigration (lawyer, fees)
Shipping $1,000
Income interruption
Interim lodging $3,000
TOTAL COSTS $367,500

Offsets:
New mortgage (assuming 80% of cost of new home est. above) $280,000
Profit from sale of UK flat $108,800
TOTAL OFFSETS $388,800

SAVINGS NEEDED None, the above works out to a $21,300 surplus.

So basically what to infer from the above? If our calculations are anywhere near accurate, and we sold NT's UK flat, broke even on the U.S. one (after updating it) and borrowed as indicated for our new mortgage, to move to England we'd need to save an additional $80K cash, whereas to move within MN we'd actually have a $20K surplus with similar assumptions.

That means it would cost us an additional $100K to move to UK vs. staying in MN. Kind of staggering, until you look at how much we've managed to pay off of debt and raise our net worth in the past three years. If it's really worth it to us to do this, it's not an impossible sum of money.

Anyway, we've decided we should at least start saving toward that $80K mark for moving to the UK. If it turns out we can't move, it won't hurt to have set money aside. I'm thinking I'll open a money market account or online savings account so we at least make a bit of money on the savings.

We decided to take $1000 of the money we saved by my family refusing my offer to fly them out to see us, and start the fund with that. So, as I have the money in checking (just haven't opened a money market to put it in), that makes $1,000 down, $79,000 to go. There's no timeline to this goal yet; I'll put it out there if it becomes more clearly defined. Right now it's just, put as much money as possible toward the $80K goal, without disrupting any of our other goals or budget items.

4 Responses to “New financial focus begins to take shape (but first, fitness results)”

  1. Jane Says:
    1341487871

    Interesting. I love watching HouseHunters International : )!
    A nosy question just because I am curious, of course feel free to tell me to mind my own business:
    How sure a thing is being allowed to immigrate? I know a lot of people trying to stay in the US after their medical training (so pretty much guarenteed immediate employment), and it is not a certainty at all. Also know a few people trying to outright immigrate here without marrying a citizen, and that has been a nightmare. I'd imagine you and your child would get right in due to your marriage, but is there something in the law or your experience that makes you think they would accept AS's visa application, or accept it at the same time as yours? Maybe England has a different attitude toward permanent immigration? I would imagine that countries with lots of costly government benefit entitlements are more jealous of awarding citizenship?

  2. ceejay74 Says:
    1341492806

    Hi jane, you're absolutely right. It's difficult to establish permanent residence in England without being the spouse or child of a citizen. That's the only reason we have two paths to consider -- if moving there were a sure thing, it would be the only option we'd be envisioning.

    NT suggested recently that we draw up a list of pros and cons about each path. For me, the main drawbacks are A) how can we get AS there permanently and B) if she were to find, say, a stable permanent career with a place that was willing to sponsor her, would the immigration process draw any kind of unwanted attention to our relationship from immigration officials on either side? We're not intending to break any laws in terms of the methods of moving, but would there be grounds in someone's eyes to cast doubt on the legitimacy of the marriage if they knew there was an unmarried partner as well?

    Funny, I don't think a married man who'd had an affair but decided to stay married would have any trouble. But I worry about our situation.

    I know a couple who was permanently separated by borders due to immigration problems. After a few years, they just accepted the fact they'd never be together and divorced so they'd still have a chance at a full life. I can't fathom that and don't know how I'd recover if one of us got deported and barred from the other country.

    Clearly, we'd be hiring a lawyer right quick if AS got a job offer, so we could have an educated outsider assess the risks and possible scenarios, BEFORE we got Immigration authorities involved!

  3. snafu Says:
    1341515116

    Money market a/c are paying nearly zero. Check rates for on-line, well established banks whose savings a/c may pay a touch higher. There is no evidence rates will rise next year. Depending on your risk ratio, I suggest you consider opening and low cost, no fee [Vanguard type] Index Mutual Fund with an automatic Dollar Cost Average figure for monthly increases. That holds your feet to the fire and keeps you seriously focused on the goal.

    Sums can be added as available. You didn't mention a time line. Ideally this is a 5 yr. process but sums can be accessed within 2 business days. If your plan to emigrate doesn't materialize the money is there. Understand that the market fluctuates and there is moderate risk.

  4. Looking Forward Says:
    1341528948

    Good that you laid it out there now when there is time to plan/save.

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]