Leaving the comfort and familiarity of home is never easy. There’s a sense of security in knowing the places you visit often and seeing familiar faces, but sometimes, you just want a change. Or maybe you have a great career opportunity in a new city that makes it worthwhile to leave your comfort zone.

Whatever the reason, you need to plan and budget carefully before you take the leap.

Relocating as a young professional

With businesses trying to cut costs wherever they can, it’s less likely that your new employer will offer financial help to relocate – especially for an entry-level position. In the movies, relocating to a new city is as simple as packing a suitcase and hopping on a flight. But in real life, you’ll need to take your finances into account before you start working out where you’ll stay and the lifestyle you can afford.

Financing your move

Moving to a new city comes with a long list of expenses like your first month’s rent and deposit, basic furniture, groceries, cleaning supplies, crockery and cutlery, appliances, transport, water, and electricity. The initial months starting your new life can be costly. Luckily, the bigger expenses like furniture and appliances are once-off costs, so they won’t strain your long-term budget.

However, getting the cash together to cover your moving costs can be tricky, especially if you’re just starting your career. If you don’t have enough savings, borrowing from friends or family might not be a good idea. A personal loan could be the solution in this situation. Instead of opening multiple store accounts, which may have high interest rates and can affect your credit score negatively, a single personal loan provides the flexibility of cash on hand. This allows you to buy what you need from the outlet offering the best deal – including thrift stores, where you can often find good bargains on furniture and kitchenware.

With a Nedbank personal loan, you could also qualify to get R200 a month* cashback throughout your loan term, subject to certain terms and conditions.

* Read the full terms and conditions.

Costs to take into consideration

If you’re already living independently and are simply moving to a new city, your relocation costs will be different to those of someone moving out on their own for the first time.

• Housing costs
  
  First timers
  You’ll need to save for a deposit and the first month’s rent. Typically, the deposit will equal 1 month’s rent, but some landlords ask for up to 2 months’ rent as a deposit. The landlord must place your deposit in an interest-bearing account. The deposit is entirely separate from your first month's rent, which will be required before you move in. There are also other costs like agent and application fees that you’ll need to keep in mind.
  
  Already established
  If you are already renting and have kept the place in good condition, your landlord is legally obliged to return your deposit, plus the interest it has earned. You can use this towards the deposit on your new rented home. However, keep in mind that a new city can mean higher property prices in general, so factor that in when you’re looking for a place to rent.
  
  
• Paying for a moving van vs buying new
  
  First timers
  You’ll probably be buying most of the things you need, like furniture and appliances, for the first time. It makes sense to buy these items in your new city and save yourself the cost of hiring movers. Be sure to check delivery costs, especially for large appliances and furniture. While friends and family may offer you some of their household items, consider what it will cost to move these items to your new city. You could thank them politely but explain why it’s more cost-effective to buy what you need at your destination and suggest that they donate to a charity shop instead.
  
  Already established
  If you already have all the furniture and appliances you need, focus on the logistics of packing up and moving everything to your new city. In this case, including the cost of professional movers in your relocation budget makes sense. If there are items you’d like to replace, consider selling them and using the money towards replacing them at your destination.
  
  
• Flying vs driving
  If you don’t have much to take with you and if you’re making this move on your own without a vehicle, then packing your belongings and booking a flight with additional check-in luggage will work. Keep an eye out for flight deals that fit your budget. If you’re a Nedbank Greenbacks member, you can also get up to 30% off on your flights with selected airlines when you book through Greenbacks Travel on Avo SuperShop.
  
  However, if you have your own vehicle, are taking a pet, or have family helping you move, driving to your new city might be more practical. You can also earn Greenbacks when you use your Nedbank card to fill up at bp, so you can make those kilometres count.

•  Insurance
  
  First timers
  Insurance may seem like an unnecessary added expense, especially with all the other costs you’re facing. However, with the money you invest in getting your own stuff, the last thing you need is a flood, power surge or even a break-in to set you back and have you replacing everything again. Even if your landlord has insurance on the building, you’ll still need home contents insurance to cover your belongings.
  
  Already established
  If you already have insurance, you’ll need to update it with your new details. Your new living situation may affect your premiums, so speak to your broker to iron out any uncertainties. It’s also wise to get insurance for your home contents while they’re in transit. Speak to your insurance broker and the moving company about this.

City-specific costs to keep in mind

Each city will have its unique challenges, but these are some cost factors to keep in mind that are specific to Johannesburg, Durban, or Cape Town.

Johannesburg

Jozi has a long history of being the place to be to further your career – from the initial gold rush to its evolution as a hub for corporate head offices. However, its popularity means steep rental costs and higher costs of living. The city’s water and electricity infrastructure are also in serious disrepair, so budget for backup power and water supplies.

Durban

Durban’s public transport system is not the most reliable, so carpooling is more common. You’ll need a reliable vehicle – and remember that the sea air will mean more rust that you’ll need to repair, whether on your car or your appliances. While the cost of rent is generally lower in Durban than in Joburg or Cape Town, finding a safe, well-maintained rental property will take some research.

Cape Town

Cape Town experiences frequent drought, so the city imposes a water tariff to develop and implement long-term water solutions. Cape Town has also topped the list of Africa's most expensive cities, so you can expect a higher cost of living. The high salt content in the air also creates issues with rust and tarnishing.

A personal loan from Nedbank can help you manage these expenses effectively, providing the flexibility of cash to make smart money moves. Nedbank now offers personal loans of up to R400,000, ensuring you have the financial support you need for a smoother transition to your new city. Plus, with Nedbank you can qualify for cashback rewards, making your move even more affordable.