Need advise on a move from the US to London

[Vacumatic]

Some excellent advice above.

London is a very expensive to live in, especially renting an apartment. I have a 2 bedroom apartment in an area close to the financial district because I dislike a long commute, the rent is £3000 a month plus £300 monthly service charge in Canary Wharf.

Food costs are comparable to the rest of the UK, eating out is about 25% more expensive. The great thing about London is there is always a great many things to do and public transport is superb, buses and the underground provide an excellent service. Forget about having a car for central London, my apartment has an underground car park, some of the cars in their haven't moved in 20 years.

The average salary in the financial district is £70,000, this takes into account very junior and service positions, most young people who work in banking should be earning around £250,000 by their mid 20s with a similar annual bonus. There are some horror stories in terms of working conditions, 12 hour days are normal, regarded as a minimum. You will see young people coming out of their offices at 10pm having started at 7am. My daughter is in Financial PR. earns and has people in her team who work 12 hours, go home, shower and change, the taxi is outside waiting for them and then go straight back to work for another 12 hours.

I am not sure that I could go along with the idea of a pay cut to move to London unless the employer pays for the apartment. There is also some issue on double taxation, having to pay income tax in both the US and the UK, you will need to speak to a US tax expert on this one.

 

[Northam Saint]

Some excellent advice above.

London is a very expensive to live in, especially renting an apartment. I have a 2 bedroom apartment in an area close to the financial district because I dislike a long commute, the rent is £3000 a month plus £300 monthly service charge in Canary Wharf.

Food costs are comparable to the rest of the UK, eating out is about 25% more expensive. The great thing about London is there is always a great many things to do and public transport is superb, buses and the underground provide an excellent service. Forget about having a car for central London, my apartment has an underground car park, some of the cars in their haven't moved in 20 years.

The average salary in the financial district is £70,000, this takes into account very junior and service positions, most young people who work in banking should be earning around £250,000 by their mid 20s with a similar annual bonus. There are some horror stories in terms of working conditions, 12 hour days are normal, regarded as a minimum. You will see young people coming out of their offices at 10pm having started at 7am. My daughter is in Financial PR. earns and has people in her team who work 12 hours, go home, shower and change, the taxi is outside waiting for them and then go straight back to work for another 12 hours.

I am not sure that I could go along with the idea of a pay cut to move to London unless the employer pays for the apartment. There is also some issue on double taxation, having to pay income tax in both the US and the UK, you will need to speak to a US tax expert on this one.

WOW ! not really that surprised but that’s a hell of a lot to have on your shoulders for that you must have a high level of responsibility and stress. It’s very rare we ever visit London now. Use to go up a couple of times a year but when you live in North Devon the amount of people there and the hussle and bussle puts you off. We do have a visit to the O2 in November it will involve an overnight stay. It’s lol planned for a hop on the tube and to the hotel, don’t wish to be walking around much. Last time I went up with a mate for the Motor Show 2 years ago it was £7.50 for a pint !

 

[dc68]

"There is also some issue on double taxation, having to pay income tax in both the US and the UK, you will need to speak to a US tax expert on this one".

This is as very good point, US citizens pay tax in the US wherever they work as a general rule. Your son needs to check his liability before committing.

 

[Vacumatic]

WOW ! not really that surprised but that’s a hell of a lot to have on your shoulders for that you must have a high level of responsibility and stress. It’s very rare we ever visit London now. Use to go up a couple of times a year but when you live in North Devon the amount of people there and the hussle and bussle puts you off. We do have a visit to the O2 in November it will involve an overnight stay. It’s lol planned for a hop on the tube and to the hotel, don’t wish to be walking around much. Last time I went up with a mate for the Motor Show 2 years ago it was £7.50 for a pint !

I grew up in Yorkshire and never got used to London beer, overpriced, overchilled and no flavour at all.

The rents are outrageous, so bad that the agents quote a weekly rent instead of monthly.

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This flat is not that special having no river view and not that good an area.

I am retired now, I bought the flat in 1998 and use it when I can, it increases in value every year by a lot more than inflation and interest rates.

I like a walk around London, not so much Oxford Street/ Regent Street shopping areas but really enjoy the City, Lloyds, Bank of England and Leadenhall.

View: https://www.youtube.com/watch?v=mQXPk6mb12U

 

[Northam Saint]

I grew up in Yorkshire and never got used to London beer, overpriced, overchilled and no flavour at all.

The rents are outrageous, so bad that the agents quote a weekly rent instead of monthly.

Properties for Rent in Canary Wharf, E14 | Property to Rent and to Let in Canary Wharf, E14 | Foxtons

View our wide range of properties to rent in Canary Wharf, E14. Whatever your requirements, let our experts help find the deal property for you. Foxtons - London's Number 1 Estate Agent

www.foxtons.co.uk

This flat is not that special having no river view and not that good an area.

