lake7871

Hi All,

I've been seeing the great feedback on the forum and now need some advice.

We're an American family of 4, including a 5 year old and 2 year old.

I'm currently a management consultant at prominent firm in the States and have now received an offer from a boutique advisory firm in Dubai.

The offer is 60k AED/month. In addition, we receive 35kAED/child for education. We also receive business class flights back to the States once a year, but those can also be converted to cash, I've been given this to be an estimate of 160k AED for all of us, per year.

I'm currently making around $140k/year before taxes in the States.

So this is a fair increase in my pay, but I wanted to know, given how expensive people say Dubai is, if I should take the jump?

If so, how much should I allocate for a villa in a good area of Dubai? Can I save a significant amount, as well?

Thanks!

UKMS

Hi

You will get lots of advice about villas and where to live and the associated costs, it really comes down to what you are used to and whether you want to keep that lifestyle in Dubai.

I have recently moved and rented a very nice, but by Dubai standards fairly average 4 bed villa in Arabian Ranches 2 for 210,000. You can pay a lot more or a fair bit less depending on what you want, I was happy with that and didn't haggle too much as it fitted my housing allowance.

You haven't mentioned medical cover I assume you get this for the family ?
Lots of other things some ongoing, some one off that will eat away at your 60k some obvious some not so:-
Vehicle(s)
Agents fees 5% of your rental (one off)
Furnishing - You didn't mention relocation allowance.
DEWA deposit (one off)
DEWA bills can be quite heavy on a villa with a family living in.
Internet/Phone/TV
Plus the usual -
Groceries - you'll probably find high compared to US
Commuting costs
Eating out
Family fun
Etc

Others will advise you better on education fees but I suspect your allowance may need topping up

I think you may have over estimated on your airfares, 160k seems a lot ..... really depends how and when they calculate them. My company calculate all fares on a given set of dates in July and its the lowest available fare on those dates for a non flexible ticket it's always paid in cash though.

I may seem a bit negative, I'm not, I'm just realistic. 60k is a decent enough salary but it will soon erode with the high cost of living and really depends on the lifestyle you want, what you pay for your rent and whether you need to top up education.

Cheers and good luck.

DXBtoDOH

As a yank you need to be aware that you still need to pay income tax on your salary. There's a cut off threshold of around 100k USD plus you can deduct a bit more for housing, but above that you pay the full income tax rate applicable. So that will eat into your potential savings and budget.

School fees are on the very low side for a proper western school. The top two American schools, American School of Dubai and Dubai American Academy, charge between 80 to 90k per year per child.

American School of Dubai: Tuition and Fees

Fees and Payments | Dubai American Academy

Most Americans go to one or the other. There are other American curriculum schools around but they're either not as good or just as expensive. Having said that, there are also other international schools that are noticeably cheaper, mostly British curriculum or generic international curriculum. However, if you're working at a premier consulting firm that suggests something about your background and it tells me you will want to gravitate to either ASD or DAA. Please note that school fees do not apply to nursery, at least that's been my experience. They only kick in once enrolled at a proper school, and you will find that schools require a year at a nursery before primary).

This is my back of envelope breakdown of your expenditures, on a monthly basis (be aware that housing and school fees are usually paid annually):

Housing: 18k a month inclusive of utilities and internet. Based on a 180k property and 36k for utilities / internet.

Schooling (one child at DAA, one child at nursery): 7,000 a month to top up on your school fees (based on one kid at DAA, 84k factoring in additional expenses such as uniforms, trips, books etc, subtract the 35k allowance you get, add the 35k for nursery, divide by 12 months).

Transportation: 6k a month for two mid-range family cars. This is monthly payments plus petrol and insurance. Note: this is probably the biggest variable, pay in cash for used cars your payments are only insurance and petrol).

Groceries: 4-5k a month for shopping at a mix of Carrefour (hypermarket) and Spinneys (upscale grocery).

Misc entertainment, little purchases etc: 4k a month. This includes dining out once a week for the family, a few lunches out, maybe the movies once a month. Can easily spend much more.

Total: 40k and that's just to live. A decent, quiet, comfortable but not flash lifestyle.

You have 20k left over, which is decent savings, but out of that you need to fund clothing, holidays, additional expenditures, and yes, your taxes.

To be frank, you'll probably be lucky to end the year with 100k savings once everything is paid for.

There are variables to help bring down the expenditures. Cheaper, smaller villa for under 150k, pay cash for two secondhand cars and only have petrol/insurance/servicing costs. But you may find yourself wondering what the point is.

carcajou

The key to this is not the salary level but how much you can save compared to how much you can save on your current US salary. During the Golden Years ten years ago you could save a whole lot more on the same salary, but many expats made more than their home country salary anyways, so really made out.

So, how much more do you want to save, to make it worth it to go over there? Then research and calculate your budget.

You also have to be disciplined. A lot of Westerners come, get caught up in "the lifestyle" (new car, expensive weekend brunches, etc) and leave with no extra savings or less than they would have had if they stayed home. Which kind of defeats the point.

IKnowNothing

Do they though? Perhaps that's what they want, a few years of decadence and partying and don't care about savings?

Memories are more important than money.

mission

gotta agree - not every tom, dick & harriett comes out here to save.....most people i know (the younger crowd) come out here to enjoy the experience/life style etc and so saving isn't necessarily the end all and be all, of them being here.

Miss Ann Thrope

Aside from the costs, have you considered the living and working environment? In particular, do you know the clients with whom you may be working? You might find things frustrating and perhaps limited in terms of professional development and fulfillment if you are dealing with local family firms. Just a thought about another factor that you shouldn't ignore.

Taz786

I personally feel the salary is sufficient to have a comfortable lifestyle and save a decent amount.

But than again, its all about the lifestyle you want to live. I am living with my wife. Got a comfortable lifestyle and we spend around AED 15k per month on average. Note, I don't have any kids expenses, neither a villa (stay in a 2 bedroom flat) or worry about paying tax back home.

Millhouse

so totally different circumstances then, no?

sicklyman

yeah, so all he has to do is get rid of the kids, downsize his accommodation and change his nationality. Job done.

Taz786

Lol, guess my response didn't come across as I meant. Tried to imply that different people can survive on different budget. With my example, I spend aed15k whereas someone could easily spend aed30k with my same circumstances.

Anyways, I still feel the original post can survive on the package they've been provided and live a good comfortable life and save money.