Time to read : 6 Minutes
As someone who’d lived in Sydney for the majority of my adult life, I had pretty much given up on owning a house. In my early thirties, I was still renting, and loved my lifestyle living in Sydney’s northern suburbs.
But like many people, I lived through the pandemic lockdowns in Sydney too, in a one bedroom apartment with my partner. That gave us both the opportunity to save up some money, but also to consider what we wanted in life. We started to think about the idea of moving to buy our first home, somewhere that offered a lifestyle we would love, with a real chance of getting on the property ladder.
So… we ended up moving to Adelaide and bought a property that ticked our checkboxes while giving us a financial leg up that we could have never achieved in Sydney. I’m going to share some of my learnings.
How to select your new location
Finding somewhere new to live is a huge decision and it can be quite overwhelming when you start. If you have friends and family in a different state or regional location, it could make the choice a little easier. But if you’re making a decision independent of those factors, here’s what to think about.
Employment
I was lucky to have a job with offices in other states, making it easy for me to transfer and keep the cash flowing in while my partner found a new job. Not only does finding employment mean a lot for your financial future, your ability to get a mortgage will also hinge on it.
In my case, our lender considered my ongoing employment as the only way we could service a mortgage, in other words afford the repayments.
Lifestyle
It’s easy to underestimate how much change a move can have on your life until you do it. If you’re already making a big location move, it’s a good idea to try and align some lifestyle factors.
For example, if you’re a foodie and love eating out, find a location that showcases local produce and has diverse dining out options. If you get a buzz from catching waves, move somewhere coastal. Being able to bring these parts of you along to your new home will help ease the transition.
Budget
There was a time when moving outside of Sydney or Melbourne automatically meant finding a cheaper property, but with property prices rising around the country, that’s less of a guarantee now.
In my case, Adelaide’s market was heating up as we were trying to buy, which meant moving much further out from the city than we had expected. Do your research to inform your location decision. Looking at recent sales can give you a good idea of the current market and if it’s within your means.
Be aware: buying in another state when you’re located elsewhere can be tricky. Being based in Sydney and finding a conveyancer that wanted to deal with the property market in Adelaide was harder than I expected. Dealing with the entire buying process over the phone or email added a certain level of stress!
The costs you don’t think about
Property prices are only one part of the decision when you plan a big move to get on the ladder. There are several other costs that can impact your financial future.
Cost of living
The cost of living pressures aren’t just for those living in capital cities, in fact they can be worse in regional areas or smaller towns. That’s because you may not have as much access to everyday conveniences city folk take for granted.
For example, there may only be one supermarket in town so they could charge a lot more for your almond milk. The other option could be to drive for half an hour to the next town to shop at a supermarket giant. This can then cost you extra in fuel… and your time.
Change in wages
The number of job seekers, qualifications, or roles available can all have an impact on the wages for different jobs. Just because you were earning a certain amount in Sydney, Melbourne or where you currently live, doesn’t mean you’ll get that same salary if you move.
The other consideration is whether there are employment opportunities for your line of work. For example, corporate, academic or specialist healthcare roles may be scarce outside the big cities. With less employment prospects for your line of work and lower salaries, you may even need to change careers.
Do your research through platforms like Glassdoor and SEEK to give you a guide on wages and employment opportunities.
More travel
Moving away from friends and family will mean travelling whenever you want to visit them, which will cost money and time too. In some locations, unreliable flights can also mean you may have to book accommodation before big events like weddings to ensure you’ll arrive in plenty of time.
It’s a similar story if you want to travel overseas. You’ll need to tack on an extra flight (or another form of travel) to connect to your international flight that departs from a major city centre. This adds to your travel costs and extra hours to your travel time.
Renting vs buying
While the idea of moving away to get on the property ladder has become increasingly normal, renting can be a lower risk way of trying before you buy.
But smaller areas usually mean a smaller range of rental options. Rental affordability is an ongoing problem in Australia, and you can’t necessarily expect a different location to have a cheaper rental market, as it’s often driven by supply and demand, and in some regional areas there’s hot demand.
If buying a property is on your wishlist for the future, but you can rent somewhere first, it’s a great way to try an area before you make a major financial commitment, and most importantly you try the lifestyle like a local before signing up for home ownership there.
Thinking long-term
Before we moved to Adelaide, I didn’t consider how easy life was in Sydney. I lived within walking distance of a major hospital and enjoyed public transport links. There were loads of cafes around me, and if I wanted to, I could walk to my office in the CBD.
When we bought in Adelaide’s north eastern suburbs, I knew I wouldn’t be able to walk to work like before, but I didn’t think about the other day-to-day things that would change.
I have one coffee shop within walking distance, but if I’m being honest, it’s about a 40-minute round trip. We have a local supermarket, but it’s up a significant hill, which makes carting groceries home quite difficult, especially if the weather isn’t great.
We checked public transport routes before we bought, but with only one bus route within walking distance, I no longer have flexibility when commuting.
We’ve adapted to these changes. We cut back on buying coffees and invested in a coffee machine. I do a weekly grocery shop to justify driving the small distance. These little changes help our back pockets.
But when I was diagnosed with a chronic health condition, it was the pressure facing South Australia’s healthcare system that really highlighted how different our new circumstances were.
This isn’t something I had even considered before we chose our future home, but if you’re on the hunt for your forever home, it’s worth thinking about how your life could change in the next few years and what impact that would have on you.
Bottom line
For many Aussies looking to buy their first home or stuck in the rat race of life in a city hub, the idea of a move to a regional location or even another capital city is incredibly tempting. Many stories we see about tree or sea changes are sold as chances to get back to the things that are important to us, reconnect with nature, or embrace a slower lifestyle.
These moves can absolutely deliver those things if you plan correctly, but it isn’t a decision you should make quickly. Moving to Adelaide allowed us to plan a better financial future in our 30s and beyond, but there have been sacrifices, many of which I never expected.
Building a strong financial future will likely require sacrifices no matter where you live, but if the options are better in a different location, you might be able to reach your financial goals sooner than you could in the city.
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Financial disclaimer
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.
