Mind the hidden costs of moving out
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.
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.
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.
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.
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.