For those of you who have been following our series on relocating, this week offers a look at the cost of relocating. For first time readers, welcome! This is our third instalment in our 7-part series on relocating. The cost of relocating, whether to a big city or small town, might cost you more than you think. It requires meticulous planning and can often take more time than you initially anticipated.
Disclaimer: The advice shared in this post is purely anecdotal and does not constitute financial advice.
Let’s face it, relocating is not for the faint of heart. Almost everyone has a different reason for why they are packing up and saying goodbye to their old life. It may be for a better job opportunity, a relationship, quality of life, or all of the above. Irrespective of the reason, one thing is certain – moving your life from one place to the next will cost you time, money, and effort. After all, we still have to keep our lives running while we are planning a move.
We here at Seasoned Journeys love making lists. It helps put things into perspective. It is important to list not only the things that will make your move seamless, but those aspects of the move that are not immediately apparent, which, more often than not, have bigger costs.
Costs to consider before relocating
The cost of getting to your new city or town
Will you be driving or flying? How many people will be travelling? Would you have to spend a night somewhere en-route if driving?
Cost of a removal company
Do they pack up and unpack? Do they provide boxes or not? Are these part of the quote or an additional cost?
Timeframe of removal companies to ship your belongings
Will it take a few days or a few weeks? If the latter, it may mean forking out some money on some of the items that are in the moving van.
Will you use a storage unit?
Renting a storage unit will naturally be an additional cost depending on the length of time you need it for.
Renting or selling your existing flat or house
Changing cities is a huge decision, and some of us are not quite ready to say goodbye to our old lives. So making a decision on whether to rent or sell your existing property is something to consider before you leave. Leaving the property vacant can lead to its own set of challenges and costs.
Maintenance company for repairs (should you decide to rent or sell)
Renting or selling your property will require you to make superficial repairs, such as painting, plumbing, and waterproofing. By law, you are obliged to declare any faults / defects, so it’s best to address it head-on.
Cleaning company
Will you be doing all the cleaning or spending money on a cleaning company? Once again, does it fit into your scheduled timeframe? And would you require a cleaning company at your new relocation home?
Estate agent fees when renting or selling
When choosing to rent or sell a property, unless you are a licenced estate agent, you will be required to hire one. Each agent has their own fee structure so take this into account when researching your options.
Food wastage
When you throw food out, you are literally throwing money away. Plotting your timeline is critical for considering when you need to buy food. You also have to contemplate how much money you will be spending on food if you are driving to your destination.
Cost of renting or buying your new flat or house
Again, time is a huge factor. Knowing when your house can be leased out versus when you will be able to move into your new place is crucial. If you are lucky, your company may sponsor accommodation if you’re relocating for work purposes, which gives you some room to decide when you would like to move into your new place.
Changing schools if you have kids (check your signed contract when trying to take your children out of their existing school)
Each school has their own set of rules. Some schools require a month’s notice before taking the kids out, some a term’s notice and some even want a year’s notice. So, pay close attention to the contract you have signed. These costs can make up a significant chunk of your budget.
Selling any big items if you are moving to a smaller flat / house
There are actually some ways to make money when relocating. The packing process has a way of making you see your possessions in a new light. This will make you want to declutter and perhaps offset some costs by selling items that you no longer use, or are just too big to take with.
Squaring off debt
Depending on your current financial circumstances, starting afresh can, for some, release much needed cash. Consider squaring up small debt that may be hindering you. Why not try to begin again with a clean slate and start out debt-free.
Are you moving for less or more money?
There is a myth that is purported that when you move your family either across provinces or out of the country, that you are doing it for more money. This may not always be the case. You may be moving for a lifestyle change, which may mean less income. However, this would also mean one has less money to play around with depending on the new area you are moving to. It is also possible that you could be gaining more money (even when earning less), because your expenses may be less.
Rates and taxes
When renting your old property you might want to consider including the rates and taxes into your rental agreement. Also be mindful how it is being worked out in your new area.
Return on effort and time
A few important questions to ask yourself: Will it be worth it in the end? Who stands to benefit the most from the experience? That can only be answered once you have already made all the decisions and concessions.
It doesn’t always come down to economics, but it plays a big part in the decision-making process. By putting the facts and figures into a spreadsheet, you can help sequence each event accordingly. Thinking of your move as a project, where it has a beginning and end, will help keep you on track. It can and will get overwhelming, but it is essential to keep your focus on why it is that you are relocating and the benefits thereof.
