Moving? Top 5 Costs You Forgot to Consider

The Center for Neighborhood Technology recommends that housing and transportation costs should not exceed 45 percent of your income.

Spring and summer are big moving seasons.

The weather is warming up, the sun is out, and you have decided to find a new address. When researching a new city or town it is important that you understand what living in your perfect location will truly cost.

While renting an apartment or buying a house is probably the biggest cost when moving, there are many other expenses that you will want to consider. Experts recommend doing your research, and taking in all of the various expenses you will incur in your new city.

Here are just a few expenses you might not have considered when moving:

Transportation

In most households, transportation is your second biggest cost after housing. The Center for Neighborhood Technology recommends that housing and transportation costs should not exceed 45 percent of your income. If your move is going to dramatically increase your commute to work, you need to calculate the cost of gas or public transportation to make sure that your transportation costs are not going to bust your budget.

It is also important to take into account the costs of getting to the grocery store, the doctors office and any other stores you visit on a regular basis. If you currently live in a small, compact town or neighborhood, but are moving to a suburban area where driving is the norm, your transportation costs are going to increase.

Insurance

The cost of homeowners insurance will vary depending on where you decide to call home. The differences can be dramatic. If you are moving from a landlocked location that is almost never subjected to natural disasters to an oceanfront home in Florida, your insurance costs are going to skyrocket.

This can be especially true if you are moving to a flood prone area as the cost of flood insurance has increased dramatically in the last few years. Request an insurance quote from a local agent to get an accurate assessment of what homeowners insurance will end up costing.

Car insurance is also affected by local factors. Moving to a high-crime area will push up your premiums.

Taxes

We all pay taxes. Sales tax, state and local income taxes as well as property taxes. Moving from a low tax area to a high tax area can have a dramatic affect on your budget.

Sites such as Bankrate.com provide lists of state sales and income rates. Check out property taxes when comparing neighborhoods and make sure that you can afford the taxes for any house you are considering.

Utilities

Like taxes, utilities are simply a part of life that all of us must pay. Utility costs very from state to state and region to region. The size of your house and how energy efficient your home is can have a big impact on these monthly bills. The best way to get an accurate estimate of the utilities is to ask the owners for copies of their utility bills.

Older homes that have not been upgraded will often be much more expensive to heat and cool than a new, more energy efficient home.

Miscellaneous Expenses

Everyday costs can vary between locations. You will pay much more for gas and food in a touristy mountain resort than you will in a suburban community. The best way to get an idea of local expenses is spend a weekend checking out the local stores.

If you cannot visit, there are sites that can give you a basic idea of local costs. City-data.com and Bankrate.com both have local data. The city-data site also contains a forum where you can ask local residents about living costs.

These are just a few of the expenses you will have to consider when moving. Spend some time doing your research so there are no surprises when you finally settle into your new home.

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