The general cost of living has increased steadily over many decades. Over that time, the largest contributors to household spending has changed. So what are the the biggest living expenses?
According to the Australian Bureau of Statistics (ABS) the three biggest living expenses incurred within a household are:
- Housing – 20%
- Food – 17%
- Transport – 15%
Does that surprise you? Or is this on point with your budget?
Taking note of the ABS data, in 1975, the biggest living expenses were food (20%), followed by transport (16%) and housing (13%). The three largest are still the same, but the order has dramatically changed with housing taking out top spot.
Energy/Utility costs is another contributor, and many are concerned about this increasing further. As the property median prices increase, the above expenditure may show housing to increase higher.
The housing market has witnessed a downturn in property prices, but many indicators demonstrate this trend has bottomed out or near bottomed out. Housing is an essential part of living and shouldn’t be taken lightly. In saying that, purchasing the right property is critical. Buying within your means, sourcing a property in a great location and buying a something that will last long term is key.
At Crest Property Investments, we specialise in sourcing new and off the plan properties for buyers. Don’t look to buy an old second-hand home that will cost you more as it ages. Look to invest into a brand new property that will incur low maintenance and make you feel good about yourself. Property is a big investment and it will consume most of your income over any other expense. Buy what you’ll love rather than settle for second best.
If you want to make your next move, please don’t hesitate to contact us.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
July 2019
