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Clearly the financial aspects of moving abroad are amongst the most
important considerations. We all know that the costs of moving
within the UK can seem exorbitant, so the potential for escalating
costs when planning to live in another country is enormous. However,
there are some sensible things that you can do to try to keep the
costs under control.
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This page of the Guide is not the comprehensive
answer to all your own personal financial situation - you need professional
advice for that - but it does provide you with some tips as to how
to go about getting the most for your money during the process of
moving abroad. It also lists some of the financial aspects that you
should check before you take the plunge; you need to know that you
will be able to afford to live once you have moved. |
Moving
- Make sure you do your research: do price comparisons in the
area to which you want to move and ensure that you are not
paying an inflated price.
- Don't buy in haste. Take your time and give yourself a
cooling-off period. Use the criteria exercise on the Making the
Decision page to help you to make the right decision.
- Make sure that you use a reputable mortgage broker to get
the best deal. There is a good range of international mortgage
brokers in the UK so shop around. As an example, take a look at
www.seemoney.co.uk .
- Transferring money can be expensive, so try to do it when
the exchange rate is favourable. Use a currency broker that has
a clearing facility with no charges attached. There are over 30
independent currency specialists in the UK; look at
www.hifx.co.uk for an
example of what they offer.
- Try to secure the exchange rate after you have put down your
deposit by using a 'forward contract'. Your currency broker will
do this for you.
- If you have a sterling pension and are moving to a country
within the Euro zone, you can receive it in your new country of
residence and fix the sterling/euro exchange rate for two years,
so you know how much you will get each month.
Obviously, you can make all your financial transactions yourself
and save the charges that currency specialists will make. However,
you must weigh up carefully whether the fees will save or cost you
money in the long run. At least talk to some companies to make some
comparisons and to make judgements based on the facts as you see
them.
Affordability
Remember that your financial issues don't begin and end with
paying for your property. There are other financial issues that you
must research before you make your final decision, so that you know
that you will be able to afford your chosen life style. You may
believe that your destination will provide a cheaper cost of living
than here, but do your research and confirm this to your
satisfaction. Think about and investigate the following:
- The tax regime in the country of your choice
- Local property charges
- The arrangements in your planned country of residence for
the UK state pension and any other pensions that you have
- Travel costs, both locally and for trips back to the UK
- Food and drink
- Eating out
- Entertainment
- Household goods
- Utilities, including water
- Clothes
- Medical care and the costs thereof
You can probably think of other expenses that you, as a
household, incur. Make a list and then do your research on
them.
Clearly, the financial aspects of moving abroad are key to the
success of the whole exercise. Don't shortcut on them; investigate
and research them as thoroughly as possible, get some professional
advice (or at least research it, so that you can make an informed
decision whether to pay for it or not) and be as sure as you
possibly can be that the finances will work.
If you haven't read the other pages of the Guide, click the links
in the box to get the whole picture on moving abroad.
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