Between expensive, cramped housing and crowded public transportation, the Covid situation has made many city dwellers think twice about where they live.
As a result, more people than ever are considering moving out to the suburbs or even the countryside. And if your job will let you work from home, this type of move can be especially appealing. But moving house can be stressful and lead to uncertainties. Should you make the move?
Moving to a new location certainly will have an impact on your personal finances. On the bright side, moving out of the city can mean lower housing, transportation and food costs. But not in all cases. Let’s look at a few ways your finances might be affected if you move out of the city.
Determine Yours Costs of Car Ownership
Car insurance is one of the biggest costs of car ownership, after depreciation. And cheap car insurance typically costs less if you live in a suburban or rural area, where there is less risk of theft and the roads are emptier. So a move out of the city will often result in lower car insurance costs that can save you hundreds or thousands per year.
That said, you may spend more money on petrol since those living out of the city tend to drive more. Consider how far you new home will be to work (if you will drive there) and services like the grocery store and post office.
Benefit from Lower Housing Costs
Inevitably, you will pay a heck of a lot less for your housing if you move out of the city. Either that, or you’ll get a much bigger property for the money you were spending in town.
In this new age of working from home, a trend we expect to continue even after the pandemic has subsided, having extra space can make a massive difference to your wellbeing. Imagine having a separate playroom for the kids and all their toys, or an office all to yourself. Or both!
But Beware Higher Holiday Costs
Living in a rural area could mean you feel less stressed by day-to-day life, and less driven to get away on holiday. Even so, everyone needs a holiday. Keep in mind that holidays can become more expensive if you live rurally.
City dwellers can hop in a taxi or private car or even take public transport to the airport, neither of which cost very much. But if you live a few hours from the nearest hub airport you might find yourself needing to drive to the airport – and pay for expensive airport parking while you’re away.
How often you take a trip abroad will determine whether or not this will have a big financial impact on your life should you move far from a city airport.
Making the decision to move away from the city could lead to lower household expenditures and a lower stress day-to-day lifestyle. Understanding how such a move will affect your finances can make the decision to move a bit easier.