Sunday, 9 June 2013

Unplanned costs of moving / not moving home

Having recently renewed my tenancy agreement, i've been hit with a couple of costs that i should have budgeted for, but didn't.

These included agency handling fees & stamp duty for the contract renewal, a top up to the rental deposit due to the increase in rent, and the purchase of some new furniture items that i'd been holding back on given the uncertainty of whether or not i would be moving.

However, it did make me realise that this was a clear hole in my budget & longer term cash flow plans, as costs would arise every couple of years regardless of whether i move or not.  For instance, by not moving, the costs above would still recur to a greater or lesser extent every couple of years.  If i did move, the costs would probably include all the above (but higher), and in addition the costs associated with physically moving.

I'll therefore add an estimate for this item to my long term cashflow forecasts and annual budgets.  Whilst it didn't make a material dent in my current year plans, the costs would add up over a long time horizon.

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