It’s always a shock when you get your first water, gas or electricity bill after you move out of your family home. Granted, it’s almost always more expensive than expected! This is especially true now more than ever. With the rapidly growing cost of living crisis that doesn’t seem to be going away any time soon, you need to consider whether it’s financially viable for you to move out.  

From skyrocketing utility bills to exorbitant rent increases, and the rising cost of medical expenses, you could be at risk of getting yourself into some serious debt. Save your credit score by making sure you’re prepared to cover all of these expenses, and more, before you move out. 

Here’s what to be prepared for when moving out of home in Melbourne. 

Skyrocketing Utility Bills 

There’s no doubt about it, under Melbourne’s cost of living crisis, our utility bills are skyrocketing. The average water bill in Melbourne is rapidly increasing, as are the costs of other energy bills such as gas and electricity. But why is this the case? For one, energy prices have gone up because of the Ukrainian war and subsequent rises in exportation costs. 

Regardless of the reason, however, the fact of the matter is that Melburnian power prices are, at present, nothing short of shocking. Indeed, some electricity bills are set to surge by more than 50%, with energy rates rising rapidly.  

Exorbitant Rent Increases

As well as Melbourne’s cost of living crisis being impacted by rising energy bills, the city’s housing market is also in strife. This is particularly stressful for rental tenants, who are experiencing exorbitant increases in their rent. With rental price increases becoming increasingly common across the board, Melbourne tenants are at their wit's end - with some of them being forced to cut out other necessary expenses. 

So, what’s the solution? Melbourne’s housing crisis is far from over. However, some landlords are pulling their weight to help out. By linking up with not-for-profit organisations such as Homegrounds and their push for affordable housing, some property owners are committing to leasing out their places for up to 16% less than their market value.  

However, sadly, not all of us are lucky enough to access NFP-supported housing. In addition to this, some would argue that the government is not doing enough in terms of providing Melburnian tenants with much-needed rent assistance. As such, if you are an aspiring renter who is planning to move out of your parent’s home and into a Melbourne rental property, you should carefully consider whether this is something you can afford. In some cases, saving up a deposit for a home can mean you will pay less in mortgage repayments than being forced to fork out for exorbitant rent. Do your research, and if you find this applies to you, it may be more cost-effective for you to become a first homeowner instead.

Increases in Medical Expenses

If you’re moving out of home, chances are, the medical bills your parents used to fund will now also become your financial responsibility. On this note, it’s important to be informed about recent rises in medical costs, in the face of dramatic reductions to Medicare’s bulk billing scheme. 

Traditionally, most standard GP appointments have been covered by bulk billing - which essentially meant that the government would absorb the cost of paying the doctor to see you. Now, however, we are experiencing a nationwide decline in doctors who will accept to be bulk billed, and as a result, we are seeing an alarming rise in the out-of-pocket costs associated with attending medical appointments.  

So, with so many financial pressures on Melburnian shoulders, surely, something has got to give? That is to say, inflation has to stop somewhere, and reasonable costs of living need to resume - and, soon. 

Whether or not this happens in the future, with the cost of living in Melbourne rising almost daily, it pays to be prepared. Take stock of your expected rental expenses, and compare them against your income. Once you’ve done this, ask yourself - can I afford to move out? If the numbers stack up, by all means, go for it. But, you’ve been warned - moving out in Melbourne can be expensive!