Yes, it’s true: according to an annual world consumer price index1 Australia is the most expensive country to live in. These days it’s 12% more expensive than the United States, while India is the cheapest of the 19 countries examined.
Sydney and Melbourne rising out of reach
A roof over your head is no longer a given in Australia, especially in Sydney, the 5th most expensive city in the world.
House prices at historic highs―and almost five times the average household income of residents—are forcing some Sydney families to consider moving elsewhere2.
Melbourne residents live in the 8th most expensive major city with a burgeoning population pushing demand higher. While annually Sydney’s population has been increasing by 80,000 people, 95,000 are settling in Melbourne prompting demographers to predict Melbourne’s population will overtake Sydney’s by 20303.
More than rising property prices
Australians are feeling the pressure from more than just property prices. When it comes to basic goods and services the annual world consumer price index found the cost of living in Australia is more expensive than most other places.
Booking a room
Sydney is the most expensive when it comes to short-term accommodation. A five-star hotel room in Sydney is 232% of the cost of its New York counterpart whereas you’d pay just 72% in Melbourne.
Buying a drink
Two-litres of soft drink in Sydney will cost 51% more―and just 18% more in Melbourne―than in the Big Apple. When it comes to beer, Sydney and Melbourne both offer better deals than New York. And as you might expect, Germany—at about half the price—is the place to raise your glass.
Shopping for clothes
You guessed it. Australians pay more than Americans whether it’s buying Adidas runners or a pair of Levi's jeans. But we pay less than most Europeans for the same items.
Paying your fare
Getting from A to B is no laughing matter in Sydney. Public transport fares are higher than any other city in the world, with taxi fares 15% more expensive than New York’s.
One thing cheaper in Sydney and Melbourne is gym membership. It’s about half the price of New York’s.
How to get ahead
While Aussies’ living costs continue to rise it doesn’t mean building wealth is impossible. But it’s vital to get a handle on your finances by planning ahead and taking the pressure off.
Work towards building wealth
Then work with a financial adviser to build long-term wealth while meeting living costs.
Take the pressure off
If it’s all too much and you’re considering moving away from the big smoke, visit the Numbeo website where a cost of living calculator generates comparisons for everything from a café latte to a three-bedroom apartment.
Getting ahead is possible when you plan ahead. If you’d like to find a financial adviser call us on 131 267 and we’ll put you in touch with someone who can help.
1 Deutsche Bank, Mapping the World's Prices 2015, http://pull.db-gmresearch.com/cgi-bin/pull/DocPull/17411-76F9/99524599/DB_RandomWalk_2015-04-14_0900b8c0898020b1.pdf
2 Sydney Morning Herald, smh.com.au/nsw/sydney-tax-why-you-pay-150000-extra-to-live-in-emerald-city-20150606-ghhb3z.html.
3 Sydney Morning Herald, smh.com.au/nsw/sydney-tax-why-you-pay-150000-extra-to-live-in-emerald-city-20150606-ghhb3z.html.
A budget can help you work out what you’re spending money on and when