Before you fly off to foreign shores, consider the cost of leaving home, warns Belinda Beresford
With accountants taking overseas exams while doing their South African articles, and medical students reportedly planning to leave en masse, the sound of the packing of bags has become background noise to many South Africans.
While many people don’t formally emigrate but simply slip overseas with a suitcase or three and just don’t return, removal companies report a steady rise in the number of people packing up their lives and going. Stuttaford Van Lines estimates last year saw about a 25% increase in the number of private individuals heading towards foreign shores, compared to a rise of about 18% in 1996.
If you are thinking about moving countries, the financial ramifications can be far- reaching and many of the potential costs cannot be given an explicit value. You may face a lower standard of living – particularly if you move to somewhere like London, which is notoriously expensive.
If you are moving unilaterally and not under the aegis of a company, you risk a setback in your career path. Professionals may need to re-qualify, or find their experience counts for far too little when competing for employment.
Other implicit costs are the loss of your social and work network. Making friends and contacts can take time. Furthermore, if you are ambitious, reflect that you’ll probably be moving to the proverbial larger pond.
One advocate who considered emigrating decided against the idea after discovering that his friends, who had moved to the United Kingdom, not only earned less than him, but worked harder for the money.
On a more visible level, you also have to consider all your financial obligations in South Africa. These include any debts you may still owe on your house, car or even university loans. Selling a house can take some time, and if you’re facing a deadline you may end up settling for a lower offer simply to liquidate your assets. The amount you owe on your car may be more than you can realise immediately by selling it.
It could seem tempting to cut your losses and run, but it’s not a good idea. You may think you are not going to come back, but never is a long time. Dealing with a dismal credit record and possible legal action would not be a good start if you did return.
If you have decided to move, you need to consider how much to take with you. Should you move all your furniture, the household appliances, maybe even the car? Removal companies do get asked to ship cars overseas – usually the decision is dictated by a balance between the expense of moving the vehicle and how much is would cost to replace it.
However, the direct costs of moving can be formidable. Elliott International estimates most private removals cost between R25 000 and
R40 000. Stuttaford Van Lines’s director of international operations, Louis le Roux, says the most popular destination for private emigrants is the UK, followed by Australia, New Zealand and Canada.
The standard quote given by removal companies is door-to-door. A team of workers armed with string, tape and cardboard descend on your home wrapping and packaging everything – including the pets if you so desire. The next time you see your possessions is when they arrive at your new home.
Stuttaford Van Lines estimates an average family comes close to filling a 12m container, while a young couple probably uses a 6m container. A 12m container from Johannesburg to the UK would cost about R45 000, with the smaller size at R25 000.
The removal companies say they try to include as many standard costs as possible in their quotes, to help clients pay with rands rather than precious foreign exchange. However, this can mean you face unexpected fees for duties and taxes, or special customs inspections of your possessions.
The initial quote also tends to exclude insurance, although the removal companies offer to provide it.
Although you can arrange your own insurance, Le Roux says this can prove a false economy. In the event of a claim there can be a dispute whether the damage occurred while your possessions were the responsibility of the removal company or your own.
You may also have to consider your beloved Fido. Veterinarians’ surgeries are full of animals looking for new homes because their owner is emigrating. An alternative is to take them with you.
Removal companies will organise this for you, through specialist animal travel experts. Stuttaford Van Lines says the average cost of airfreighting a small to medium dog is R2 500. Then you have to add quarantine costs, which in the case of the UK amount to around R16 a day for six months.