too much of a good thing, page-8

I have just returned from a holiday in Perth (currently live in New Caledonia) and was amazed at how expensive everything is. I have colleagues who have years of experience as marine scientists and were thinking of moving back to perth on a $75,000 to $80,000 job. They are no longer even considering Perth if the salary is less that $100k as they would like to buy a house at the same time. A $700k family house fairly close to the city and the beach with a $500k loan would result in about $40,000/year in interest only payments (let alone principle). After tax their incomes would be about $60,000. They only have $20,000 to cover all other expenses - kids schooling, food, petrol etc...

quite scary actually...i am grateful i bought property and have some money in stocks if i ever go back...

Phil