Published at: 8/26/2016 10:42:59 AM
Like to live in the city but can’t afford the prices? Try this important tip to boost your budget.
First home buyers often head to the outer ‘burbs where property prices are more affordable. But it can be a case of false economy. That’s because you’re almost certainly going to need a car – and on top of the costs of owning a vehicle, lengthy commutes can mean an inflated fuel.
That makes it worth crunching the numbers to see if you could afford a place close to the city simply by taking one important step. Ditch the car.
Think about it. Car-free living can see you save not just thousands of dollars – but potentially, tens of thousands of dollars each year. Check out the evidence.
Pocket an extra $144 in weekly savings
It’s no secret that our cars can drive a big hole in our budgets. As a guide, one leading motoring association says a budget-friendly small car could set you back $144 in weekly running costs. Drive a medium-sized vehicle and the weekly bill can turbocharge to $225.
That’s a truckload of cash. And it adds up over time.
The same motoring authority reckons the cost of owning a light car can stack up to about $41,849 over five years, or around $61, 941 for a medium vehicle.
Here’s the thing. That’s money you could be using to pay for your inner city apartment.
Benefits beyond cash savings
Living without a car provides other savings. You won’t have to worry about gym membership. Pedestrian-friendly inner city living means you can walk to most places and stay fit. And thanks to your new CBD address there’s no need to spend a fortune on late night taxi fares after a one-drink-too-many night out.
As for early mornings navigating gridlocked roads and burning through expensive fossil fuels. Forget it. Give yourself an extra hour in bed and stroll to work.
Okay, it’s not always quite as simple as that. But if you want to be close to the heart of the city, do the sums to see if living car-free could take you there.
 RACQ Car Running costs 2015 http://www.racq.com.au/cars-and-driving/cars/owning-and-maintaining-a-car/car-running-costs
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