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Moving from one house to another, whether from city to city within South Africa or to another country, can set you back thousands or even hundreds of thousands of rands. If you don’t budget or save adequately, costs can soon spiral out of control.
There are many reasons South Africans change location. When it comes to moving around within the country, scores of people still choose to relocate to larger cities, often due to better job opportunities.
John Loos, property economist for FNB, says: “The economies of Gauteng, Cape Town and eThekwini are growing the fastest, and it’s safe to say they attract the most inward migration.”
More South Africans are also moving abroad due to a lack of jobs and poor economic growth, and their preferred destinations include New Zealand, Australia, Canada and the UK.
Wherever you’re going, it’s vital to consider every cost that you may incur. Here are some of the things you need to do before the move and some of the major cost considerations that you need to save or budget for:
DO YOUR RESEARCH
Make sure you take a holistic view of the costs involved. Moving abroad can be expensive and an international move can’t be done in a matter of weeks, unless you have enough money saved to deal with any unforeseen costs.
Lisa Bathurst, an international property specialist from Hurst & Wills, says: “Moving is not cheap and the costs stack up when going overseas, especially when visas are involved. The costs of purchasing property vary from country to country, and buyers must always check the transfer duties, levies and conveyancing fees, as these are not standard across the globe.”
REMOVE THE HOLIDAY FROM YOUR MIND
Loos points out that people often make the mistake of moving to another town or city after a positive holiday experience. It can be a costly mistake as you may find that life in the town or city you’d visited isn’t even close to what you imagined it would be.
“Remember that you’re moving away from your social circle and you may not know anyone in the new city, so you may find it hard to fit in,” says Loos.
“I tell people to think twice before relocating to a place that they think will be ‘romantic’. You’ve got to think differently – think about how you will live there permanently. You’re not going to sit on the beach in Cape Town; you’re going to sit in traffic. You’ve got to think like a permanent resident and not like a holiday-maker.”
CONSIDER VISA COSTS AND THE RULES THAT SURROUND EMIGRATION DOCUMENTS
If you don’t have a foreign passport or can’t get a spousal or ancestral visa, you may have to gain access to the country of your choice through other means, like an investment (or golden) visa.
“The costs of getting these visas can amount to millions of rands. For many countries, like Portugal, you have to physically travel to the country several times with your entire family to maintain the status, and these seven-day family holidays add up,” says Bathurst.
“It’s always best to make sure you do your research very well and make a list of all associated costs, however small, to be prepared and not get caught out by hidden last-minute outlays.”
Freelance writer Zoe Hawkins, who moved from South Africa to the US, recalls that getting the visa was only half the trouble. Last year, she ended up spending about R20 000 – R7 000 for the visa (I-130 petition for alien relative); R500 for police clearances; R250 for ID photos; R4 605 on medical visits; a final consulate visit that cost R4 382; and $220 (currently R3 324.87), which was the US citizenship and immigration services fee.
COMPARE COSTS OF REMOVAL COMPANIES
Think about how you will move from A to B. Can you do this yourself or do you prefer to hire professionals? Regardless of what you choose, there will be costs involved.
Removal companies will also try to charge you extra for any additional services you may require, like assistance with packing up the house, storage or taking items that you no longer want to the dump.
They may also omit some services, like not helping you load your goods on to the truck. So, unless you are able to do the heavy lifting, you’ll have to find money in your budget to hire people who can help you load items.
Depending on where you’re moving to, the cost of removal vans or shipping containers (if you’re moving abroad) can be R80 000, if not more.
DON’T EXPECT A QUICK SALE ON YOUR HOME
A lot of people rely on the sale of their home to fund their moving costs, but things may not always go according to plan.
According to Loos, the property market in South Africa is starting to stagnate. House prices over the past year haven’t enjoyed as much growth as in previous years, so be prepared to wait for a buyer.
“The average time that your home will be on the market is increasing and it is more difficult to sell. If you’re not careful, you could be sitting with the costs that come with maintaining an empty house. The average time to sell a house is currently 16 weeks and four days. But this will rise as the economy is stagnating,” explains Loos.
BUDGET FOR DEPOSITS
If you’re moving to a country or town where nobody knows you or can verify your credit history, you will need to be prepared to pay more in deposits, especially if you’re renting a home. This is because, without a credit record, you’re deemed to be a risk.
Many homeowners in the UK, for instance, require six weeks’ rent upfront. However, a new arrival may be charged as much as six months’ rent in advance.
Moving can be tricky, but, if you save and plan accordingly, there’s no reason you should not be able to take some of the stress out of the exercise and even save some money in the process.
Hawkins says: “I’d say add 50% to your budget just in case. Lots of things sound like small expenses, but when they all need to be paid in a short period of time, they add up quickly.”
