If you’ve been thinking about relocating abroad for a while, whether to New Zealand for ever or to Spain for a year or two, ask yourself these six simple questions.
Having a clear plan before you move abroad will help prepare you for the future and set realistic expectations for arrival. If you’re at that “getting serious” stage, answering these questions will help to focus your attention and test the viability of the idea. Having a clear plan before you move abroad will help prepare you for the future and set realistic expectations for arrival. If you’re at that “getting serious” stage, answering these questions will help to focus your attention and test the viability of the idea.
As early as possible, you need to start gathering a “dream life abroad fund
1. Where is the ideal place to relocate?
Have you already nailed down the place you wish to relocate, or are you weighing up a few different options? If you’re considering moving abroad it’s time to do some serious research on the whereabouts. Work out the essentials first: why bother looking to move to Australia if you’re over 50 and are not millionaires – it will be a struggle! Be honest with yourself about whether, for example, you really intend to put in the hours to learn a foreign language. Consider factors like visas, how to stray in touch with friends and family, language and work opportunities. Being brutally honest with yourself is advisable at this stage. Narrow down your options to the top two or three choices and consider booking an initial scouting trip. If you have only ever visited this place in high summer, maybe book an off-season trip.
If you’re delaying your move due to worries over affordable healthcare, don’t! Read our guide to getting good quality healthcare wherever you are in the world. Download Healthcare Abroad 2018.
2. Can you afford to move?
You are going to face an onslaught of costs when moving abroad. First off, there will be financial matters to settle at home. Are there ongoing payments you will need to budget for? Will you sell your property and “burn your boats” or rent it out and risk voids if a tenant leaves? You will need to factor in the cost of moving yourself and your belongings abroad. Or were you thinking they would fit in a Ryanair overhead locker! After you arrive you will need to work out accommodation, food and other immediate expenses you will encounter during the first few weeks. As early as possible, you need to start gathering a “dream life abroad fund”.
3. What will I live on in my new place?
Unless you are living off savings you will need to consider how you will derive an income once in your new location. Will you need to find a job, and if so, is there plenty of work in your field? Will you be able to maintain your UK income while living abroad? If you’re retired how will you access your pension and will you be eligible for annual increases? For those continuing to derive an income or pension in the UK, using a payment specialist like Smart Currency Exchange can be a great way to transfer money to your new location.
Don’t just dream, plan!
4. Will I rent or buy?
What will you do for accommodation after you arrive? If you plan to buy have you researched laws and regulations affecting non-resident buyers in your new country? If in Australia, you can forget about buying that old and beautiful beach house – you are only permitted to buy new. What are the costs of buying and what is the local real estate market doing, is it a buyer’s or a seller’s market? If you plan to rent have you researched rental availability in your new location? What are the normal customs with renting, are short term rentals common or do most landlords require longer term leases?
If you’re buying a home on a strict budget, learning a few negotiating tips could net a you more house for your money. Download our guide, How to Negotiate Abroad. It’s written by a licensed estate agent and is packed with insider tips.
5. Is this a short, medium or long-term plan?
To help plan for your relocation it’s important to have an idea whether this move will be a short, medium or long-term change. This will help you plan for living, job-related expenses and what your immigration path will be. It will also determine how you sort your affairs back home before you leave. For example, why worry too much about healthcare in Spain if you’re only going there for the early stages of your retirement?
6. Should I keep a home in the UK?
For some people who moved abroad in the boom years of the mid-2000s, the global financial crisis came as a shock. Suddenly they realised that their Spanish or Bulgarian property had not kept pace with UK property values and they could not return as home owners. Since the Brexit vote and the fall in the value of the pound, the same people are quids in! It is an important consideration, however. The good news is that there is a wide range of investment properties, from Buy to Lets to student accommodation and Real Estate Investment Trusts that should keep a portion of your wealth keeping pace with UK property values while you’re living it up on the Spanish costas.
After asking yourself these six essential questions we hope you have more clarity on where your next overseas adventure will be!