A Scottish man recently shared his thoughts on the escalating cost of living in Australia, describing it as “crazy” and raising concerns about his financial situation despite owning multiple properties. This candid commentary was recorded in Sydney by Coposit, a viral property app that prompts individuals to disclose their financial details.
The 48-year-old individual splits his time between Australia, Tokyo, and Scotland and has resided in Sydney since 2000. He considers himself fortunate to have previously earned good money and amassed several properties, yet he highlighted that securing property today is increasingly challenging.
He elaborated on the current economic landscape, stating, “You can choose to pay about $3,000 or $4,000 monthly in interest for 30 years, which compels you to work five days a week.” He pointed out that rental costs are often equivalent to or exceed mortgage repayments, calling Australia a precarious place to live financially. As per Money.com.au, the average new home loan in Australia is approximately $659,992, accruing an average interest rate of 6 per cent. This results in monthly repayments around $3,957 over a 30-year term, which adds to the financial stress many face.
In Sydney for a medical operation, he plans to return to Japan in two months, where his daughter resides. He expressed frustration, stating, “It’s unaffordable here and I don’t want to be spending. You can’t go out for dinner without needing an overdraft. What kind of life is that?” He stressed that he never intended to live in such financial distress, despite considering himself fairly middle-class.
The man also compared the cost of living in Sydney with Japan, stating it was “incomparable”. He mentioned owning an apartment in Japan, located about 30 minutes from Tokyo by Shinkansen, which cost him $50,000. He also highlighted the affordability of food in Japan, where a bowl of ramen costs around 600 yen (approximately AUD $6.30). Although he noted that hotels can be pricey, his housing arrangements in Japan alleviate much of that burden.
Cost comparisons show that living expenses in Tokyo are 18.6 per cent lower than in Sydney, excluding rent, and 29.2 per cent lower when rent is factored in. A meal at a casual eatery averages about $12.70 in Tokyo, while the same meal could set one back around $25 in Sydney. For beverages, a domestic beer costs about $6.35 in Tokyo compared to around $10 in Sydney.
Interestingly, a noticeable trend has emerged: Japanese nationals are increasingly applying for Australian working holiday visas, with 14,290 visas granted in 2023-2024, making Japan the fourth most active country in this regard, following the UK, France, and Ireland. This migration shift is influenced by Japan’s lower minimum wage and lengthy working hours, which can be less appealing compared to opportunities in Australia.
In summary, the Scottish man’s insights herald a growing concern about the sustainability of living in Australia, particularly in Sydney, where soaring costs challenge traditional notions of affordable living. His plans to relocate back to Japan underscore a broader dialogue about cost of living dynamics, as many weigh their options in the current economic climate.
