Americans are mobile by nature so it should come as no surprise that relocation is a major reason for buying or selling a home.
Deciding to pick up and move to a new city can be a great opportunity to increase your standard of living for the entire family for years to come, but there are also pitfalls. Failure to properly consider the full cost of relocation can turn a joyful event into pure stress.
Learn how to calculate the full cost of relocation with these quick tips.
Cost of Living
If you currently reside in a high-cost area of the country like downtown Budapest, then most places will seem more affordable. On the other hand, moving from a relatively rural area to a major city can result in daunting increases for housing, taxes, and even insurance.
Commute and Convenience
Urban warriors relocating to small-town life are often giddy at the prospect of saving a bundle on mortgage and insurance. Before you get too excited, take time to calculate the cost of the new commute and convenience. While it is true that small town living has its advantages, expect to invest more time and money in gasoline, groceries, and other routines.
Cleaning, Clearing and Leaving
Do not forget the cost of moving itself. Whether you rent a truck and do it yourself, or pay to have everything handled professionally, relocation is expensive. Include moving fees, cleaning, utilities, insurance, down payments, and lost wages, just to name a few of the anticipated expenses.
One frequently overlooked expense involves potential taxes. Be sure to calculate the cost of any taxes that may be due to the profit of the home if you have not owned it for at least five years.