Navigating Costly Sydney

Sydney, the capital of the state of New South Wales, may be the costliest city in Australia, but by global standards, it is becoming more affordable. The depreciation of the local currency has caused Sydney to fall six places to 16^th in the Economist Intelligence Unit’s most recent Worldwide Cost of Living survey, which is designed to help businesses calculate cost of living expenses for expatriates. The index compares the cost of 160 items such as food, transportation, rent and utilities in 133 major cities worldwide, with the top city in the ranking being the most expensive. According to this survey, living in Sydney is now less expensive than living in Los Angeles, Paris, Copenhagen, New York and Seoul.

Expenses

Prices still remain high in Sydney compared to the rest of the world. Costs for alcohol, clothing, recreation, personal care, transportation, housing, restaurant meals and communication services, such as mobile service providers and internet subscriptions, are all comparatively very high, Xpatulator reports.

Some Typical Costs in Sydney

Source: Expatistan

NSW TrainLink operates the public transportation network that serves New South Wales. Fares in Sydney are calculated based on distance traveled, mode of transport and method of payment. The Opal smartcard ticketing system can be used for trains and buses serving Sydney, the Blue Mountains, the Central Coast, the Hunter Valley and the Illawarra region. It offers cheaper fares and daily and weekly fare caps. The weekly cap for travel using metro, train, bus, ferry and light rail services is 50 AUD, while the daily cap is 16.10 AUD.

Housing

Housing in Sydney is the most expensive in Australia. In fact, the city is “severely unaffordable,” according to the Demographia International Housing Affordability Survey.

Still, housing costs vary according to location, and the variance can be dramatic. Sydney is more expensive than its suburbs or other areas of New South Wales.

Renting

Rental housing is not only expensive, it also can be difficult to find. Rental properties are advertised online and in newspapers, but they are snapped up quickly. Realestate.com and Domain.com are good places to start looking. It is best to arrange a rental through a real estate agent; beware of unregulated, private rental agreements. Leases can be written or verbal, but the former is recommended.

In most cases, one month’s rent plus a security deposit (bond) are required in advance. Be sure to inspect a property before signing a lease. The physical condition of the property is recorded in a condition report completed by both the renter and the landlord, or the real estate agent.

The median weekly rent in Sydney is currently 582 AUD, down by 3.1% over the past year. However, rents vary by locale. In general, the further you are away from the central business district (CBD), the cheaper the rent.

Most Affordable Suburbs within 10 to 20 kilometers (6 to 12 miles) of the CBD

Source: openagent/Domain

Most Affordable Suburbs further than 20 kilometers (12 miles) from the CBD

Source: openagent/Domain

Apartment sharing is an excellent way to live more affordably. Websites such as Flatmate Finders and Flatmates advertise apartments and houses to share. Social media sites also are good resources. Rental rates for shared apartments (or flats) vary a good deal, depending on location, size and type of arrangement. Some other affordable options are hostels or guesthouses, and homestays.

Typical Rents in Sydney’s Inner City

Source: Insider Guides

Note: Renters are usually responsible for paying utility bills in Australia, including gas, electricity and water.

Buying

Buying a house in Sydney remains prohibitively expensive for most foreigners. A recent study found that a household in Sydney would have to earn around 160,000 AUD per year to afford a detached home at the lower end of the property market.

A recent analysis predicts house prices will grow by 6% over the next two years, while prices for apartments will remain about the same.

The median house price in Sydney is currently 1,032,338 AUD, and the median price for an apartment is 688,652 AUD.

Sydney’s ‘more affordable’ neighborhoods are in the outer western suburbs. But it is important to keep in mind that affordability is relative.

Most Affordable Suburbs

Source: openagent/Domain

Follow @goinglobal Tweet to @goinglobal