Comparison - cost of living Australia (out of interest)

[MangoTango28]

Random post, no real purpose but I find cost of living fascinating around the world. Always have. I have been reading posts about increasing costs in the UK and was keen to compare it to Australia where I live (orginally UK)

People are always saying to me how expensive they believe Australia to be but I don't see it that way to be honest. Food is sky rocketing though at the moment (lettuce and berries are off the shopping list for the foreseeable!!!)

I have been redoing our figures ready for a finance planning meeting (need to sort some extra insurances) and done a breakdown of our costs and thought others may find it interesting (or maybe I'm strange?!) I have converted to GBP based on Google conversion . I am not gloating just thought and interesting topic discussion .

We are 30. No kids (yet)

Monthly avg costs
Joint earnings per month after tax (avg) = £7190

Mortgage = £1146
Rates = £55 (more next year)
Electric = £85
Gas = £17.25
Water = £100
Contents insurance = £25
DP phone = £17.25
My phone = £46.93
Car 1 Insurance = £30
Car 1 Registration = $43
Car 1 Petrol = £114
Car 2 Insurance = £17.83
Car 2 Registration = $36
Car 2 Petrol = £40
TV subscriptions = £20
Spotify = £11
Food Shopping = £450

Leaving approx disposable income = £4936

Disposable is spent on savings, days out, hair, beauty, clothes , all the crap!
Possibly one or two items I may have missed that will come to me!

Last year we saved really hard for our house deposit whilst renting. We were lucky to be able to put a big chunk (DP does do lots of overtime )and this year has been doing up the house .

Is anyone suprised by the cost comparisons at all or as expected compared to where you live?

The price of lettuce is a freak phenomenon driven by the appalling weather. It will eventually go back down in price and isn't a good marker to use for comparison. Not that we are paying that as there is no lettuce available here at all!

These threads always vary widely as so prices in Australia. I am in Perth where houses prices are a lot cheaper than the east coast, our mortgage for a four bed house with pool is under $1500 a month ( we over pay it). Also our power bills are small, under $300 every two months and about $60 for electricity (we have solar). We also earn much higher wages than we did in the UK, so our standard of living is much better. Some things like groceries felt much more expensive when we moved here, but friends who have been back to the UK and Ireland recently say your prices are zooming up too. We try to buy seasonally as out of season prices can be crazy, and we shop in Aldi (mostly). Also our cars are paid for which helps. But I know if we had moved to Sydney or Melbourne we would be a lot poorer than we are here.

As for eating out, we usually go out for lunch every weekend but recently we are being much more picky about where we are going, as quality in lots of places has decreased as businesses are effected with staff shortages. But hopefully that will improve again in time.

I'm in Adelaide. A few things definitely cheaper here than in the UK: petrol, parking (I hardly pay to park anywhere, in the UK I seem to have to pay everywhere except the supermarket), housing (my average family home in a lovely area is half of what I'd pay for an average family home in an equivalent UK area).

most things are cheaper in the UK, especially groceries - but salary is a lot higher here. I think it evens out overall.

This is a better comparison that one person's experience which is probably not representative
www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=United+Kingdom&country2=Australia

Consumer Prices in Australia are 20.24% higher than in United Kingdom (without rent)Consumer Prices Including Rent in Australia are 18.79% higher than in United KingdomRent Prices in Australia are 15.67% higher than in United KingdomRestaurant Prices in Australia are 1.34% higher than in United KingdomGroceries Prices in Australia are 49.72% higher than in United Kingdom

Salaries in Australia are much higher though at £3348 monthly net compared to just £2242 in the UK.

I don’t have anywhere near that much disposable income OP but I AM currently eating some lovely Blackberries I’ve just had delivered today in my grocery order, they were around AUD6.00. I think I live quite well, I realise how fortunate I am (single no children). I almost own my house outright (in Sydney).

Over the last 15 years UK has also got a lot poorer relative to other developed countries including Australia.

Since 2007 Australia's Gdp per capita has increased from around $40,000 US$ to around $52,000 - 30%. In the UK it has rather worryingly shrunk from $50,000 to $40,000 meaning that the average person has got significantly worse off in the UK.

If it not surprising we are losing a lot of our skilled staff to Australia.

You have a relatively small mortgage vs your income & I assume a nice house.

Someone on your income & age in London would likely have a mortgage 3 times as much unless significant family help. Your other costs seem cheaper than I expected.

What a surprise… high income DINKS unperturbed by cost of living and have ample disposable income.

Spare me any wide eyed reply and instead run the numbers again for two average salaries and childcare costs. Or try a single income saving for a deposit. If you’re really feeling keen, run it for a pensioner or a family on the DSP and see if you notice anything about why people might think Australia is expensive. Ffs.

