Australian dollar worth more than U.S. dollar?

Question

I think living in Australia would be wonderful. And in the future I'm thinking of actually leaving the U.S. for Australia either to Sydney or Melbourne. (I'm only 18 years odl at the moment. And still in High School. I'll graduate this coming June.) And I'm wondering would one be able to survive living in Sydney or Melbourne with $350,000-500,000 U.S. dollars? Could one be able to buy a "mansion?" in sydney or melbourne?

Answer 1

It depends, by live in Australia, do you mean simply using that money to buy a house and then finding a source of income, or would you intend to survive on that money for a period of time?

Given the exchange rate, (which was far more in favour of the US until recently) you would end up with around AU$635, 550.

With the average "middle class" income at about AU$50-60,0000 per year, this would give you about ten years of living a middle class lifestyle - that's without purchasing a home.

House prices in Sydney and Melbourne are quite high (Sydney higher than Melbourne). The median house price in Sydney is about AU$520,000, plus associated stamp duty and taxes, legal fees, and any banking fees you may incur. In addition, you would be liable to pay council, land and water rates for the property, which vary but would be up to (and maybe over) AU$3,000 per year.

This would not buy you a mansion by any means. Until about ten-fifteen years ago, you could buy houses for considerably less than that, but the housing boom in Sydney means that the cost of housing is basically unaffordable for many people. Housing under AU$600,000 in Inner Sydney would consist of small terraces, generally only one or two bedrooms with a study. You could get some of the higher-end units, in exclusive buildings in the CBD, but not on the harbour. Further out you could find standard family homes for a similar price, with a larger yard and more rooms. If you were to buy on the very outskirts of the city you might get farmland with a large family home, or possibly an older house which could be considered a "mansion", but much more in the style of a country house than a new place with marble staircases and that kind of thing.

You could expect to get better value for your money in Melbourne but still no mansion. You might spend about AU$300-400,000 to get a small terrace in the Inner city. Spending under AU$600,000 might get you places in nicer locations in Melbourne than you can afford in Sydney, or maybe an extra room or bigger garden etc.

Why do you want to move to Australia? You say you think it would be wonderful, what gives you that impression?


Em

Answer 2

A mansion? No, $US500,000 wouldn't buy you a mansion. At least not in Sydney. The housing market here isn't great for buyers right now.