Cost Comaprison

[Guest Stereotongue]

Hi everyone, I have been here in Australia (Sydney) for approaching 4 months now.

Even though I did research before I came, nothing could prepare me for the punch in the face that some of the prices here gave me. It's bloody expensive in comparison to the UK.

 

I thought I'd give a few comparisons for the same items so you can see how different certain prices are.

I have included links to the items also.

 

The prices in brackets are the currency converted prices at todays rate on XE.com of just over 1.60 to the pound :

 

UK Price. Australia Price Difference

MOTHERCARE :

Maclaren Techno XLR Stroller. £290 ($465) $599 (£373). + £83 ($133) in Aus

http://www.mothercare.com/Maclaren-Techno-XLR-Stroller---Black/Champagne/447401,default,pd.html?cm_sp=ProductFeatures-_-Category%2520landing-_-Maclaren%2520Techno%2520XLR%2520Stroller%2520-%2520Black%252FChampagne

 

https://www.mothercare.com.au/p-21755-maclaren-techno-xlr-stroller-persian-redgrey.aspx

 

 

UK Price Australia Price Difference

IKEA :

Mongstad Mirror £85 ($136) $299 (£186) +£101 ($161) in Aus!!

http://www.ikea.com/gb/en/search/?query=MONGSTAD+Mirror+brown

http://www.ikea.com/au/en/search/?query=MONGSTAD+Mirror+brown

 

UK Price Australia Price Difference

Pumpkin Patch :

2 pack short sleeve bodysuits £10 ($16) $22.99 (£14) +£4 ($6.41) in Aus

http://www.pumpkinpatch.co.uk/flatshot/S1BB15015/col/RVE/listing/152990/categorypath/baby/baby-boy/new-collections/space-explorer/

http://www.pumpkinpatch.com.au/search?searchFullText=S1BB15015

 

UK Price Australia Price Difference

Coca Cola (at Supermarkets) £1.98 ($3.17) $4.11 (£2.56) +£0.58 ($0.93) in Aus

 

Milk ( Semi Skimmed/Rediced Fat) 2L £1.58 ($2.53) $4.99 (£3.11) +£1.53 (2.45) in Aus!

 

These are only a few prices that I can compare as I am trying to find stores that are in both UK and Aus so to make it a fair comparison. The IKEA and Milk prices certainly are shocking.

 

 

Hope this helps someone.

Edited May 13, 2012 by Stereotongue

[amibovered]

Good post mate, a lot of people get caught out when they move here.

[NickyNook]

You're comparing prices based on the current exchange rate. What has the exchange rate got to do with it?

Australians earn australian dollars - they don't earn and pay for stuff with UK pounds.

 

Anyway milk costs $2 a litre in just about every supermarket. God knows where you're buying yours..

[byrned]

You're comparing prices based on the current exchange rate. What has the exchange rate got to do with it?

Australians earn australian dollars - they don't earn and pay for stuff with UK pounds.

 

Anyway milk costs $2 a litre in just about every supermarket. God knows where you're buying yours..

 

If you read the post she is quoting milk at 2 litres.

[byrned]

Yes things are expensive here if you compare to england especially for people coming over now. you do get used to it or like a lot of people now buy online, a lot of our friends here both ozzies and brits buy online, ozzies know they get ripped of have you checked out the price of books. Thank goodness for amazon and stores like that. Even with earing the higher dollar its still a rip off.

[Guest Stereotongue]

Well listen, if someone in the UK says 'how much is coke in Australia?" and I tell them the price in dollars, the first thing they will say is "how much is that in pounds?". We need something to compare it to to give it a value. The exchange rate is obviously important if I am to tell them the cost in pounds ( obviously duh). Now if coke costs twice as much in Aus than in the UK, but your salary is not double of what you are earning in the UK then it's not rocket science to see it's more expensive. It gives you a scale to work to. I am assuming a certain level of intelligence here.

Well as for milk, that price is what I paid in Coles yesterday - and God knows because he saw me.

I should mention that the post has screwed up my formatting, it was all laid out in columns when I wrote it but the post has removed spaces etc.

