touchingcloth

Hi all,

This may have been covered before...but lets draw a line under this once and for all!!!!!!!!!

I've read quite a few threads regarding how much this costs over there...and how much that was cheaper back home..blah..blah..blah.

What many of these threads have in common is a serious lack of (mathematical?) understanding on how to compare prices. :scared:

eg..."if a tube of toothpaste costs £1 in UK...and cost $1.50 in Oz....then the toothpaste is cheaper in Oz because at today's fx rate £1=$2.50"

Why do people bring currency exchange rates into the equation?, when calculation should be based on buying power of one's salary in both countries.

The only forumula you need is based on net earnings in UK and in Oz.

So...if you took home £2000 a month in UK and $3000 in Oz...then your factor for comparison is 3000/2000= 1.5.

Multiply this factor with the Uk price of toothpaste (£1x1.5=$1.50).

So now we can see that the COST of toothpaste (based on earnings) in both countries for this particular person is the same.

Obviously...it goes without saying that if you that the more you earn in Oz...the cheaper goods seem...and vice versa.

NOTE!!!!!:::----It is important to compare like for like jobs in both countries.
ie...no good working as a secretary in the UK and then as a lawyer in Oz...and then saying..."by golly....Oz is cheap"

Regards
TC

moneypenny20

I do my utmost NOT to compare anything. I reckon I live in Aus, it's irrelevant how much stuff costs in the UK or how much a job would get there compared to here. It really doesn't make sense to do it.

Des

hello there

well said and well thought thanks for taking out all the generalisations we sometimes get.

TeresaG

Well said.

I'm not in Oz yet but am very careful not to try and compare the prices of things anywhere I go. I just look at the price of something and if I want and can afford it then I will get it. I don't think that I could get it cheaper in another country as I'm not there and therefore can't buy it.

I think you just need to take into account what you earn in the country where you live and then what you can afford to buy.

touchingcloth

Ok...it might not be relevent to you now that you are in Oz...but for all of the people considering moving to Oz...it is ESSENTIAL to compare the cost of living.


For example...

Billy Bananachops can only eat bananas ..and can afford to eat as many as he likes in the UK.

Billy looks into emmigrating to Oz...but would only be able to afford to buy 1 banana a week in Oz....then....Billy would be a very hungry man in Oz.

Billy therefore decides that he cannot afford to live in Oz...and decides to stay in the UK.

MartinLuther

Which leads to the conclusion that neither country is cheaper than the other as it depends on each individual.

Australia_bound?

I don't compare I just wanna know how much stuff costs so I can calculate how much dosh I need in the bank to live off once I get there with no job, no car, no food and no house :scared:

walaj

I can be very mathmatically minded, but at this time of day even thinking about doing something like that makes my head hurt.

Besides there are too many things that will NOT make it like for like - perm in UK, contract in Oz, town in UK, city here (and the most expensive one) blah, blah, blah....

the one thing that is sold here that I use to buy in UK is John Frieda shampoo & conditioner - In uk on offer at boots I would pay £9 for 3, here normal price is $16, $14 on offer for ONE - so I refuse to buy it and have changed to another brand.

but there are more things to worry about than what I could have got it for in UK, as it is an expensive trip back to UK to buy it there.

moneypenny20

But Billy doesn't know how much he is going to earn in Aus, and if he doesn't get his visa for a year, the price of bananas will have come down again and it won't be a problem.

The trouble is when in the UK you are still unaware of rates, utility bills, true earnings, blah blah blah and everything looks cheaper (which is the point of your thread ) but is still an extremely hard concept because it also depends on where you live and where you shop etc. If you go to Geraldton in WA, your annual food bill would be easily twice that than in central Brisbane for example.

touchingcloth

...yes...i.e..your lifestyle/diet.

However...there are somethings which all/most Ozzies need to spend money on..electicity..rates.....etc. ...it is then that one needs to look at how much will be spent in Oz ...AS A PROPORTION OF NET INCOME

touchingcloth

Obviously one can never be spot on about cost in Oz...but then again..how many of you budgeted to a tee while in the UK?

but if you DYOR...you can get a good idea...which is a darn site better than saying "I don't compare....no point"

And there is PLENTY of info out there for those willing to do the research.

touchingcloth

...there is no such thing as a permanent job.

whats the deal with shampoo in Oz?.....is it becuase Ozzies tend to have longer hair than UK people...therefore using more...= more demand

Can you get the equivilant of Tesco's 49p 2 in 1 shampoo out there?

TC

The Crow

I do realise this - but just to be irritating, our factor for multiplying is 2.5

thebears

Why not keep it simple and apply a percentage of your costs against your net income and compare this against similar in UK?

I would speculate and assume that some items will be higher and some will be lower - as long as overall its lower.


30% Rent/Mortgage
15% Utilities (by detail)
10% Food Shopping (by detail)
etc

Kiwi

touchingcloth

yes....or it can be done this way.
However...as I'm a sucker for detail...I'm trying to collate as many prices as possible on a spreadsheet...and then I can see how we will be chaning our spending habits.

Should we get to Oz, I've promised my wife a banana for her birthday.