East coast vs west coast, how the cost of living stacks up

East coast vs west coast, how the cost of living stacks up

Sydney has topped the charts measuring costs of living in the Oceania region, while Australia’s number two spot was taken by Perth. 

According to data aggregator Numbeo’s annual Cost of Living index, the NSW capital has the 32nd highest cost of living in the world, just above Montpellier in France and just below Stockholm in Sweden.

In the Oceania region, Sydney also outranked the most expensive cites in New Zealand, Hamilton and Auckland.

City Oceania rank World rank Cost of living index Rent index Cost of living plus rent index Groceries index Restaurant price index Local purchasing power index
Sydney, Australia 1 32 90.77 66.43 80.00 85.02 77.09 118.81
Hamilton, New Zealand 2 44 88.09 26.98 58.62 81.69 84.97 128.21
Auckland, New Zealand 3 52 86.93 46.95 67.65 79.21 72.26 99.37
Perth, Australia 4 56 86.24 40.50 64.18 80.79 90.63 130.38
Adelaide, Australia 5 58 86.02 36.56 62.17 82.05 81.67 113.86
Melbourne, Australia 6 64 85.15 44.81 65.70 82.11 77.29 127.15
Darwin, Australia 7 68 84.98 46.52 66.43 82.29 91.79 118.09
Cairns, Australia 8 69 84.98 30.59 58.75 84.50 74.96 118.05
Hobart, Australia 9 82 82.88 31.46 58.08 81.10 88.26 99.40
Brisbane, Australia 10 93 82.17 43.31 63.43 75.42 81.39 130.41

Sydney was found to be more expensive in almost all areas than the next-highest ranked Australian city, with only Perth’s restaurants proving pricier than Sydney’s.

One of the biggest contributors to Sydney’s high cost of living is real estate, with the costs of renting or buying property being significantly higher than those of the next highest-ranked Australian city of Perth:

Cost of living Sydney Perth
Rent 1BD (City) $2618.80 $1658.92
Rent 1BD (Outside city) $1921.12 $1252.76
Rent 3BD (City) $4635.11 $2613.89
Rent 1BD (Outside city) $3096.83 $1748.56
Price per square metre to buy apartment in city centre $13,206.39 $5989.54
Price per square metre to buy apartment outside of city centre $8441.13 $4729.17

 Other cost of living finding from Numbeo include:

  • Sydney may be the most expensive city in the world to be a smoker, with the 1st Most Expensive Pack of Cigarettes (Marlboro) in the World (out of 371 cities).
  • Perth may be the most expensive city in the region to enjoy a drink while dining out, with the 1st Most Expensive Domestic Beer (0.5 litre draught), Restaurants in Oceania (out of 13 cities).
  • Adelaide may be the most expensive city in the region to have a soft drink while dining out, with the 1st Most Expensive Coke/Pepsi (0.33 litre bottle), Restaurants in Oceania (out of 13 cities).
  • Darwin may be the most expensive city in the region when it comes to eating out cheaply, with the 1st Most Expensive Meal, Inexpensive Restaurant, Restaurants in Oceania (out of 15 cities).
  • Cairns may be the least affordable city in the region for cheese aficionados, with the 1st Most Expensive Local Cheese (1kg), Markets in Oceania (out of 12 cities).
  • Hobart may be the most affordable city in the region for dairy enthusiasts, with the 1st Least Expensive Milk (regular), (1 litre), Markets in Oceania (out of 13 cities).
  • Brisbane may be the most affordable city in the region to grab something a bit fancy from the bottlo, with the 1st Least Expensive Imported Beer (0.33 litre bottle), Markets in Oceania (out of 9 cities).

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Learn more about credit cards

How do credit cards work?

Think of credit cards as a short-term loan where you use the bank’s money to buy something up front and then pay for it later. Unlike a debit card which uses your own money to pay, a credit card essentially borrows the bank’s money to fund the purchase. When you apply for a credit card, the bank assesses your income and assigns you a credit limit based on what you can afford to pay back. At the end of each billing cycle, which is usually monthly, the bank will send you a statement showing the minimum amount you have to pay back, including any interest payable on the balance.

How to get money from a credit card

You can get money from a credit card, but generally it will cost you.

Withdrawing money from a credit card is called a cash advance, as it operates more as a loan than a simple cash withdrawal. Because it is a loan, you may be charged interest on your cash advance as soon as you make the withdrawal. Interest rates are also usually much higher for cash advances than standard credit card purchases.

In addition to the interest rate, you may also be charged a cash advance fee. This could be a flat rate, or a percentage of your total cash advance. If you are considering a cash advance, make sure to add up how much it will cost you before committing.

What should you do when you lose your credit card?

Losing your credit card is a serious situation, and could land you in financial trouble. Here is a simple guide detailing what to do when you lose your credit card.

Lock you card – Contact your provider and inform them about your lost credit card. From here lock, block or cancel your card.