I am retired now, I bought the flat in 1998 and use it when I can, it increases in value every year by a lot more than inflation and interest rates.

I like a walk around London, not so much Oxford Street/ Regent Street shopping areas but really enjoy the City, Lloyds, Bank of England and Leadenhall.

View: https://www.youtube.com/watch?v=mQXPk6mb12U

That’s good you have retired and can enjoy it when you want. A good and wise investment for sure. When I was a lad we use to go up quite a bit. My dad was in one of the hospitals up near the old BBC building, we walked for miles. We would go up early see some sights then go and visit him. Used the free rail tickets from Kellogg’, ate loads of cereal ! LOL !

 

[Merkurologist]

The rents are outrageous, so bad that the agents quote a weekly rent instead of monthly.

That reminded me of when I interviewed for a 6 months IT contract in London, over 20 years ago, the project manager was from Birmingham so we got chatting about life away from home, I was still working in Newcastle with the main home in Bournemouth and he said he found a nice room in a family home, 15 min from work for £125. I said "that's very reasonable cause I pay £100 a week in a B&B in Newcastle.... he replied "it's £125 a day!!!"

 

[Zwilling]

Uprooting to live in London, no way, no insult intended for anyone living in London but I’d be very cautious of where I was living. London seems, if you believe the news quite tense and certain areas are as good as no go zones.

This is simply not true. The area I live in is often mentioned in sensationalist media pieces as one of these no-go zones, and it is mostly pleasant, safe and inclusive. I cannot think of a single area of London that I would consider to be dangerous, other than the usual street smarts you'd have in a major city. Crime statistics also bear this out - crime has been dropping for years. Some alarming gang turf wars have drawn a lot of attention, but this is unlikely to affect anyone who is not already involved, and the numbers of victims are (for a city of 8 million) still relatively low.

In media land, fear is what sells papers. Don't let them turn you against your fellow man.

But on-topic, the western part of Surrey is very much not London. There are some very desirable green parts and lovely English villages here, some of which can be more expensive to live in than average London prices. It should be possible to live relatively affordably in places like Guildford and Crawley, given an expat wage. London would be in easy reach for weekend fun.

 

[Northam Saint]

This is simply not true. The area I live in is often mentioned in sensationalist media pieces as one of these no-go zones, and it is mostly pleasant, safe and inclusive. I cannot think of a single area of London that I would consider to be dangerous, other than the usual street smarts you'd have in a major city. Crime statistics also bear this out - crime has been dropping for years. Some alarming gang turf wars have drawn a lot of attention, but this is unlikely to affect anyone who is not already involved, and the numbers of victims are (for a city of 8 million) still relatively low.

In media land, fear is what sells papers. Don't let them turn you against your fellow man.

But on-topic, the western part of Surrey is very much not London. There are some very desirable green parts and lovely English villages here, some of which can be more expensive to live in than average London prices. It should be possible to live relatively affordably in places like Guildford and Crawley, given an expat wage. London would be in easy reach for weekend fun.

Exactly why a said “if you believe”. You do have to speak as you find, all the newspapers have a political agenda. Without first Hand experience of any area it’s difficult to judge. I grew up in a rougher area of Southampton and went to one of the roughest schools there. I was always the smallest lad, but my mate was the biggest and I was never bullied, in fact I could even wander over the next neighbourhood. During that time there were turf wars with other schools. Again though I was known by one of the other school turf hard nuts. I should add I was never nd have never been in any sort of trouble.

But when you live in an area you are always known as living there and I think this gives you some sort of level of security. Also like you say its affiliation to any trouble groups etc.

Sad but as a stranger to an area I would avoid hot spots. Apologies but I’d rather be safe.

 

[Zwilling]

Exactly why a said “if you believe”. You do have to speak as you find, all the newspapers have a political agenda. Without first Hand experience of any area it’s difficult to judge. I grew up in a rougher area of Southampton and went to one of the roughest schools there. I was always the smallest lad, but my mate was the biggest and I was never bullied, in fact I could even wander over the next neighbourhood. During that time there were turf wars with other schools. Again though I was known by one of the other school turf hard nuts. I should add I was never nd have never been in any sort of trouble.

But when you live in an area you are always known as living there and I think this gives you some sort of level of security. Also like you say its affiliation to any trouble groups etc.

Sad but as a stranger to an area I would avoid hot spots. Apologies but I’d rather be safe.

