Cost of living in Melbourne

[Guest The Pom Queen]

On 19/11/2017 at 09:30, dxboz said:

Perth is way more expensive than Melbourne!

Yes it is and Queensland seems more expensive also.

[starlight7]

I think Queensland is cheaper than where we are in Melbourne , wouldn't know about Perth these days but last time we went ( 3 or 4 years back) it seemed slightly cheaper. If you know where to shop it is fine though and there are many good farmers markets etc  The housing is definitely way up there but below Sydney.  Entry level is about $6-7,000,000 which I think is appalling and that won't get you anything much.

[Marisawright]

I don't think there's a lot of difference from state to state, EXCEPT when it comes to housing, and there the difference is absolutely massive.  Sydney is the most expensive.  Melbourne is about one-third cheaper.  Since mortgage payments make up a big part of most people's monthly outgoings, that's a big factor.

[starlight7]

Just looked back - I meant 600,000-700,000 not millions!  Even Melbourne isn't THAT bad.

[CeltInCaulfield]

You won't get much change from that 7m in Toorak... 

[Johnnyboy]

I don't want to turn this into an buying/rent thread but as others have mentioned already, 6-700k doesn't get you very much for a property in Melbourne.

[Goofy2018]

On 15/01/2018 at 18:23, The Pom Queen said:

Yes it is and Queensland seems more expensive also.

From what I've seen on realestate.com.au buying property in Melbourne is definitely more expensive than in Brisbane (generally speaking; I'm sure you can find bargains everywhere still if you look long and hard enough). Rents in Melbourne and Brisbane are quite similar in inner city suburbs. 

[Marisawright]

13 minutes ago, Goofy2018 said:

From what I've seen on realestate.com.au buying property in Melbourne is definitely more expensive than in Brisbane (generally speaking; I'm sure you can find bargains everywhere still if you look long and hard enough). Rents in Melbourne and Brisbane are quite similar in inner city suburbs. 

You have to be careful that you're comparing like with like.  

The median house price in Brisbane is currently $490,000.    The median house price in Melbourne is $720,000.   That's a big difference!   Sure, you'll find cheaper housing if you go further out, but Melbourne's outer suburbs are a l-o-o-o-o-o-o-o-o-ng way from the CBD.

[Goofy2018]

4 minutes ago, Marisawright said:

You have to be careful that you're comparing like with like.  

The median house price in Brisbane is currently $490,000.    The median house price in Melbourne is $720,000.   That's a big difference!   Sure, you'll find cheaper housing if you go further out, but Melbourne's outer suburbs are a l-o-o-o-o-o-o-o-o-ng way from the CBD.

True! Same in Brisbane...the cheaper houses are on the outskirts of the metropolitan area, probably a 1.5 hour commute to the city each way. Plenty of people seem to do it but it's not for me. 

[MB83]

@kevsan I would be very interested in getting a copy of your spreadsheet please if you could send it to me? Thanks 

[kevsan]

Hi, I've included the spreadsheet and added some basic salary figures in based on pay calculators for take home pay. The green cells are for adding stuff in, feel free to use it or not, but it might give you an idea of where money goes as a % compared to the UK, and if you can break even! Most of the UK stuff is from 2014 but might give you an idea of what to swap in and out.

I've updated slightly the AUS stuff, based on what i think we pay for shopping/elec  etc (my wife runs the budget!!), but if you want more specifics please feel free to ask on the forum and everyone will help where they can. Most pricing can be worked out online (like a typical grocery shop etc (coles.com.au / woolworths.com.au) but its a bit laborious and quicker to ask someone what they pay.

living costs_pio.xls

[Goofy2018]

On 15/01/2018 at 18:23, The Pom Queen said:

 

On 19/11/2017 at 09:30, dxboz said:

Perth is way more expensive than Melbourne!

Yes it is and Queensland seems more expensive also.

 

Not sure whether this refers to buying property or general living costs but I am doing ok renting on a less than average salary in Brisbane. I have to stick to a tight budget though and won't be able to buy property.