Keep track of transactions – Look out for unauthorised credit card transactions. Most banks protect against fraudulent transactions.

Address recurring charges – If your card is linked to recurring charges (gym membership, rent, utilities), contact those businesses.

Check credit rate – To ensure you’re not the victim of identity theft, check your credit rating a month or two after you lose your credit card.

How long does it take to get a credit card?

There are a few stages you need to go through to get a credit card; each one takes a different length of time.

Applying for the card online, over the phone or in person is the fastest step. This usually takes around 15 minutes, provided you have all of your documents handy.

After submitting your application, it usually takes between one to 10 business days for the lender to assess your eligibility. Some lenders offer instant approval, although you will need to send supporting documents before it is official.

Once your application has been approved, expect to wait between one to 14 days to receive your card in the mail. Keep in mind that delays can happen during busy periods, such as if the lender has launched a special deal.

What is a credit card?

A credit card is a payment method which lets you pay for goods and services without using your own money. It’s essentially a short-term loan which lets you borrow the bank’s money to pay for things which you can pay back – potentially with interest – at a later date. Credit cards can also be used to withdraw money from an ATM, which is known as a cash advance. Because you’re borrowing money from a bank, credit cards charge you interest on the money you use (unless you repay the entire debt during the interest-free period). When you apply for a credit card, the bank gives you a credit limit which sets the maximum amount you can borrow using your card. Credit cards are one of the most popular methods of payments and can be a convenient way of paying for goods and services in store, online and all around the globe.

How do you apply for a credit card?

You can apply for a credit card online, over the phone or in person at the bank. Once you’ve compared the current credit card offers, the application process is quick and easy. Before you get your application started, you’ll need to gather your personal information like proof of ID, payslips and bank statements, proof of employment and details of your income, assets and liabilities. To be eligible for a credit card, you’ll need to be an Australian citizen over 18 and earn a minimum of $15,000 each year. Once you’ve applied for a credit card, you should get a response fairly instantly. If your credit card application has been approved, you should receive a welcome pack with your new credit card within 10-15 days.

How to pay a credit card

There are a few ways to pay a credit card bill. These include:

  • BPAY - allows you to safely make credit card payments online.
  • Direct debits - set up an automatic payment from your bank account to pay your credit card bill each month. You can choose how much you want to pay of your credit card bill when you set up the auto payments.
  • In a branch.
  • Via your credit card provider's app.

How do you pay off credit cards?

The best way to pay off a credit card bill is to set a realistic spending budget and stick to it. Each month, you’ll get a credit card statement detailing how much you owe and how long it will take to pay off the balance by making minimum repayments. If you only make the minimum repayments, it will take you years to pay off your outstanding balance and add extra costs in interest charges. To avoid any extra charges, you should pay the entire bill. 

How do you use credit cards?

A credit card can be an easy way to make purchases online, in person or over the phone. When used properly, a credit card can even help you manage your cash flow. But before applying for a credit card, it’s good to know how they work. A credit card is essentially a personal line of credit which lets you buy things and pay for them later. As a card holder, you’ll be given a credit limit and (potentially) charged interest on the money the bank lends you. At the end of each billing period, the bank will send you a statement which shows your outstanding balance and the minimum amount you need to pay back. If you don’t pay back the full balance amount, the bank will begin charging you interest.

Monthly repayment

This is how much you can afford to pay on a monthly basis off your credit card. You can enter any amount you wish; but to make the balance transfer worthwhile the default is $200.

Are there credit cards for students?

Yes, there are credit cards available with students in mind. These can help young Australians to build their credit report and learn crucial life skills around budgeting and managing personal finances.

Which credit card has the highest annual percentage rate?

The credit card market changes all the time, so the credit card with the highest annual percentage rate is also liable to change.

Keep in mind that credit card interest rates are expressed as a yearly rate, or annual percentage rate (APR). A low APR is generally good but also consider:

  • There can be different APR's for each feature of the card (e.g. purchases may have an APR of 14 per cent, while cash advances on same card could have an APR of 17 per cent.
  • Credit cards with a variable rate can change throughout the year, affecting your APR, so check the full details.
  • If you pay your balance in full every month, having the lowest APR is not as important as the other fees associated with the card. However, if you carry a balance from month to month, then you want the lowest APR possible.

How do you cancel a credit card?

It’s important to cancel your old cards to avoid any additional fees. Unless you’re doing a balance transfer, you’ll need to pay the outstanding balance before you cancel your credit card. If you’ve opted for a card with reward points, make sure you redeem or transfer the points before you close your account. To avoid any bounced payments and save yourself an admin headache, redirect all your direct debits to a new card or account. Once you’ve done all the preparation, call your bank or credit card provider to get the cancellation underway. Once you receive a confirmation letter, destroy your card and make sure the numbers aren’t legible.

What is the lowest monthly repayment on my credit card?

As a rule of thumb, this tends to be around 2-3 per cent of the outstanding balance. You can choose how much you want to repay each billing period as long as it is higher than this minimum required amount.