How to save $$ for newcomers in Melbourne PART 1
Melbourne is one of the most livable cities in the world. Previously, Melbourne had been named the most livable city in the world for 7 consecutive years. Currently being ranked 2nd, Melbourne boasts of plenty of benefits: great public transport system, plenty of jobs, and beautiful weather just to name a few.
While Melbourne is a wonderful city to live in and there are many people moving in Melbourne every month, it is also the 2nd most expensive city in Australia to live in, and also one of the more expensive cities to live in globally. Many newcomers in Melbourne are surprised by the considerably high cost of living in Melbourne. This is more so for those coming from overseas, knowing very little about the cost of living in Australia.
Here I’d like to offer you some tips on saving your hard-earned cash while reminding you of a number of vital factors in choosing the right accommodation and the right location for your move to Melbourne.
Planning your initial move to Melbourne
This is a one-off opportunity for you to save on your moving expenses. Don’t underestimate it just because it’s a one-off expense, every little bit counts. Here are the top 3 money-saving tips for moving to Melbourne:
- Best things in life are free!
There are no reasons for you to spend on boxes upon boxes when you can easily source them for free! - Move during the week:
Almost always this is the case, move during the week and you’ll save money. - Hire local movers:
Hire your local movers to save extra cash. However, make sure that you hire professionals to safely transport your belongings.
Following these basic three tips will make a world of difference for you when moving to Melbourne or even when moving within Melbourne later on.
Moving to Melbourne? Location Location Location!
So you’ve decided to move to Melbourne but where should you settle? Here are a few things to consider for newcomers in Melbourne:
1. Mortgage/rent expenses in Melbourne
Whether you are renting or buying a new home location can significantly impact your purchase price or weekly rent expenses. Unless you’re buying a house outright, you will be paying off your mortgage, so in most cases, it will be beneficial for you to address this recurring living expense early on, whether it is in the form of rent or mortgage.
To give you an idea of how much of difference a suburb can make I’d like to borrow some figures from Rent.com.au. As of April 2nd 2019, the most expensive suburb in Melbourne is Albert Park, with a median rent of $660.
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Source: Australia’s Cheapest and most expensive suburbs revealed – rent.com.au
On the flip side of things, West Footscray’s median rent price is $378.
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Source: Australia’s Cheapest and most expensive suburbs revealed – rent.com.au
2. Melbourne transportation
Ask yourself this question: is it worth saving $100 dollars a week in rent/mortgage for extra 30 min of travel time?
What I’m trying to point out is that there are other important factors in deciding a suburb to live in. Whether it’s time spent on the road, or money spent on public transport, you need to find your “sweet spot.” I have recently moved. I save $30 a week on rent, for an extra 30 minutes of travelling time to work and back.
This arrangement works for me as I travel on public transport and it doesn’t cost me extra in travel expenses other than the increased travelling time. (I get most of my blog ideas sorted out while travelling and do most of spelling and grammar checks, so this really works out for me).
Consider all modes of available transport. Public transport, your own car, pushbikes, or even electric scooter. Find out what really works for you before jumping into signing anything
If you save $40 dollars a week on an option as opposed to another, but with increased travel time and public transport expenses, then you may not be saving as much as you originally thought.
3. Proximity to work and school
Whether you’re a student or have school-aged children under your care, finding a healthy balance between the distance between the school and your work would be of great importance.
Ideally, as a parent, you would want to drop off and pick up your children from school on your way to work and after work, if the option is available. If no such option is available, consider the age of your children in deciding how far you want to move away from the school that your children are attending. If they are older, it is usually okay for them to travel a little bit further.
4. Type of accommodation in Melbourne
Are you moving as a family unit? Are you moving alone and have the option to explore other accommodation arrangements? If you’re moving alone you can explore a few options, living alone in a one-bed apartment or living in a shared house. These options both have ups and downs.
Living with others, you can definitely save money on utility bills and rent expenses while always having a company to hang around with, so you’ll never be alone. However, you won’t get the sort of privacy you would get living alone. Living alone, it may cost you a little extra, but you won’t have to worry about sharing a living space with others. Let’s be honest we’ve all had that obnoxious housemate, you won’t have to worry about them, or worry about items going missing.
At the end of the day, I strongly believe this decision shouldn’t be focused on saving money alone. While it is a great way to save money moving into a share house, this arrangement has to fit your lifestyle and personality above all.