Kids are expensive. I am sure its not a surprise to anyone even vaguely related
Kids are expensive. I am sure its not a surprise to anyone even vaguely related to children but the dear little things tend to be a costly bunch – whether its school fees, new shoes (HOW do they go through so many shoes?), braces (!) or simply keeping their voracious appetites in check.
Beyond the obvious little (and not so little) costs, children can also have a double impact on one of your biggest costs (and the one more relevant to this column) – housing. Whether its wanting each to have their own bedroom, a yard for play and pets or getting in that sought-after catchment, it doesn’t take long before the itch “for a bit more space” can take hold.
I know in my own circumstances, the addition of more little feet in the house has been the major motivator for at least half of my property moves – transitioning from a unit (which I still miss), to my first house, through to the current home. As one would expect, with more home, comes more costs, in the form of purchase price, higher stamp duty and of course those beloved ongoing commitments of rates and insurance. Lucky the kids are cute, right?
Worth looking out for as you embark on this endeavour, is the effect of children on your borrowing power – with each additional dependent reducing the amount a typical bank will lend. Add to this the reduced income of a parent taking leave and timing can be crucial. If your family’s growth is measured in x out of 40 weeks, you might want to slip a meeting with your broker in between ultrasounds particularly if you are looking towards the top of your budget. I wouldn’t however particularly recommend making your move too close to the big day – the stress of moving house isn’t particularly welcome in amongst everything else!
Of course, at the other end of the line, there can be some excitement as the nest empties and downsizing (or “right-sizing”) comes to the fore. Whether it be a smaller home closer to town, or conversely a larger one in the country, there can be a thrill in being able to choose your next address without concern for commute, school run or number of bedrooms. Being firmly in that earlier phase for now though, I’ll continue to be in that school drop off line for some time to come…