[cocktailgirl]

I'm currently negotiating a contract in banking in HK. My current salary in London is GBP 72K. How much HKD do I need to ask for to have the same standard of living as in the UK? Thanks v.m.

[EUChinese]

Firstly you need to aware that wages in HK on average is lower than in UK, but income tax in HK is far lower than in UK. around 35% of your wages earned in UK would go to income tax and NI ? you are looking at 10-12% of your total earning to go to income tax in HK (i think)

assuming you are a single person, GBP 72k after income tax and NI in UK, roughly leaving you GBP 47k a year = around GBP 4k a month (HK$ 57,000 a month). In london I am sure you can live comfortably having your own flat, own car and eat out a couple of times a week, but no where near luxury. (HK$14.4 = GBP 1)

presuming you were paying around 1k to 1.5k on a flat by yourself , you can get an equivalent level of flat in HK with the same amount of money for somewhere pretty central , (oh there is no council tax in HK, so it will save you HK15,000 a year) Transport costs are low, car can be expensive to maintain, assume you will be a sunday drive, looking at HK3000-HK5000 a month on petrol and other expenses (except the cost of buying a car).

in terms of dinning, depends on where you go, various choices and prices anything between HK$150 to HK$400 a meal + drinks should be decent (in london, youl would pay around 30 to 50 quid on a meal and drinks = $420 to HK$700 which means that u will probably be paying half of what u used to pay.

Really most things in HK are lower prices than in UK - i would say 2/3 of what you pay in london you can get in HK

just a rough thought, if you learn HK$45000 (GBP 3k a month) you will be able to have the similar lift style you have in london. However, if you are working away from home, of course yoo want to improve your life style. So if you can get anyhing between HK$50000 and HK$70000 a month will be pretty good. - you dont really want to lower your salary.

(2/3 of 72k = 48k a year = $HK700,000 a year = $HK58,000 a month)

[shengtang]

Am I basically right to say a lot of these media reports on Hk's high cost of living are really westerner oriented? I am a chinese american (not born in US) and frankly I think the opposite. All my HK friends think I have much higher cost of living. The irony is, most of money I spend goes to insurance companies and some sort taxations, the money they spend really goes to dining out and traveling abroad.
I don't know, you kind of see why the growth is in Asia but not here though ....

[cocktailgirl]

Thanks for your feedback! My offer was accepted today!

[MotoHK]

Originally Posted by shengtang

Am I basically right to say a lot of these media reports on Hk's high cost of living are really westerner oriented? I am a chinese american (not born in US) and frankly I think the opposite. All my HK friends think I have much higher cost of living. The irony is, most of money I spend goes to insurance companies and some sort taxations, the money they spend really goes to dining out and traveling abroad.
I don't know, you kind of see why the growth is in Asia but not here though ....

The cost of living IMO is cheaper in HK than versus major US cities with housing dependent on the US city. It's pretty much comparable. Taxes eat up almost half ones salary. However the US has a social security system.

[Sino Defender]

Originally Posted by MotoHK

The cost of living IMO is cheaper in HK than versus major US cities with housing dependent on the US city. It's pretty much comparable. Taxes eat up almost half ones salary. However the US has a social security system.

the social security system is about to break down as the us population continues to age. you are not paying for your future retirement plan. you are paying for the current old people, and you are going to pay more and more as there will be more old people. as a young person, when u reach retirement in 40 yrs, you will not be gauranteed anything. it's bad for younger people.
no one shall rely on it. i would rather not have the system and get more money for myself.

[EUChinese]

Originally Posted by cocktailgirl

Thanks for your feedback! My offer was accepted today!

So what was your offer if you don't mind me asking

[PDLM]

Originally Posted by MotoHK

However the US has a social security system.

Would you care to expand on what you think it is that the US has in this regard which HK doesn't?

[greentea]

Originally Posted by MotoHK

The cost of living IMO is cheaper in HK than versus major US cities with housing dependent on the US city. It's pretty much comparable. Taxes eat up almost half ones salary. However the US has a social security system.

I don't think that there is any guarantee for the social security system of the US. I would rather trust the money kept by myself, which is much guaranteed. Forget about any social security things as the world is going to age...

[HKNewBi]

I have been back in Hong Kong a year now. I have just spend the last week doing my 2004 and 2005 self assessment tax returns for our splendid fellows who slave away at Her Majesty's Inland Revenue (2004 I know, I have got a wee bit behind and picked up the odd fine or two).

One thing I have noticed, going over every line of my bank statement for a year in London and a year in HK, is that my monthly spend since moving to HK is FAR less than my spend in London to enjoy a similar lifestyle.

Gone are the late night cash point withdrawls to help persuade some illegal mini cab driver to take me home for 50 quid at midnight because I have just missed the last tube (or more often than not it was cancelled).

Gone are all the ridiculous 50 and 100 quid parking tickets and camera fines (I got picked up by the same camera twice in 2 weeks for having two wheels in a bus lane - first time I was pulling over for a police car with the sirens on behind me, the second time I was moving into a left turn lane and set off 10 foot too early).

Gone is the crazy priced monthly tube pass and the pile of expensive cab receipts I ran up when I had to get to a client meeting and the tube was shut / flooded / on strike / delayed etc.

Gone are so many other small items that really do add up when you go through them.

So from my perspective, I have noticed that I can live happily in Hong Kong on almost half the money than I did in London. Or to put it another way, I no longer live out of my overdraft and have started to contemplate that very alien concept of having some 'savings'!!!