When it comes to moving out, the cost is not as straight forward as it initially might seem. Yes, there’s rent or payments on your mortgage. But, there are plenty of more ongoing and one-off costs that you’ll also need to think about if you want to make the big move.
Let’s kick off this moving out journey by thinking about the costs you can expect to incur. We can categorize these as ongoing and one-off costs.
Ongoing costs are expenses you can expect to continue to come up from time to time. These can range in frequency. Some of the more obvious ones include things like your rent, utility bills, strata fees, internet/phone bills, groceries and transport.
On the other hand, one-off costs are costs you’ll probably only incur once during the moving out process. For example, furniture for your sweet apartment, bonds, fees for moving people and so on so forth.
Now that you know what will be happening to your dough, let’s have a look at what each of these expenses might actually cost you.
For the sake of making cost estimates, let’s have a look at a 2-bedroom apartment in Fitzroy(trendy). And hey, if this isn’t your dream apartment or suburb, just check out our moving out calculator to get personalized numbers for your sitch xx
Here are some of the main ongoing costs you can expect to come across each week (assuming you’re not living with any roomies):
Rent: $270 – Hope it’s a nice place
Electricity and Water: $35 – Adults have to pay utilities *sad face*
Internet: $18 – Unless you borrow the WIFI from your nearest Starbucks
Gas: $11 – If you have a Tesla, ignore this one
Transport: $86 – Assuming you catch the train and drive your car a couple times a week
Food: $102 – Pretty standard, if you’re into that posh lifestyle (all the Ben & Jerrys eaters) feel free to add on some extra dollars
Essentials: $19 – This does NOT include online shopping sprees! Think toothpaste and toiletpaper
Fun: $83 – Note, this might be much much lower in lockdown *another sad face*
This comes down to a grand total of $538 a week!
Now, let’s talk about those one-off costs you’ll need to consider on move in day…
Bond: $2160 – hey you could get it back!
Rainy day Fund: $6456 – This is a phat fund (3 months’ worth of living expenses)… Please don’t skimp out on this one
Movers: $250 – Unless you have some really nice friends
Furniture: $4098 – Assuming you need all the essentials e.g. fridge, couch, bed, vacuum, dryer, and are NOT buying Pottery Barn
So, you’ll need to budget around $13,000 for move-in day alone.
Now that you are aware of the costs, let’s talk about what happens next…
Moving out is a HUGE decision to make and you need to make sure it is the right decision for you. Having cost estimates like the ones we just went through can help you decide whether moving out is in the cards.
So, figure out whether the above numbers fit your budget or whether it would be too pricy for you. There’s nothing worse than having to move BACK IN with your parents, so it’s really important to make sure this works for you.
If you feel like you can swing it, kudos to you! For someone in your position, we’d recommend setting up a budget for once you’ve moved out to make sure you’re staying on top of those ongoing costs (because they DO add up).
If you’re finding it’s too much, use our Moving Out Calculator to figure out if you could afford a smaller apartment in a different suburb. If that might be pushing it too, figure out what you can do today to set you up for a successful ‘move out’ down the track (I for one am a huge fan of saving goals).
Whether you are moving out today, tomorrow or a couple years down the track, do your research and make sure it works for you.