[bristolman]

1 minute ago, Goofy2018 said:

Not sure whether this refers to buying property or general living costs but I am doing ok renting on a less than average salary in Brisbane. I have to stick to a tight budget though and won't be able to buy property.

Yes, Brisbane isn't cheap by any means but is much more affordable than Melbourne. 

[Marisawright]

3 minutes ago, Goofy2018 said:

Not sure whether this refers to buying property or general living costs but I am doing ok renting on a less than average salary in Brisbane. I have to stick to a tight budget though and won't be able to buy property.

I'm assuming it refers to daily cost of living, not property.  I could imagine some costs being higher in Perth because of the cost of freight.  However, the ranking for property, in terms of price vs income, is as follows:

City	Price to income ratio
1	Hong Kong	19.4
2	Sydney	12.9
3	Vancouver, Canada	12.6
4	San Jose, USA	10.3
5	Melbourne	9.9
6	Los Angeles, USA	9.4
7	Honolulu, USA	9.2
8	San Francisco, USA	9.1
9	Auckland, NZ	8.8
10	London, UK	8.5
16	Adelaide	6.6
18	Brisbane	6.3
21	Perth	5.9

 

You can see the ranking is Sydney worst, Melbourne second, Adelaide third, Brisbane fourth and Perth fifth.

[starlight7]

My biggest shock was on a recent visit to New Zealand- just as expensive and more than Melbourne. 

[bristolman]

8 minutes ago, starlight7 said:

My biggest shock was on a recent visit to New Zealand- just as expensive and more than Melbourne. 

Yeah I saw something about that recently, it's crazy. I can't understand why or how. 

[Brownowl]

10 hours ago, starlight7 said:

My biggest shock was on a recent visit to New Zealand- just as expensive and more than Melbourne. 

I lived in NZ for 4 years, it's definitely more expensive I've just moved to Melbourne and the difference in cost of shopping/ whiteware / beds etc and groceries is remarkable, NZ don't pay as much as Australia I guess population etc but there's a real monopoly in NZ. Do that example a washing machine in NZ I paid 1500 at staff price here in Melbourne you get it for $500 and. I only bought it a year ago. So very frustrating. I personally don't think it's overly expensive here, it can be if you chose it to be like anywhere on the world. 

[Toots]

1 hour ago, Brownowl said:

I lived in NZ for 4 years, it's definitely more expensive I've just moved to Melbourne and the difference in cost of shopping/ whiteware / beds etc and groceries is remarkable, NZ don't pay as much as Australia I guess population etc but there's a real monopoly in NZ. Do that example a washing machine in NZ I paid 1500 at staff price here in Melbourne you get it for $500 and. I only bought it a year ago. So very frustrating. I personally don't think it's overly expensive here, it can be if you chose it to be like anywhere on the world. 

I first visited NZ well over 20 years ago and I was aghast at the cost of things - so much more expensive than in Australia and the wages were a fair bit lower.  I wondered how people managed and thought no wonder so many New Zealanders moved to Australia.  I think it has evened out a lot more now but as you say it's still fairly expensive.

[Johnnyboy]

I first visited NZ well over 20 years ago and I was aghast at the cost of things - so much more expensive than in Australia and the wages were a fair bit lower.  I wondered how people managed and thought no wonder so many New Zealanders moved to Australia.  I think it has evened out a lot more now but as you say it's still fairly expensive.

I don't know how you can manage it... Even though the salaries are higher in Aus than in UK, the rent and house prices makes the living cost barely manageable for a lot of people.

[Toots]

8 minutes ago, Johnnyboy said:

21 minutes ago, Toots said:

I first visited NZ well over 20 years ago and I was aghast at the cost of things - so much more expensive than in Australia and the wages were a fair bit lower.  I wondered how people managed and thought no wonder so many New Zealanders moved to Australia.  I think it has evened out a lot more now but as you say it's still fairly expensive.

I don't know how you can manage it... Even though the salaries are higher in Aus than in UK, the rent and house prices makes the living cost barely manageable for a lot of people.

Yes, it's a real problem for many people.

