the troubadour

Surely the cost outside of perhaps housing is far too high? Purchasing power is 23.97% lower than Perth.


The cost of living appears to be only 8.3% lower than Sydney.


This was brought home recently by a couple from here in Perth, that recently travelled by van in Tasmania and found it very expensive.


One would have thought with such high levels of un/under employment and people on various welfare categories, that prices may, at least in part, reflect less than affluent circumstances for large numbers within the population. It appears not.


One can see why young leave that state. Probably fine for cashed up mainlanders, whom can live out their lives in quiet solitude, at least compared to Melbourne or Sydney. But those prices are hardly reflective of the economy and ability to sustain a standard of living for those without well paying jobs.

Moses2013

Like any smaller island most products have to be shipped, so these will always be more expensive. Somebody visiting from mainland will notice that but what people saved on before was housing. While someone in Melbourne might pay less for shampoo and beer they are already spending 30% of their salary on rent. Outside Hobart it's less than 20% + you have a bigger garden to grow your own food. Unfortunately that's now changing and Hobart is unaffordable for locals too.


At the end of the day everyone has to decide what it's worth to them. Sometimes it's not only a salary, weather or affordability that makes a place attractive.

the troubadour

I'm sure you are right. Does give one cause to wonder on the direction Australian cities are going though, is even Hobart, is becoming too expensive for locals to buy into. A very unhealthy turn of events in my view.

Beoz

Cost of housing is reflective of what people can afford. Tasmania is cheap because salaries are shit. The ABS has the average salary for Hobart over 20% less than Sydney.

Jaws drop in Tasmania when I tell them what my monthly Sydney mortgage is. But I still go on European ski trips. They don't. Too busy buying over priced shampoo and saving to retire at 55 because they hate their government jobs I guess.

That's not a life I would want to lead. Each to their own I guess.

Moses2013

There are always two sides to a story and I suppose it also depends on your spending habits. I don't know if cost of housing is reflective of what people can afford, because what I can see is that most people are paying huge mortgages until they are 65 and relying on the high paying job they currently have. The market can change at any point and that job is no guarantee either.




If you look at IT industry salaries in Europe compared to Australia or US, all people in Europe would seem poor. It just depends how we want to live and what makes us happy. If the people in Tasmania want to save and quit at 55 why not.

Clacfart

Perhaps the UK doesn't get enough credit from the people that live here?

the troubadour

Quite so. Great idea to retire early if at all possible and follow the life you wish and can, of course afford, with work imposed restraints.


No reason at all why people should become mortgage slaves in order to own an over priced pile of bricks before they die.


Nothing at all clever having a hefty mortgage in my view, but housing has the status of a religion, almost in Australia, so hard to argue with 'the believers' as it is with any holders of a faith.


No one knows how long the great housing casino will go on, frankly its such a boring subject to talk about.

Moses2013

Slave is a good point. Many people just want an affordable home and don't want a career until they are retired. The professional person in Sydney might live in a expensive penthouse but has a huge mortgage and will have to rely on that career to afford it. The person in Tasmania might just be happy doing any job (even cleaning) but is much happier overall.




Increasing wages can also be a problem. It's already happening that in some parts of Australia wages are too high to be competitive. What can happen is pretty clear.

Beoz

You mean like Perth?



That's the point isn't it. When the high paying jobs go away, that dictates the price. And in Perths case, they fell like a lead balloon.

Perth just emphasises that. People drive the price with what they can afford.

In Tasmania, the affordability factor is low, really low, because people get paid so poorly.

If people want to retire at 55, also fine with me, but that would indicate people are not happy in their job and they want out ASAP. Bit of a shame to spend years and years doing something you hate.

Moses2013

Well maybe they hate the job but they just do the job to have more time for hobbies they like or to finance it. No doubt that some people love their job and their career is everything to them but most people work to retire.


There are only a few people who manage to have it all and make a career with their hobby. I suppose it's just the world we live in and simple things have lost their value.

the troubadour

Only dullards in the main would claim that their career is everything. Perth mortgagees still have to pay the banks regardless of falling house prices.
The same will apply in other cities when prices find a resemblance of reality.
In a time of low interest rates that is driving the market it is only in part what one can afford. Too many are a pay cheque or two away from serious problems. Any fool can buy into an inflated market at such low rates and heavy encouragement. It's keeping the pile come a change in circumstances both on a personal and national level.

Moses2013

[QUOTE=the troubadour;12403375]Only dullards in the main would claim that their career is everything.QUOTE]

Must be a sad life if wearing a suit & tie when it hits 30 C is the only thing you enjoy. Today: Hey look, I work for a trendy software company and its' so awesome. I can stay there for 12 hours and get a free sandwich. I don't care that I can only afford a small studio apartment with a very small kitchen (microwave) because it's just for sleeping anyway + who needs a big kitchen if you get a free sandwich.

Beoz

And there lies the problem with Tasmania. Jobs lack such variety, and financial benefit, that people work to retire.

So sad.

Beoz

They don't wear suits at trendy software companies.

For a young developer who does put in 12 hours a day (and the rest) at a trendy software company is not in it for a free sandwich. They could buy the whole sandwich shop.

But yes who does need a kitchen when you can afford to eat out for every meal.

Moses2013

The suit wasn't in relation to that but I doubt a young developer can buy a sandwich shop these days. I know that some of our developers in India get roughly €1000. Even for a city in India not enough to buy the sandwich shop.