Strategy: Take a Wage Haircut and Move to a cheaper area

Even better. Increase salary and move to a regional area. It’s what we did. Also held our original PPOR and now rent a brand new house quite cheaply. Cost of living is fantastic and fill up every fortnight or so. The 10 min drive to work is a killer..

 

Great post!
We moved city, keeping similar price resident but to a house instead of 1 bedroom apartment. It's a better lifestyle in general with the only drawback is that it's a less walkable from everywhere (and I can't drive).

In my situation, reduce to part time work to 4 days a week will improve our lifestyle better than moving out even further. Just need to get that salary increase then negotiate part time work

 

I have done similar 5 years ago as well - moved from Sydney to Brisbane.
Keep Sydney Property and rent it out forever - don't qualify for the 6 years exemption.
Bought a place in Brisbane to live.
Pretty sweet deal as I didn't need to reduce my income due to job pay is the same for my set skills.
Food is definitely cheaper, traffic jam is maximum of 20 mins, weather is nicer except for summer.
Life is a lot more cruising - lay back.

 

I have lived in Melbourne, Canberra and Sydney. Living in Canberra because my wages are the same but housing is cheaper plus shorter commute.

 

Considering doing something similar which is to move back to live in current IP that is Interstate and sell current PPOR which will make me mortgage free (making living a lot cheaper) while hoping my current employer would let me work from interstate for a smaller wage.

Getting another job isn't a big deal but prefer to stay with current employer.

 

PaulF have you read this tip?
Tax Tip 190: CGT Strategy Wait 5.5 Years Before Selling the Old Main Residence https://www.propertychat.com.au/community/threads/tax-tip-190-cgt-strategy-wait-5-5-years-before-selling-the-old-main-residence.36905/

 

people are doing this every month to the coast 2-4 hrs either side of all the major capitals.

this ^ as long as you don't need beachfront the sums work easily. If you do need beachfront you won't be worried about the sums anyway

 

Well Australia is fringed with coastline the whole way round and we could choose to live in Perth, Adelaide etc. Take your pick. But its not Sydney, or at least we're pretty sure we wouldn't be happier anywhere else despite the savings.

If it was purely financial, the decision would be dead simple. Lifestyle, arguably the best city in Oz etc, comes at a cost. Good things always do.

 

I think you nailed it. Personal happiness needs to be defined for yourself. If you are happiest where you are... stay. Simple. If not, move. Also simple. (It might feel hard or scary to those contemplating it but its still a simple equation) I grew up in Sydney and wasn't all that happy on balance (despite all the obvious advantages which I don't deny) so I left and headed to the Shoalhaven a mere 2 hrs from the big smoke. Its been 10 yrs and I am yet to regret it.

 

But would you be any unhappier?

 

Yup @Terry_w , thanks for that. Will definitely look into that as i don't think it's a good time to sell now in Melbourne and keeping it for longer would most probably generate more Capital growth as per the thread.

 

Pretty likely

 

Would you mind telling us what it is about Sydney that you love so much? I'm not being sarcastic (for a change), I am genuinely interested in your perspective.

 

Weather, good schools, multiple nice beaches in close proximity (minutes away), good access to health facilities/hospitals, everything within a few minutes reach - shopping, restaurants etc (walking distance), quite a bit to do on weekends, holiday camps for kids, familiarity, cosmopolitan environment, surrounded by life in general - dont feel cut off,minimal redneck/bogan/insular factor, critical mass of transport and amenities in general, easy to fly in fly out with airport (intl/domestic) not far away etc etc.

I admit not all parts of Sydney are equal (to us). We bought a house in the Hills thinking we needed a yard, white picket fence etc. Lasted all of 10 months. The silence was deafening. Moved back to where we belong to a smaller place with 2 small courtyards. We rent by choice. We could do with more space but I learnt the hard way to be grateful.

Sydney has its challenges...you either love it or hate it.

 

Places other than Sydney have all of those features too.

I guess it comes down to how quickly you would like to stop working. Some are happy to work and stay in Sydney when it would be possible to stop working and move away.

Btw, when i say work I mean being a wage slave. You can have financial independance and keep working.

 

We moved from Sydney back home to Newcastle for family support. It was always kind of the long term plan (at the very least we would have moved back before the kids started high school), but we accelerated the plan when we had twins.

Fortunately my wife was able to keep her sydney job though - and has been working 2 days in Sydney, 2 from home for 8 years now. She is happy with her work, so no reason to change any time soon.

Cheers,
Inertia.

 

and inland too! We moved from balmain to the Blue Mountains and absolutely love it.
From a 2 bedroom apartment to half an acre.

 

@Lacrim spend your life slaving away to pay a mortgage and you won't be able to enjoy the very things that you've mentioned.

 

This is becoming so much more common. I meet people in the Shoalhaven (work and social interactions) almost every week who have held onto their Sydney jobs, moved, and go back 1-2 days per week to keep the boss happy, the telecommuting/part time commutting thing is just becoming more and more the norm. As people get the bravery to ask for flexible work they are getting green lights to go for it because employers want to keep good skilled staff and the productivity goes up not down (plus the employers are realising they can save on renting huge office spaces and cut back to hot desking).

 

Yes, and it should become more and more common. So many people work remotely now so it doesn't really matter where they live.