The sprawling metropolis which is Perth is the most expensive city in Australia to travel to work by car, according to new research by the Committee for Perth.
There are 540,000 full-time workers in Perth and 84% of them use their car to get to work. Perth stretches more than 100 km from Two Rocks in the north to Rockingham in the south.
It costs $9,180 a year to use a car when living five kilometres from the CBD in Perth compared to the average of $7,432 for other Australian capital cities.
But 25 kilometres from town, in an areas such as Joondalup, the costs rise to $22,306 a year compared to the average of $14,369 for other capital cities.
This means $1,900 a month is spent on petrol, parking, car registration, insurance and maintenance, which isn’t much less than the average monthly mortgage repayment of $2,000
“A lot of people live in Perth’s outer suburbs because it’s where they can afford to buy a home but they don’t take into account the ongoing cost of driving to work every day,” says Committee for Perth CEO, Marion Fulker.
“If you live five kilometres away from the CBD rather than 25 kilometres away you could save $6,344 a year or $122 every week on travel costs,” Mrs Fulker added.
A household saving $19,000 a year could pay off a median priced home loan of $508,500 in approximately 14 years rather than 30 years and save more than $336,000 in interest.
Perth currently has 18.3 CBD parking spaces per 100 workers, the third lowest ratio behind Sydney (11.4) and Melbourne (13.4).
Business Insider Emails & Alerts
Site highlights each day to your inbox.