Hello. Just wanted to ask how do all of you afford rent? I am a uni student studying in a STEM field and will be graduating in the next 2 years. Recently I've taken a look at realestate.com and boy oh boy is it shocking. Even if I get lucky with a starting salary of 60k - 70k, rent will end up being a huge portion of my after tax salary.
I don't want to rely on my partner to chip in, as I don't know if/when this will happen. I understand you don't have to live in the flashiest suburb or the nicest apartment, but even then a decent one will set you back 400-500 dollarydoos a week!
Obviously the Sydney market is messed up, but still. Couple that will sky high inflation and it makes living seem sooo out of reach. Kinda worried about my generation and the ones that will follow. Especially with all this BNPL and instant gratification destroying people's financial habits.
He's not that much better off than your average pensioner - if the OP is on exactly 60k, his take home pay after tax will be $48,513.00. Unlike pensioners, he/she can't rely on tax payer funds so has to work near places of employment such as major cities were rents are high - for a shoebox, that will cost around $500 per week or $26,000 per annum. That takes the post rent income to $22,513 per annum.
The pension with the supplements is $967.5 per week with an additional $134.6 for rent assistance.This is a total of $28,732.80 per annum with no tax payable. Pensioners don't need to live near employment, so rents are low - $270 per week would total $14,040. This takes the pensioners post rent income to $8473 per annum. In comparison:
After Taxes and Rent
Pensioner: $8,473 per annum
9-5 Worker: $22,513 per annum
This isn't an accurate reflection though, because the 9-5 worker will have significantly higher cost of living expenses for essentials due to location and the cost of working (commuting, clothing, mandatory "social" work gatherings etc) adds up. Let us be conservative and say this is 35% of the OP's salary, which is $7879.55. It's an understatement, but the new comparison would be:
After Working Expenses Adjustments
Pensioner: $8,473 per annum
9-5 Worker: $14,633.45 per annum
The OP would still have a little less than double the pensioner, but he/she has to work 5 days a week from 9-5 for that luxury. They also wouldn't have access to the many subsidised services for pensioners (rates, bills, transport, rego, etc). A 60k per annum salary is also pretty normal for an average full time worker, so unlike the unusual situation of someone relying on the pension alone the situation above is the reality for most average full time workers.
I'm in a thankful situation where I'm quite a bit above the average income band, but I could understand why the OP might be frustrated looking at your comment…