Sydney “monster” mortgage repayments killing the lifestyle
Article by Roisin Kelly-Goldsmith
Sydney is the worst capital city to live in if you want extra cash for things other than the bare essentials, data analysis from Mozo has revealed.
To find the city friendliest on the hip pocket, Mozo compared the cost of living against average household incomes. Expenses factored in the analysis included typical yearly costs such as utility bills and mortgage repayments.
While Sydney household salaries sat mid-range among Australian cities, sky-high mortgage repayment figures dragged it down to last place in lifestyle-friendliness.
Mozo Director Kirsty Lamont said Sydneysiders are doing it tough because on average they are paying nearly $50,000 in repayments per year.
“These monster mortgage repayments don’t leave much money for other financial priorities like super contributions, stashing cash in an emergency fund or insurance, much less lifestyle luxuries like new cars or an overseas holiday,” Lamont said.
The data highlighted a grim reality for Sydney households who could potentially save $39,903 each year, compared to $82,156 if they lived in Perth.
Perth won the crown for the lifestyle-friendly capital of Australia due to Perthians having the highest income and average mortgage repayments $5,000 below the national average.
Lamont’s advice for Australians wanting to lead a better lifestyle in any city is to shop around on the home loan front.
By Mozo’s calculations, refinancing from the average variable rate to the best fixed rate could save around $5,000 over three years on a $300,000 loan.
If you’d like to do some refinancing calculations of your own, try this easy to use “switch and save” tool for savings figures.