Asked To Move For Work? 2 Relocation Perks You Should Request
Posted on: 15 April 2015
When your boss asks you to relocate for work, your mind might automatically gravitate towards the hassles of moving. After thinking about how to pay for everything, you might be tempted to let someone else take that new office in that exciting city. However, if you click here for info, you don't have to let a few logistical concerns ruin your chance for an adventure. Here are two relocation perks you should request, and how they might transform your move:
1: Cost of Living Benefits
If you don't live in an expensive city, you might be surprised with all of the small expenses you encounter after you move. Unfortunately, since the cost of living can vary significantly from place to place, it might be hard to maintain a similar quality of life. Here are a few examples of how your financial picture could change, based on where you move:
- Taxes: Since housing markets and laws are different in each state, your property taxes might change drastically when you move. For example, while property taxes only account for .18% of the total property value in Louisiana, that number skyrockets to 1.76% if you move to Wisconsin—almost ten times more.
- Healthcare: If you are asked to move to a remote area, you might find that your healthcare expenses increase since there are fewer professionals. For example, if you move from Las Vegas, Nevada to Juneau, Alaska, seeing an eye doctor will cost you about $104.33 more.
Fortunately, you can estimate cost of living differences by referring to online financial calculators. These free tools can show you how each individual line item compares, and how much more you would have to make to maintain a similar quality of life. For example, if you moved from Nevada to Alaska, you would need to make 23.26% more to maintain your standard of living. To fend off financial woes, ask your employer about cost of living benefits. Some businesses will offer a monthly stipend to cover new expenses, so that you can live comfortably in your new city.
2: Loss On Sale Protection
If you have been asked to move quickly, you might worry about what it will mean to take the first offer on your place. What if they buyer offers less than you owe on your house? If you lose money on the deal, you might not be able to afford a nice place when you move. Fortunately, some employers offer loss on sale protection as part of relocation packages, so that you can remain financially viable. For example, if your home appraises for $350,000 but it only sells for $339,000, your employer might give you the $11,000 you probably would have received—had you waited for a better offer.
Since the overall sales price isn't the only way you might lose money on your home, some employers will also pay for these potential expenses:
- Improvements: Do you need to make a few changes before you list your home for sale? If you have to replace carpet or fix up the sprinkler system, your employer might cover the cost to get your house on the market.
- Closing Costs: Whenever you sell a home, you have to pay closing costs, which can be as much as 2-5% of the total sales price. That means if you sell your place for $250,000, you might have to come up with as much as $12,500. However, since closing costs are directly related to the sale of your home, some employers will take care of closing costs on your behalf.
Before you discuss the details of your relocation package with your employer, carefully consider your potential expenses. By bringing them to the table, you might be able to kick back and enjoy the experience.Share