[NickyNook]

If you read the post she is quoting milk at 2 litres.

 

Typo on my part. Milk here costs $2 for 2 litres in every supermarket ($1 a litre).

 

It doesn't cost $4.99 for 2 litres, or 3.11 pounds for 2 litres, or 1.24 pounds ($2 at the current exchange rate.)

 

It costs $2. It will stay $2 regardless of what the exchange rate is doing. :wink:

 

As I said, god knows where the OP is getting their milk from..

[NickyNook]

Well as for milk, that price is what I paid in Coles yesterday - and God knows because he saw me.

.

 

Right, so you bypassed the cheap Coles milk and spent 2.5 times as much on some other brand?

[Guest guest36187]

Once you get to Australia, comparisons go out the window. Exchange rate changes too frequently and once you earn dollars you spend dollars.

 

It takes a while to stop doing the comparison but I have been here years now and couldnt tell you what anything costs over in uk!!!

 

With all due respect, Sydney can be more expensive to live than other cities. I know I found big differences between Perth, Melbourne and Brisbane where I live.

[Bobj]

Well listen, if someone in the UK says 'how much is coke in Australia?" and I tell them the price in dollars, the first thing they will say is "how much is that in pounds?". We need something to compare it to to give it a value. The exchange rate is obviously important if I am to tell them the cost in pounds ( obviously duh). Now if coke costs twice as much in Aus than in the UK, but your salary is not double of what you are earning in the UK then it's not rocket science to see it's more expensive. It gives you a scale to work to. I am assuming a certain level of intelligence here.

Well as for milk, that price is what I paid in Coles yesterday - and God knows because he saw me.

I should mention that the post has screwed up my formatting, it was all laid out in columns when I wrote it but the post has removed spaces etc.

 

How about comparing average wages too, then adjust/compare??

 

Average wage in the UK is £29500, or $46100 and the Australian average wage is $70000, or £44800.

 

Not as bad now, innit?:wink:

 

Cheers, Bobj.

[amibovered]

People get caught out is by thinking that they'll be getting a good wage over here, say $50,000 is like having £31,000, but think if they spend £70 a week on groceries in the U.K it'll only cost them around $110 here, that is why the OP is good, hopefully it might give some folks a reality check.

[Bobj]

People get caught out is by thinking that they'll be getting a good wage over here, say $50,000 is like having £31,000, but think if they spend £70 a week on groceries in the U.K it'll only cost them around $110 here, that is why the OP is good, hopefully it might give some folks a reality check.

 

'Twas only $104 last week...

 

Cheers, Bobj.

[amibovered]

'Twas only $104 last week...

 

Cheers, Bobj.

 

Better get you to do our shopping, was more than double that :elvis:

[Rupert]

Hi everyone, I have been here in Australia (Sydney) for approaching 4 months now.

Even though I did research before I came, nothing could prepare me for the punch in the face that some of the prices here gave me. It's bloody expensive in comparison to the UK.

 

I thought I'd give a few comparisons for the same items so you can see how different certain prices are.

I have included links to the items also.

 

The prices in brackets are the currency converted prices at todays rate on XE.com of just over 1.60 to the pound :

 

UK Price. Australia Price Difference

MOTHERCARE :

Maclaren Techno XLR Stroller. £290 ($465) $599 (£373). + £83 ($133) in Aus

http://www.mothercare.com/Maclaren-Techno-XLR-Stroller---Black/Champagne/447401,default,pd.html?cm_sp=ProductFeatures-_-Category%2520landing-_-Maclaren%2520Techno%2520XLR%2520Stroller%2520-%2520Black%252FChampagne

 

https://www.mothercare.com.au/p-21755-maclaren-techno-xlr-stroller-persian-redgrey.aspx

 

 

UK Price Australia Price Difference

IKEA :

Mongstad Mirror £85 ($136) $299 (£186) +£101 ($161) in Aus!!

http://www.ikea.com/gb/en/search/?query=MONGSTAD+Mirror+brown

http://www.ikea.com/au/en/search/?query=MONGSTAD+Mirror+brown

 

UK Price Australia Price Difference

Pumpkin Patch :

