Executive Relocation

Executives relocating to another city have a number of critical questions that need to be considered.

Costs

It costs a lot of money to relocate so an executive should first find out who will be responsible for the cost of moving. Will your employer cover the cost of your relocation? Or will you have to foot the bill yourself? Check out the company policy on relocating. If they do not have one it will be possible to make enquiries about the industry standard. Many companies will cover the costs or pay a bonus to defray costs incurred by the move.

Temporary moves
If the move is considered a temporary move it will be necessary to consider the cost of housing in each city. It may not be worth selling a house in one city if a return is imminent in a year or two. Also to be taken into consideration is the growth potential for housing in each city. Renting is an option that should be seriously considered if you are moving from a high growth area to a low growth area.

Tax advantages
A good accountant will be well placed to advised on the potential for savings when negotiating a salary package in conjunction with any housing costs incurred.

Expenses prior to moving
Check out how many trips to the new city will be paid for. It may be necessary to take the whole family a number of times to the new city to look at potential homes. Who will cover this expense? It is important to keep in mind the many costs involved in a move such as travelling costs/airfares, loan establishment fees, stamp duty, pre-purchase inspections and legal fees.

Spousal employment
When relocating it is essential to consider the issue of spousal employment, especially when a second income is relied on to cover mortgage and other expenses. Larger companies often have policies in place to cover these situations and facilitate employment for spouses in the new city. If not, it will be essential to factor this major change into any potential benefits gained by the move.