Mind the hid­den costs of mov­ing out

Mt Druitt - St Mary's Standard (East) - - REAL ESTATE -

THERE comes a point in time in all chil­dren’s lives that they need to move out of the fam­ily house.

When chil­dren first leave, they gen­er­ally rent a property as they don’t have enough de­posit or the in­come to buy their own house.

Bud­get­ing for a rental property re­quires fac­tor­ing in more ex­penses than just the weekly rental pay­ments. It re­quires some ini­tial saving and prepa­ra­tion, in ad­di­tion to some on­go­ing costs.

THE BOND

THIS is one of the first ex­penses of rent­ing. No property man­ager or land­lord will let you move in un­less you have paid the bond.

While the ten­ant will re­ceive the bond back at the end of the ten­ancy (pro­vided the property is in sim­i­lar con­di­tion as the day the ten­ancy com­menced), the money still needs to be paid.

A rental bond is usu­ally the equiv­a­lent of a few weeks’ rent. If there are a num­ber of house­mates, it might be eas­ier to split the bond so no one per­son has to pro­vide the en­tire amount.

RENT IN AD­VANCE

MOST leases will call for two weeks’ rent in ad­vance, in ad­di­tion to the bond.

This is sim­ply the first two weeks’ rent paid ahead of time. When you add the cost of the bond

PETER KOULI­ZOS and the rent to be paid in ad­vance, this can add up to thou­sands of dol­lars, even be­fore you have shifted from home.

MOV­ING COSTS

FOR those not lucky enough to have will­ing friends or fam­ily with a van or ute, the cost of a re­moval­ist will need to be fac­tored in.

Prices will vary based on how far the dis­tance is be­tween the ex­ist­ing home and the new property, how many hours it takes to move and whether there are flights of stairs or lifts.

FUR­NI­TURE

PAR­ENTS might not be thrilled with the idea of their kids tak­ing fur­ni­ture with them when they leave home.

While some items are not ur­gent, a bed, mat­tress and fridge will all need to be ready to go for the first few days in the new property. The couch, TV, din­ing ta­ble, chairs and wash­ing ma­chine will need to fol­low soon af­ter. Rent­ing a fur­nished property will cost more but it will elim­i­nate fur­ni­ture ex­penses.

ON­GO­ING BILLS

ELEC­TRIC­ITY, gas, wa­ter, gro­ceries and in­ter­net are on­go­ing ex­penses that will need to be bud­geted for.

De­pend­ing on the area you move to and how many house­mates have cars, there might also be a fee for ad­di­tional res­i­den­tial park­ing per­mits.

Mov­ing out is a great way to achieve in­de­pen­dence and brush up on some life skills but bud­get­ing, saving and prepa­ra­tion are all im­por­tant steps to check off first.

— Property lec­turer and au­thor Peter Kouli­zos runs the­p­rop­er­typro­fes­sor.com.au

Mov­ing out of home for the first time re­quires sig­nif­i­cant up­front costs for rent and fur­ni­ture.

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