2 pack short sleeve bodysuits £10 ($16) $22.99 (£14) +£4 ($6.41) in Aus

http://www.pumpkinpatch.co.uk/flatshot/S1BB15015/col/RVE/listing/152990/categorypath/baby/baby-boy/new-collections/space-explorer/

http://www.pumpkinpatch.com.au/search?searchFullText=S1BB15015

 

UK Price Australia Price Difference

Coca Cola (at Supermarkets) £1.98 ($3.17) $4.11 (£2.56) +£0.58 ($0.93) in Aus

 

Milk ( Semi Skimmed/Rediced Fat) 2L £1.58 ($2.53) $4.99 (£3.11) +£1.53 (2.45) in Aus!

 

These are only a few prices that I can compare as I am trying to find stores that are in both UK and Aus so to make it a fair comparison. The IKEA and Milk prices certainly are shocking.

 

 

Hope this helps someone.

 

If you were daft enough to think that you can compare costs by comparing the current historically low exchange rate, then you were always in for a shock.

 

If somebody were buying these things on holiday then certainly it would seem like an expensive holiday. However for somebody living here, earning $ the current exchange rate is irrelevant and you should compare (if you must) by diving by at least 2, if not more. It doesn't seem so bad once you do that does it?

[Guest Stereotongue]

Average wages are nonsense. They are totally thrown out of whack by the minority of high income earners. I guarantee that there are more people earning less than average wage than above it. So don't compare average earnings. If we could see the statistics of how many people earn the average wage it would tell a different story.

[derren7]

Using the exchange rate to compare prices is a crude and misleading basis for cost of living comparisons. It is only pertinent when exchanging currencies or if you happen to be earning British pounds to buy Australian goods.

Let's say for example you buy a product for $1.60 when the exchange rate is $1.60 to the pound.From a British perspective that product is equates to a pound. Say tomorrow that the exchange rate changes so that it's $2.00 to the pound (unlikely, I know) From a British perspective that product is now worth 80 pence but it makes no difference to your purchasing power if you are earning aussie dollars as the product is still only $1.60.

The only accurate way to compare cost of living between the 2 countries is to work out what percentage of your income goes toward paying your bills, groceries etc

[Guest Stereotongue]

I guess it comes down to percentage of your salary that you spend on items.

in the UK my mortgage is about 20% of what my salary was.

Here, for a much smaller, poorer quality apartment in Blacktown it costs me 38% of the salary I get here.

[Guest Guest66881]

Easy answer is live within your means, don't compete with anyone and over spend trying to be better than next doors sally.

[Guest Stereotongue]

Can someone also tell me that a mirror form IKEA that is £85 in the UK costs $299 in Oz and the price is justified ? Probably made in the same factory so the manufacturing costs are the same.

Add a little for shipping and Oz overheads - I still would guess that the margin is bigger here.

[VERYSTORMY]

Back in the uk last year I was able to buy fruit in Morisons for a fraction of what I pay here. The funny thing was that is was Australian produce.

[frogian]

Stuff costs what it costs in the currency you earn, converting back to your home currency to work out what it's costing you is, IMO, a waste of time.

 

As an example, in the country where I last lived when I first arrived the exchange rate was around 5X to $1. It was 30X for a pint - 'equivalent' to $6. The exchange rate shifted to around 2.2X to $1 so, if I were to convert, I would be paying the equivalent of $13.63 a pint, however.....it was still only costing me 30X in the currrecy I was earning.

 

The only time this sort of conversion is worthwhile, again IMO, is when you are transfering cash oneway or another.

[derren7]

Can someone also tell me that a mirror form IKEA that is £85 in the UK costs $299 in Oz and the price is justified ? Probably made in the same factory so the manufacturing costs are the same.

Add a little for shipping and Oz overheads - I still would guess that the margin is bigger here.

 

It's swings and roundabouts. Some things will be cheaper and others more expensive. Take fuel, much more expensive in the UK. The imac I am using right now costs about 1000 pounds in the UK. Here I bought it for $1300, My ipad costs 329 pounds in the UK. Here I bought it for $399. We could go on endlessly comparing millions of products. From a personal perspective I find the cost of living here to be about the same as the UK.

