According to the ABS, in 2006 around 94% of us had moved out by the time we hit 28 years old. Sounds about right, but now consider that by the age of 35, almost 46% of people had moved back in with mum and dad at least once.
I know what you’re thinking – “yeah, but that won’t happen to me – once I’m out, I’m out for good…”
While your confidence is charming, without the right advice, it’s quite easy to find yourself moving back into the home-gym that was once your childhood bedroom.
Consider The Why
First, think about why you’re moving out. Maybe the decision has been taken out of your hands – you have to move away to work or study, or to follow love. Maybe it’s just time to have your own space.
Keep a level head and ask yourself if you’re truly ready to be fully self-sufficient. Leaving home off the back of a snap-decision is never advisable, and could limit your options should things not work out on your own.
Consider The How
Your next question? Can you afford to move out, and stay out?
Firstly, you’ll have to take care of the initial accommodation costs, but that’s just day one. Are you going to be able to meet all your new-found commitments? Having never fed yourself, provided for water bills, electricity bills, etc before, is your income going to keep your head above water?
Also, what sort of lifestyle do you see yourself leading once you’re on your own? Managing your expectations and the reality of moving out is important – do you want to live on your own? Be prepared to pay more in rent. Do you want to live close to restaurants, bars and cafes? Make sure your wallet can keep up with your social life.
Consider The Where
Most of us will only be in a position to rent our first place, so here’s what you’ll need to think about:
- Rental Bond: Usually between 4-6 weeks’ worth of rent – it’s a form of security for your landlord. As long as you look after the property, you’ll get this back should you decide to move out.
- Lease agreement: Depending on the landlord, you can sign on for different periods of time. Standard lengths are 6-12 months, giving both you and your landlord relative stability. Make sure you read through your agreement thoroughly before signing.
If you’ve waited and saved up to buy your first place, here’s what you’ll need to think about:
- Your deposit: Put it this way – the more you can save for your deposit, the better. If you’re able to save more than 20% of the purchase price of your home, you’ll avoid having to pay Lender’s Mortgage Insurance, and you’ll need to borrow less from the bank.
- Borrowing Power: Depending on multiple factors such as income, deposit saved and regular expenses, our handy online tool can give you a rough estimate in seconds. Speak to an expert lender to get your final approval figure.
- Other costs: Don’t be a beginner – make yourself aware of stamp duty, inspection fees and the like, and include them in your savings plan.
Consider The When
Too often, the best laid plans falter at the final minute. Don’t make the mistake of forgetting the costs involved in the actual move. Get a couple of quotes from removalists, or if you’re looking to DIY, get a price on a Moving Van or Truck and make sure you don’t have to ask mum and dad to float you the money.
Lastly, once you’re out there – pay attention to mum and dad’s nagging and consider whether Home Contents Insurance is within your budget. You’ve worked hard to feather your new nest, so make sure you give your valued possessions the protection they deserve.
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