Advice Market Blog

Moving out of Home – How Much Does it Really Cost?

June 27, 2016

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You’ve probably dreamt about the day you move out of home for quite some time – the feeling of freedom that comes with being able to live life on your own terms – no more complaints about clothes on the floor and spending too long in the shower!

Leaving home is not all beer and skittles however – often it becomes a short sharp dose of reality as the truth sinks in that Mum and Dad were dealing with a lot more expenses on your behalf than you realised. Moving out of home is a costly exercise and requires some careful planning before you go ahead. We outline some of the decisions that will affect your costs and what sort of costs you will need to allow for if leaving home.

Why Move? – It’s important to investigate your reasons for shifting. If circumstances offer you no choice then it is understandable but if you are under no pressure to leave then think seriously about it first. As tempting as moving out can be, staying at home has huge advantages to your bank balance. Staying a little longer might help you get some funds behind you.

Who to Move with – Whether you plan to live alone, or share with others, you will have accommodation costs. Living with more people can reduce your expenses, but it can result in more friction within the relationships. Decisions like who is signing the lease and what happens if there is damage need to be made.

What to Move – The more stuff you take from home with you the less you have to purchase. If you are moving into an existing living arrangement then things like furniture and whitegoods will already be in place, helping to reduce your expenses.

When to Move – Choosing the time to go is important. The start of a new year is notoriously busy for accommodation as new people arrive in town for study or work. Shifting in a quieter time of year will make finding accommodation easier and help you find a more affordable rental.

Where to Move – Your location will affect the rent you pay and your transportation costs. A beachside location is attractive but generally comes at a premium. If you are studying or working you will want to be nearer to your place of learning or employment. Often this can be a trade-off.

How to Move – Shifting fees can be expensive. The more you take the less you buy but the greater the cost of shifting. Look to get family and friends to help. Anyone you know with a truck or trailer is a great asset right now!

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So what costs do you need to consider?

Rent – Often the biggest cost for most young people, you may be shocked at the cost of living in the real world. Choosing where you live and who you live with can have a big impact on controlling this cost

Bond – This can be a big upfront outlay and catches many first time shifters by surprise. The bond can be as much as four to eight weeks rent and can be a significant dent in the bank account depending on how many people share in paying it.

Vehicle/transport – Your new location may have a material effect on your transport costs

Insurances – Leaving home will mean you are no longer covered under your parent’s home insurance or medical insurance and these are additional costs you will need to figure in

Food – Next to rent your food costs will be potentially your single biggest expense, especially if you choose to eat out more than before.   

Fit-out – Moving home means many one off purchases and included in this will be furniture, televisions, whitegoods such as washing machines, dryers and fridges and smaller household items like cutlery, linen, bedding, lamps which can soon add up

Electricity – Mum and Dad won’t be covering the power bill anymore so you’ll need to allow for this

Phone/Internet – You may have already been covering your mobile phone but if you are wanting a landline and some serious data for video watching then be prepared to reach into your pocket.

Connection fees – Your electricity supplier, internet provider, and phone/internet service will all require upfront bonds, set up charges or payments in advance to set up your services.

Moving costs – Shifting out of home can be expensive if you are using a moving service. Try and do as much as possible yourself.

Emergencies – You’ll want a contingency fund in place to cover unexpected surprises.

The most important thing of all is to set a budget and get the advice and support of an experienced person who can help you work within your finances and make it as painless as possible. Moving out should be an exciting time in your life – don’t let it become a burden that threatens to unravel your financial well-being. Speak to an expert today!

The information provided is intended as a guide only and does not take into consideration your personal situation, needs and objectives and should not be considered as advice of any nature.

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By AdviceMarketeditor