Sure, being a local might make a difference. And less salubrious areas usually get fewer visitors, as there is little for them there. Funnily enough, the highest crime rates by far in London are in Westminster, which is a reminder that the vast majority of crime is opportunistic rather than violent.

Ironically, my wife and I came back into London last Sunday afternoon, after visiting friends on the south coast, and it is one of the only times I have felt unnerved in London. Lots of football fans spilling into London Bridge station and the atmosphere was pretty jumpy at that time, with hours to go until the game. We were glad to watch it from the comfort of our sofa, away from the madness.

 

[Zhang Doe]

"There is also some issue on double taxation, having to pay income tax in both the US and the UK, you will need to speak to a US tax expert on this one".

This is as very good point, US citizens pay tax in the US wherever they work as a general rule. Your son needs to check his liability before committing.

There is generally some degree of off-set. If UK taxes are higher, what he pays there will be credited against his US obligations. I am oversimplifying but ultimately he may not end up owing anything. This was my case when living overseas in a country with higher tax rates than the US.

 

[Rufusdog]

I’ve lived and worked in 8 countries and wouldn’t forgo the experience for anything. Back in the day I would have given my eye teeth to have worked in London; however, I did spent much time there on business and holiday, which only whetted my appetite for more. From a personal development perspective I found having to adjust to a variety of societies and cultures a very positive experience. In terms of my career it did me very well too. There are a variety of reliable resources that provide cost of living comparisons that your son should avail himself of. But in the final analysis it’s not all about the money. He should take a long term view on how the posting could affect his personal development and career prospects.

As Samuel Johnson so aptly put it, “…when a man is tired of London, he is tired of life; for there is in London all that life can afford.”

 

[slapo]

I think the one thing worth noting is that if he likes to socialise, pubs are really the usual go-to for most people here (that's my impression anyway).
I loathe most pubs as I find their stench quite unpleasant. They play loud music forcing you to yell at whoever you're trying to have a conversation with and it's still difficult to catch what the other person's saying. I suppose it's there to act as a privacy screen, but it was apparrently unnecessary in any other country I've been to.
I much prefer the odd cafe (but I'm not a coffee drinker and they usually serve just overpriced black tea) or smoothie shop, but it's fairly rare I manage to convince people to go there. They just seem to prefer to get a little buzzed at the end of the day. Or maybe it's just me and people prefer not to talk to me.

 

[Cannoncocker]

Please note that he will be living and working in West Surrey and not London. Thanks.

 

[Forged]

Living on $95K in the London metro area (commutable distance), for 2 people? Will his wife be working as well? If not, seems like it’s going to be a significant drop in standard of living.

As a single U.S. resident who currently lives in one of the most expensive metro areas in the country (Boston), and who lived temporarily in St. Louis prior to moving to Boston, I can safely say that simply moving from St. Louis to Boston and taking that sort of pay cut would be a massive hit financially. The people I know in Boston who have lived in the London area all tell me it’s much more expensive than Boston so….. Basically he should be asking himself if he’d be willing to relocate to San Francisco on that salary.

That said, really depends on where he and his wife are in life - if they are in their 20’s - 30’s and experience (life, work) is more important than standard of living and saving, it might well be worth doing, but I can’t see any way that $95K in London remotely approaches $130K in St. Louis.

But again, I’m a U.S. Citizen living stateside and just going by what I’ve been told by every person I’ve ever met who lived and worked in both London metro and U.S. cities. That’s somewhere around 30-40 people, most of them in the medical or financial fields here in Boston, FWIW.

 

[Zhang Doe]

Living on $95K in the London metro area (commutable distance), for 2 people? Will his wife be working as well? If not, seems like it’s going to be a significant drop in standard of living.

As a single U.S. resident who currently lives in one of the most expensive metro areas in the country (Boston), and who lived temporarily in St. Louis prior to moving to Boston, I can safely say that simply moving from St. Louis to Boston and taking that sort of pay cut would be a massive hit financially. The people I know in Boston who have lived in the London area all tell me it’s much more expensive than Boston so….. Basically he should be asking himself if he’d be willing to relocate to San Francisco on that salary.

That said, really depends on where he and his wife are in life - if they are in their 20’s - 30’s and experience (life, work) is more important than standard of living and saving, it might well be worth doing, but I can’t see any way that $95K in London remotely approaches $130K in St. Louis.

But again, I’m a U.S. Citizen living stateside and just going by what I’ve been told by every person I’ve ever met who lived and worked in both London metro and U.S. cities. That’s somewhere around 30-40 people, most of them in the medical or financial fields here in Boston, FWIW.

Agreed. Hence it seems like the employer did the cost of living calculation incorrectly, possibly did not factor higher UK taxes into the net compensation calculation, and the car may have been rolled into the valuation of the proposed package.