The cost of living in Sydney Australia

What is The cost of living in Sydney Australia?

So you have decided to move to Australia and chosen to make Sydney your new home. well, I want to congratulate you on your good taste, and fun way of living. but I must share with you one very important question I get from new arrivals, and that is: can I afford it? how much does it really cost to live in Sydney? will it be so good I’ll be able to save money? what is Sydney cost? and so on.Sydney cost

When trying to focus on all the expenses you might have, the first course of action to use an MS Excel spreadsheet. this way you will be able to track all the expenses relevant to you, and see what is the overall income necessary for you to live comfortably.

Start by downloading a Budget tool from here: Budget Planner

At the end of this article, you will find many relevant links to help you. 

Sydney cost item #No 1 – Rent/Mortgage:

This is the most significant item on your list with regards to Sydney cost, so it must be first on your spreadsheet. there is so much information on the web with regards to buying, I’ll leave this to the agent out there. When focusing on rental properties, my advice is to know your budget first. you see the range for rental properties is very big. you must know how much you can spend overall on this cost, so you will be able to move forward.  the range in Sydney depends on the region of your choice, and how far are you from transport. the good/bad public schools in the area, and all sort of statistical and socioeconomic factors: like the strength of the population, pollution, crime and so on. the range here can be sum up for a 2-bed apt $300-$350 to $800-$1,000. You must understand what is most important to you, and live at the best place you can afford. to understand more about rental in Sydney: Read More

Sydney cost item #No 2 – Food:

This factor again is basic in the Abraham maslo pyramid, and, therefore, it is vital to the analysis of Sydney cost. there are many supermarket chains in Sydney, the main ones are Coles, Woolworth and ALDI, there are more, but if you need the best prices you need to focus on that. when evaluating the cost of food, you must be able to construct your own “regular” weekly expense, and try to maximise it by using basic knowledge of how supermarkets works. so begin by going to those supermarkets and write down every single thing that you buy. after a few weeks you will have a picture that represent your true likes about food, now you need to face reality. are the items you like too expensive? can you find the overall category at a better price? you must be very strong here. supermarkets are using the best tactics to make you buy things that you don’t need, they have the traffic, and they use it to “push” items from the shelves to your cart.  the average basket for 1 week for a family of 4 is $800 – $1,200. Here we a bit of a research you can save $400 a week. but you must be disciplined in order for you to be able to win this war. 

Sydney cost item #No 3 – children Education:

This factor is very important when trying to budget the overall Sydney cost. when talking about education, we exclude the cost of uni, because many student can work and help pay for their tuition. The government allow you to get VET HELP loan as well.Sydney cost

When looking at the Sydney cost of raising children, we must review two main costs: The cost of Daycare and the cost of public and private schools.  

The cost of Daycare will only be partially supported by the government and can get to $90-$130 per day per child, depending on the age and location. The cost of school is much more affordable unless you go to the private system. I assume about $500 a year. If you go to the private system, you must pay $25,000 – $33,000

Sydney cost item #No 4 – Health:

In Australia health is very expensive. so this is a very important factor when looking at the overall Sydney cost calculations. The medicare levy is a tax that is being taxed after the income tax by the rate of 1.5%-2%. that alone will only give you the very basic, and usually, you will get some very bad doctors helping you. now there is a very little choice here, although there is a threshold to buying private health 90K per 1 person and 180K for families. But you will find out that almost everything is an out of pocket health cost, that without the proper insurance, your overall cost will be insane. and there is one more problem, the insurance industry made it that every year they will be allowed to charge you 5.25% +/- more from the previous year. so this is a really big problem in Australia. 

So you must first decide how to choose the right cover for you. and then you must compare prices per the conditions you want. remember always compare apples to apples. the insurance industry, do not want to compete in the marketplace, so they are doing everything they can to make you compare apples to pairs. be smart and always ask for the same thing per policy and not what the sale agent want to “push” you. 

Sydney cost item #No 5 – Transportation:

This is an expense that you take into account. looking at the overall Sydney cost calculations. when talking about transportation, there are two things you must consider. one is you’re going to work expenses and the other is your leisure time transportation.

When talking about using public transport, we must refer to the fairs of the Sydney trains and Sydney bus. the major factor here is how far are you from your place of work? is it easy to use public transport to that location?

When talking about your personal transportation, you need to examine what is the overall budget you can afford and try to find the best car possible for you. needless to say, a car comes with extra costs attached: maintenance, and day to day operation of the car – fuel. 

When you’ll know your budget, you will be able to make a decision based on that with regards to which car to buy. 

Sydney cost item #No 6 – Home & Utilities:

The basic expenses that make your house run are significant when looking at the overall Sydney cost calculations. here there are many different expenses like electricity, Gas, water, internet, TV, mobile, Furniture & appliances, Home phone, and many others. when calculating the overall expense we must be as precise as we can, we must compare prices and we must understand what we can afford to have and use on a weekly/monthly basis. 

At this item, we must take into consideration a one-time expense to buy all the relevant utilities like microwave, fridge, washing machine, furniture, beds and so on at an overall cost of between 3,000 – 10,000 depending on your budget. 

Please see the pre-filled attached Ms Excel file to see the overall forecast – based on a family of four. all you need to do is adjust your overall usage to fit your specific situation and adjust the cost up or down. make sure you understand, there are many option with regards to the internet, mobile, insurance and so on. the biggest challenge is to be alert and understand how your choices impact your personal bottom line. whatever you do aim at being on the black, and not on the red.