Let’s face it, inner city living comes with more than its fair share of advantages.
There’s the proximity to decent coffee and the ability to walk home from the pub on a night out rather than pay a small fortune for a cab. For many people, it means you’re just a hop, skip and a jump from the office. Living close to work isn’t just about being able to stay in bed that little bit longer each morning (although that is definitely a bonus). It’s a lot more important than you may have realised.
A new study from the Committee for Perth has revealed just how much money you can save by living closer to the city centre.
Called “Cost of Living, What is your commute costing you?”, the report shows how driving from somewhere like Joondalup — about 25 kilometres from Perth, will cost you up to $22,306 a year. Even driving from suburbs relatively close to the city, say five kilometres away, costs commuters more than $9000 a year. That’s including everything from fuel and servicing to car registration and insurance.
The cost of your commute is something to bear in mind when you’re buying a home. In fact, Committee for Perth chief executive Marion Fulker put it in precisely those terms.
“If a two person, two car household went down to owning one car and used public transport to travel 15 kilometres to work, they’d save more than $19,000 a year, which is enough to make the repayments on a $200,000 loan,” she said.
Mrs Fulker said that if a household is saving $19,000 a year they could also pay off a median priced home loan of $508,500 in approximately 14 years rather than 30 years and save more than $336,000 in interest.
“A lot of people live in Perth’s outer suburbs because it’s where they can afford to buy a home but they don’t take into account the ongoing cost of driving to work every day,” she said.
“If you live five kilometres away from the central business district rather than 25 kilometres away you could save $6344 a year, or $122 every week, on travel costs.”
So imagine what you can save by living centrally and walking to work? If you’re not much for walking – especially when you’re dressed for work – you can jump on a bus within Perth’s Free Transit Zone and your commute still won’t cost anything.
With the cost of fuel set always rising and set to go higher (up 67 per cent over the past 10 years according to another Committee for Perth report) and congestion on the freeway growing worse and worse, it’s also worth looking carefully at the maths when you’re considering where to buy a home.
If you’re keen to give the daily commute the flick and spend an extra half-hour in bed, Psaros has a range of centrally-located developments in Perth. Have a look at our current projects or give us a callShare on Twitter Share on Facebook