Four Common Moving Mistakes to Watch Out For

This past year has seen a huge rise in people moving all over this country as job and economic situations change, rocked by the lingering effects of the global pandemic. Millions of employees are taking advantage of their companies’ new work-from-home opportunities which means they can live anywhere they want. Families are leaving expensive cities for more rural homesteads. Folks are migrating to beach cities and mountain towns, making every day feel like a vacation. If you are one of those planning to move to a new area, it pays to do a little research before jumping in with both feet. Take a look at some common mistakes to avoid when planning your next big move.

1. Underestimating Housing Costs

This can happen anywhere but our agents here in the Lowcountry particularly see this from buyers who move here from more metropolitan cities. The cost of living in Savannah, Bluffton or Hilton Head Island is indeed lower than places like Atlanta, New York or Dallas. But housing costs are still not as inexpensive as many people would like to believe. When home buyers are looking at homes they can afford, they need to remember to factor in things like homeowner’s insurance, property taxes, monthly utilities and – a big one around here – flood insurance. These additional costs can add up, leading you to monthly housing costs that are higher than you originally planned on. The recommended ratio is to not pay more than the equivalent of 28% of your pretax income towards housing costs.

2. Not Considering Taxes

If you are moving to a new state there is more to consider than just property taxes. You should look into the ramifications for your income taxes, you may be subject to dual taxation, once for the state you live in and once for the state where your employer is located. You may also want to look into the estate taxes and if there are taxes on social security for the state you plan on moving to. If you are looking to purchase a second home and split your time between two locations, that will affect your tax situation as well.

3. Underestimating the Cost of Living

The costs of everyday expenses can differ greatly not just between states, but between neighboring towns as well. Depending on your needs you should look into the costs of child care, transportation, groceries and more. Your housing cost is generally the largest chunk of your monthly expenses, but if you know the cost of child care will go up, you may be able to comfortably afford less house than you think.

4. Misunderstanding Job Prospects

Many people these days are moving because of immediate job needs. But don’t forget to consider potential future changes as well. Does the town you are moving to have enough options if you end up not liking the new company or work arrangement? Is there an opportunity to grow in your career or even change careers? What about significant others or older children? Do they have ample employment opportunities? Of course no matter where you are, you job situation can change, but it’s worth being thorough before making such a life changing decision.