Regards Derren

[CXW]

Possibly a different way of looking at it is what percentage of your income goes/went on what in the UK/Australia. Looking back over my accounts, this is what it looks like for Birmingham and Melbourne on a monthly basis for a single person with no dependents (a luxurious position to be in financially, I know). Income figs are approximate and shown net.

 

Birmingham (£2280/month net)

 

Housing (rental, 2 bed terrace): 23.3%

Utilities (gas, water, electric): 3% (I was a very low user)

Council tax and contents insurance: 3% (including simple person discount)

Car running costs: 6.7% (tax, 3rd party fire and theft insurance, petrol, breakdown cover, annual service and MoT)

Public transport: 5.6% (including travel to/from/in London due to partner living there)

Groceries (including lunch at work, excluding eating out and alcohol): 13.6%

Clothing, shoes, toiletries: 8% (budgeted, not always spent)

Internet, telephone, mobile: 2.1%

Savings: 32.8%

TOTAL: 78.1%

Available for non-essentials/entertainment: 21.9%

 

Melbourne (AU$4680/month net - health insurance of $54/fortnight paid by salary sacrifice)

 

Housing (rental, 2 bed townhouse in zone 2 eastern suburb): 32.5%

Utilities (gas, water, electric): 4.3% (water estimated as no bill yet, electric estimated to allow for seasonal variation)

Council tax/rates and contents insurance: 0.7% (contents insurance only; renting, so rates paid by landlord)

Car running costs: (rego, comprehensive insurance, petrol, annual service): 5.1% (you may also wish to budget for a traffic fine given how steep they are...)

Public transport: 2.7%

Groceries (including lunch at work, excluding eating out and alcohol): 9.6%

Clothing, shoes, toiletries: 8% (budgeted, not always spent)

Internet, telephone, mobile: 2.2%

Savings: 25%

TOTAL: 90.1%

Available for non-essentials/entertainment: 9.9%

 

I'm slightly surprised by the figures as I don't feel "worse off" in terms of non-essentials income - I can afford to eat out once or twice a week, do buy alcohol regularly, go to the cinema, etc. At the same time I've never been a big drinker, buy in bulk where possible, buy meat and fresh fruit and veg at butchers/grocers rather than in supermarkets - and the contents of my shopping basket at the supermarket reflects current offers.

 

I am also quite strict about budgeting for known expenses and savings and sticking to it - so my budget reflects the cut of the cloth, as it were. The other aspect to look at is pensions and future earning potential, and on both of these points I'm better off here than in the UK.

[Peach]

Can someone also tell me that a mirror form IKEA that is £85 in the UK costs $299 in Oz and the price is justified ? Probably made in the same factory so the manufacturing costs are the same.

Add a little for shipping and Oz overheads - I still would guess that the margin is bigger here.

 

If the £ hadn't collapsed in value $299 wouldn't seem so expensive to you. When I came to Oz in 2002, I got 3 $ to the £ - so everything seemed really cheap (when I converted to £). In 2004, the value of the £ had dropped to 2.5 so everything seemed cheap, but no so much so.

 

Since then the £ exchange rate fell off a cliff and $ prices converted back to £ are now seemingly expensive. It is something you just have to get over. )

Edited May 13, 2012 by guest32487

[LKC]

I don't think you can compare. When we came over in 2009 the exchange rate was $2.18 to 1GBP, now it is $1.60 or thereabouts. You could therefore on this logic say that my husbands salary ($65k) was once the equivalent of 29816GBP but is now worth 40625GBP. It isn't though, it is worth the same $65,000 that it was always worth. The information makes no sense and isn't of any value at all. If you are earning dollars you are spending dollars so a comparison to GBP prices are irrelevant. I reckon it is all swings and roundabouts anyway. I pay less for petrol, my mac computer and ipad were less here than I would have paid in GBP, some food and clothing is more. I have pretty much stopped shopping in places like Pumpkin Patch because I find the quality shocking anyway, you just have to adjust to shopping in a different marketplace.

Edited May 13, 2012 by LKC