Us oldies were the very lucky ones who bought houses when they were easily affordable and we were on good wages too.  Different story nowadays.  Much harder.  The easy days are gone for good I think.

[Marisawright]

47 minutes ago, Johnnyboy said:

1 hour ago, Toots said:

I first visited NZ well over 20 years ago and I was aghast at the cost of things - so much more expensive than in Australia and the wages were a fair bit lower.  I wondered how people managed and thought no wonder so many New Zealanders moved to Australia.  I think it has evened out a lot more now but as you say it's still fairly expensive.

I don't know how you can manage it... Even though the salaries are higher in Aus than in UK, the rent and house prices makes the living cost barely manageable for a lot of people.

You are so right.  It's a major topic of conversation in the media in Australia.    Australia used to be the land of opportunity because it offered the chance to make more money, have a better house and a better quality of life.   Australia still offers an adventure and for those who like the lifestyle, it's a great place to live - but nowadays, it's quite likely you'll be worse off financially than if you'd stayed in the UK.

[Marisawright]

On 10/25/2017 at 05:09, Johnnyboy said:

 

My wife is very reluctant about the move, I would still like to have a go and try a different lifestyle.

@Johnnyboy, I just re-read your first post and saw this line.  It really, really worries me.   For goodness sake, if your wife really doesn't want to go, don't nag her into it.  Anyone on this forum will tell you - it's stressful and difficult enough emigrating when both of you are 100% excited and committed to the move. If one of you is doubtful, don't even think about it - you're setting yourself up for failure.

We've seen it too many times. The wife loves the idea of an Aussie adventure, while it would never have occurred to the husband to leave the UK.  The wife goes on and on about how great it will be, until finally the husband gives in, because he knows how happy it will make his wife.  He may even persuade himself it's a good idea "for the sake of the kids" (which is rubbish, kids do equally well in both countries).    And then the couple finally arrives in Australia, and the husband discovers that he misses his family and friends even more than he feared, or that he hates the climate, or that the finances are really, really difficult, or that he can't get a job - and he becomes desperate to go home. Remember, it's cost them at least $40,000 to make the move and get settled.  It's going to cost the same again to go home.  So they end up back where they started, with an even bigger mortgage, and no jobs.

Not worth it. 

 

[Toots]

48 minutes ago, Marisawright said:

@Johnnyboy, I just re-read your first post and saw this line.  It really, really worries me.   For goodness sake, if your wife really doesn't want to go, don't nag her into it.  Anyone on this forum will tell you - it's stressful and difficult enough emigrating when both of you are 100% excited and committed to the move. If one of you is doubtful, don't even think about it - you're setting yourself up for failure.

We've seen it too many times. The wife loves the idea of an Aussie adventure, while it would never have occurred to the husband to leave the UK.  The wife goes on and on about how great it will be, until finally the husband gives in, because he knows how happy it will make his wife.  He may even persuade himself it's a good idea "for the sake of the kids" (which is rubbish, kids do equally well in both countries).    And then the couple finally arrives in Australia, and the husband discovers that he misses his family and friends even more than he feared, or that he hates the climate, or that the finances are really, really difficult, or that he can't get a job - and he becomes desperate to go home. Remember, it's cost them at least $40,000 to make the move and get settled.  It's going to cost the same again to go home.  So they end up back where they started, with an even bigger mortgage, and no jobs.

Not worth it. 

 

Absolutely agree.

Both the husband and wife should be gung-ho about the move otherwise it's not worth it.  

[akiralx]

52 minutes ago, Toots said:

Absolutely agree.

Both the husband and wife should be gung-ho about the move otherwise it's not worth it.  

Yes, I would say unless there is something 'wrong' with your UK life, I would not come to Aus now.  I might even say, don't come unless you have a firm job to go to.

[Marisawright]

2 minutes ago, akiralx said:

Yes, I would say unless there is something 'wrong' with your UK life, I would not come to Aus now.  I might even say, don't come unless you have a firm job to go to.

I don't think I'd go that far.  Some people can afford the adventure. Some people have good reasons for wanting to come to Australia.  My message is just - never, ever drag someone else along with you!