Sounds like your petrol is nearly half the price in the UK right now - just typed £2/l in the most expensive places. Distances are bigger tho.

What is car registration?

Ah yes, that’s right.
some accumulated so much they go sick just before they retire so it’s not wasted

In dollars now to give better understand (converted to pounds above)
we borrowed $530,000 so mortgage being $460 per week. Avg food shop $180 a week. We really don't eat out that much (or what I'd consider a lot) . Once a week a meal maybe and then once a week takeaway but I suppose that's in the disposable ... I make a larger meals so that it makes either 2 nights of dinners or multiple lunches.

DP - oil and gas
Myself - strategy based role

we are saving quite a lot in time for children and then me going PT :)

Right... so people without children simply cannot have an opinion or have any type of discussions on anything?
I can contribute and discuss the topic without being a parent!

Yes it is about that .... I think someone said it's to do with tax differences but I'm no expert there!

car registration is abit like road tax but has an insurance element also , that's why the other carinsurance is cheaper (which is optional - which I find just crazy!)

Are 'rates' equivalent to council tax? Then yes it's lower...we are over £300 a month for council tax where we live.

A big variable is the exchange rate, so this is a bit meaningless on its own,

Do you both work sweeping the streets and have a 5 bed house on 95% mortgage? And have £5k disposable income?

Or are you both in professional roles that would be on £100k+ in the U.K. and have a 2 bed flat with a 50% mortgage and drive 2 bangers?

It seems there is a huge gap in cost of housing, entertainment, eating out, transport between Sydney and Perth which is often replicated around the world eg London and Newcastle, New York and Ohio - the trick is having a high paid job in a cheap area.

How would your numbers stack up for the equivalent property in Sydney? Also will your cheaper property in Perth likely make the capital investment gains that a similar investment in Sydney might?

I live in London - cost of property is extortionate. My bestie lives in NW England - we bought at the same time (25 years ago) - similar property size fraction of cost. She has always had much more disposable income than me we have similar incomes (even her cleaner costs, private school costs were significantly less). My property has increased in value many many times more than hers (not something either of us predicted or planned) - so I can cash that in but she has made more savings to pension provision so it’s all swings and roundabouts. Also her DC can afford to buy in their early 20s nearby her in the NW whereas mine won’t near me.

It’s variable so I agree with pp London v NW or Sydney v small town

It’s hard even to compare in the same location. To be really specific some people on my street have been here a long time, bought at pretty low rates, are probably mortgage free and can have low income jobs and live well

People moving to area now are younger and often work in city jobs

This happened in last area now here

But overall I think it’s similar. Wages are higher in Aus but costs are high too

All very good points raised above - as I say - I honestly find it fascinating so loving hearing all points of view to be honest

bar those who think non-parents can't have an opinion 😉

Yes - I only sort of converted so the majority audience could understand but I get that it's not fully transferable as such.

I don't want to be too outing but our jobs arnt professional as such (especially not dp) we moved a number of years ago and we're on quite low income with little progression options to be honest we wouldn't have been on much more now.

Energy costs in WA cannot be compared to the free market hoohah on the East coast. We produce enormous amounts of gas but have set in place a policy of reserving 15% for the domestic market. Then we still have a state owned energy producer which has price caps. Gas here is $5.5/ gig whatever vs $40/gigwhatever it is.

www.fuelwatch.wa.gov.au/
rac.com.au/car-motoring/info/how-much-does-car-rego-cost-in-wa
www.cgg.wa.gov.au/Profiles/cgg/Assets/ClientData/LANDGATE_VALUATION_SERVICES_LEAFLET.pdf

I think it would be interesting when people in these different countries go to a 3rd country and then have a discussion about how expensive it is.

So someone from Australia and the UK could go on holiday to Spain. The person from the UK would think it's a bit cheaper but the person from Australia would think it's much cheaper.

And if they went to Norway, the person from Australia would think it's maybe a bit more expensive but the UK person would think it's very expensive.

I think people from Norway and Switzerland can probably have very cheap holidays abroad.

Nice straw man argument there.

Anyone can chat about relative costs, sure. Even shock horror, people without children.

You didn’t do just that though, you wondered why “people think Australia is expensive”. Did you give details of your own significantly above average income vs expenses as evidence to the contrary?

I’m sure recognise that you’re far better off financially than the average Australian, in which case, just own that. Otherwise, I’m left with the impression that you’re wilfully ignorant or hard of thinking.

I can't comment on cost of polos but my recent smear was free of charge.

How come? Do you have private health care?

I've googled a random primary school in WA and one near Birmingham.
UK polo is £7.50 which is $13.10 and WA one is $31 which is £17.75

No? I have a really good bill billed doctor at the end of our road.