Move soon or wait until we have more money?

Posted by off-grid-crumpet@reddit | expats | View on Reddit | 12 comments

Hi all, looking for an outside perspective on our situation, hopefully from people who have made the leap abroad and have some perspective on the process.

My husband and I (both currently early 30's) have decided to move to New Zealand ( I grew up there and my family lives there), but the question is when. We have the option of leaving in 3 years time, or leaving in 7 years time.

Option 1 - If we were to leave in 3 years (2029), we would have a 5 year old, a large house deposit (about 70%) and enough savings to sustain us for the first 3-6 months whilst we find jobs and settle in. We would need to both work full time, but we would be in New Zealand living where we always wanted whilst our child is still young.

Option 2 - if we stay in our current jobs another 7 years until 2033 (we work in public sector defence, very secure), we will walk away with a £50,000 tax free lump sum amount from work and enough savings to buy a house in CASH (approx $900,000), as well as enough cash savings to sustain 2 years out of work. My husband would also immediately start to get pension payments from work (he would only be 40 at the time) of approximately £700 a month until pensionable age when his full pension would kick in. This would mean we would have practically no financial stress, and could probably both work part time whilst being mortgage free. However, our daughter would be 9 by then, as we would be 38 and 40.

Our dilemma is that: 7 years feels like a long time to keep slogging it out in demanding jobs, but the financial benefit feels stupid to walk away from. Also, we worry that moving our daughter at age 9 as opposed to age 5 will be more difficult for her, plus she would have spent most of her childhood in the UK, when we would prefer for her to grow up in NZ. There is also the worry of 'what if one of us gets ill and dies before then' and the concerns over potential regrets for postponing our dream.

If you were us, what would you do? Move sooner for the lifestyle but have to maintain full time work, mortgage, etc, or wait to be fully financially secure and essentially semi retired?

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Illustrious-Cup2174@reddit

I would leave in 3 if it’s what you really want, money isn’t everything and you certainly won’t be struggling. Live the life you want

Able_Elderberry_3786@reddit

the financial case for waiting is real but 7 years is a long time to delay the life you actually want. your daughter adapting at 5 vs 9 is a genuine difference too. the pension and paid off house will still be valuable even if you leave 4 years early.

Gatitochikito@reddit

Hi, I would say your second option seems like is the best. Maybe you won't like what I'm gonna say but a third option could be better. There are countries where housing doesn't cost that much.

FlippinHeckles@reddit

Though they have family in NZ which I presume is a legitimate major reason. Family support has a value.

why-complicated@reddit

Are your jobs in the UK really so much more demanding than the jobs you’d aim for in NZ?

off-grid-crumpet@reddit (OP)

We are both in the armed forces, so yes - both have to deploy, etc, which is difficult. In NZ we would be looking for more 'normal' jobs, like an admin role for me, construction for him, etc, so would definitely earn less than we do in the UK

Ok, that seems to be make sense.

Where in NZ are you looking to move?

You’ll want to check that tax treatment of that £700pm pension.

Looking at Nelson, as it's where we feel most at home, and has a slower pace of life. The £700pcm is the net amount after being taxed in NZ :)

djmom2001@reddit

Do you have to buy a house? Can you rent? That is a huge amount of money to have tied up in a house in a place where your husband has never lived.

I fear in the 3 year option, we would not be able to afford to rent, so throwing our savings into the house and having a small mortgage would be the best affordable option, as the monthly mortgage would be half of what monthly rent would be.

SDV01@reddit

One thing you really need to factor in here: this isn’t just about income, this decision has long-term legal consequences too.

Whichever country you choose now is likely to become your child’s “habitual residence.” If you stay in the United Kingdom and build a life there, it becomes very difficult to later move to New Zealand with your child if your relationship breaks down. Under the Hague Convention, you can’t just relocate a child internationally without the other parent’s consent or a court’s approval (and courts often prioritise keeping the child where they’re settled).

The reverse is just as true: if you move to New Zealand and settle there, your husband can’t take your child back to the UK without your agreement.

Tamia91@reddit

It’s your call in the end, but 7 years is a long time. Do you mind working in NZ? In my opinion, you are financially well off in both situations.

And about your daughter: moving younger is probably easier, but 9 is also not super old.