Financial Advice For Moving From Sydney To Brisbane

Property

Making the move from Sydney to Brisbane has recently become a popular trend.

It makes sense given the skyrocketing costs of living in Sydney. Brisbane was named one of the top 25 most livable cities in the world by Monocle Magazine in 2017 and making this move has the potential to put some extra money in your wallet.

When analysing these two markets, the substantially less expensive housing market in Brisbane stands out as a way to save money and enables people to have the freedom to put it where they want. Additionally, the costs of living in Brisbane are substantially lower as well.

Our tips below highlight and specify how making the move from Sydney to Brisbane will save you money while going into ways you can reinvest your savings to further your financial goals.

Costs of Moving

There are a variety of costs associated with moving from Sydney to Brisbane. The average cost of moving from Sydney to Brisbane is $2,630. These costs are usually made up of cleaning fees, storage, transportation, and other miscellaneous fees you may incur.

Other factors to keep in mind include the size of your family, whether you have any pets, and any intermediary housing expenses such as hotels that may be faced.

However, these costs are quickly recovered by the savings you’ll see in Brisbane, both in housing costs and the general cost of living.

Differences in Property Prices

The median house price in Sydney is an astounding $996,000, while the median house price in Brisbane is a much more affordable $512,000. This amounts to a 64% decrease in housing costs.

If you previously owned property in Sydney, purchasing a new property in cash becomes an option, which can be very beneficial when eventually planning for retirement.

On the other hand, if you were renting in Sydney, home ownership is a very viable reality in Brisbane, where you can find a suitable mortgage package that fits your needs.

Overall, the differences between these two housing markets are unbelievable. Sydney’s soaring housing prices force many into taking on mortgages with extravagant interest rates and makes finding affordable, quality renting options hard to come by.

In Brisbane, these are non-issues, with a housing market that reflects a quality, affordable city to live in.

Differences in Living Costs

The living costs of Brisbane are also much lower than that of Sydney.

By moving to Brisbane, you’ll see consumer prices that are 12% lower, food prices that are 5% lower, and an overall 7% increase in your consumer purchasing power.

When looking at the differences in living costs, you should also consider any adjustments in the pay grade of your industry that may vary from region to region.

There are a variety of large firms in Brisbane in the banking, tech, and other global business industries that are looking to grow and expand in the area.

Though the salaries offered might not be as high as those in Sydney, it is important to examine them in relation to the costs of living in order to ensure that you’re making a practical financial decision.

If you are making the move as a part of your job, inquiring about a relocation package could be worthwhile, as employers will often provide assistance selling your property or assisting with moving costs.

You’ll also have to decide how to approach the opportunity cost of taking time off during the moving process, which can take anywhere from a few days to a few weeks.

While these overall decreases ensure that you’ll see a higher standard of living in Brisbane, they also free up funds for wealth management or other investments.

The savings you’ll see from living in Brisbane makes it possible to aggressively pursue both your immediate and long-term financial goals.

The Benefits and Negatives of Renting vs. Owning

When making your move, you’ll also have an important financial decision to make that can have a tremendous impact on your finances both now and later down the line.

While many people believe that owning property is the universally better decision, this is not always the case.

At My Wealth Solutions, we examine each situation case by case when giving financial advice, as sometimes, it can be advantageous to rent as well.

Stability or Flexibility

One of the first questions to answer when making this decision is whether you’re looking for stability or flexibility.

While owning a house does provide stability, it is not a liquid asset, which means that it can be difficult to sell and is reliant on how the housing market is doing.

This might already be affecting you during your move if you own and have yet to sell your property in Sydney.

Until you can do so, it is important to consider that you may be paying multiple mortgages as an additional expense of the move.

Renting, however, provides you flexibility based on your leasing agreements that houses cannot provide and may be a better fit for your current situation.

Homeowners also face additional costs that renters do not. These include fees such as Homeowner’s Association dues, property taxes, garbage and recycling services, various types of homeowners insurances, as well as the interest paid on a mortgage.

These fees can add up so it is important to fully assess your financial situation, your monthly income, and budget before deciding to commit and invest in home ownership.

Financial Predictability of Renting

Financial predictability is another benefit that comes with renting.

All of your costs are fixed based on the terms of your leasing agreement and your renter’s insurance. For example, you do not have to bear the costs a leaky pipe causing water damage to your ceilings or floors; your landlord will manage these expenses.

On the other hand, you, as a homeowner, are responsible for all of the miscellaneous additional expenses that come along with maintaining a house. This can include simple services such as yard maintenance to costlier expenses such as plumbing and roofing.

When examining Brisbane’s real estate situation, there is one thing to note: it is a market on the rise.

As such, many would say that it is advantageous time to invest in buying a house, as you’d reap the benefits of the property appreciating.

There are expenses that come along with this such as an increase in property taxes. Additionally, the market might not grow as much as predicted, potentially limiting your return on investment as well.

Fitting With Your Lifestyle

Overall, homeownership is not a decision to be made strictly by viewing it as an investment, but also by how it would affect the lifestyle you currently live.

But while your situation will always be dynamic, there is a constant in the market right now.

The cost difference between Sydney and Brisbane is substantial and making the move, if it fits with your lifestyle, is a pragmatic financial decision that will enable you to create savings and leverage your finances. Helping you reach your financial goals and dreams down the road such as home ownership, business ownership, retirement, or investments.

What to Do with Your Savings

Moving from Sydney to Brisbane will allow you to grow your savings through a number of financial channels.

Because of this, you’ll be afforded a lot more financial freedom and have the option to proceed with your newly found savings in a variety of directions.

My Wealth Solutions is experienced in developing financial plans that are tailored to our clients’ needs.

Our process is hands-on and we will work with you, both over the phone and in-person, to create a plan that is centred around your needs. Our highly personalised financial planning processes are made just to reflect your needs and goals.

Create and Grow Your Wealth

One of the best reasons to move to Brisbane is because it frees up money for wealth creation. Deciding to focus on wealth creation now can have very beneficial implications down the road.

At My Wealth Solutions, we have a diverse range of services including financial advice and planning, wealth management and creation, retirement planning, investment advice, taxes, and superannuation and are well-equipped to handle all of your financial needs and to maximise the value of your move from Sydney to Brisbane.

Book your free consultation with one of our financial advisors today to see how we can help you reach your financial goals.

Book Your Consultation Now

A Move Well Worth Making

Overall, Brisbane is one of the best places to move to, not only in Australia but in the world. When doing so is not only good for you but for your wallet as well, the decision becomes a no-brainer.

Not only will you save hundreds of thousands of dollars, but you also put yourself in a more advantageous position to create wealth and fulfil your financial planning goals, whether they include home ownership, business ownership, or developing an investment portfolio.

Moving to Australia’s new world city has never been a better or smarter financial decision.

At My Wealth Solutions, we are dedicated to investing in our clients and a better Brisbane, having gained awards and recognition for our approach that reflects our origins as a family-owned business.

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