Relocation is a major life decision that impacts not just you, but also your family, friends, and your Business too. All these stakeholders should be firmly on board and be in the loop at every stage of the process.
However, as the head of the family and/or of your business, the most significant aspects of the move do become your own responsibility.
It’s important to start planning the move at least six months ahead of schedule so that you have enough time to tie up all the loose ends, make sure the process is smooth, and give yourself enough time and space to handle the physical, emotional, and Financial stress.
However, relocation also means new opportunities and potential success, both financial and personal. You may choose to move as a family and this means that you have to take the points of view of everyone in the family.
What Does Moving Really Entail?
According to the US Census Bureau, nearly 40 million people in the US move every year. The postal department reports that they process more than 30 million change of address requests annually.
You may be expanding your office and Moving some people to another state. Or you could be pulling up roots and setting up business in a brand-new location. Perhaps you’re just moving two blocks away.
There could be many reasons to move, such as better labor and workforce or newer markets to explore. You may also want to lower manufacturing costs, increase cash flow or upgrade facilities. Many business owners move to smaller cities in search of a better quality of life for themselves and their loved ones. Often, there’s not just one single reason, and it could be a combination of different ones that drive the relocation.
Whether it’s a long or short distance you’re moving, relocation has the potential to disrupt your professional and personal life. They can also be expensive and result in unexpected drains on resources. Today, the cost factor isn’t as important as it used to be a few years ago, because there has been some leveling of costs across geographies.
Perhaps you want to stay close to target markets or ensure lower transportation costs. This has seen a new trend of people moving away from prime areas in cities and flocking to the suburbs.
Tax concessions are available in many parts of the country based on land use. Some business owners who own land in industrial areas may be able to sell their land at a tidy profit, and purchase/rent in less expensive areas.
Safety and crime rates can drive many business owners to seek more security in smaller cities.
For instance, when you are planning on moving to Boise you would typically have to take several of these reasons on board.
What Financial Aspects To Consider Before Inter-City Location
Since relocation involves important financial aspects as well as others, let’s focus on them and figure out how to negotiate these complex issues.
1. Costs in New Location:
Your major costs will be infrastructure-related. Surveys show that the going rate for industrial properties hovered around 0.63/sq ft in 2020. Warehouses and distribution centers that are the backbone of e-commerce are in high demand. Rent prices have been steadily but slowly rising in downtown Boise. Today, however, the work-from-home culture has impacted commercial property prices all over the state. Retail spaces are slowly increasing in rental values. Check the current property rates and escalation patterns in the area before you sign up.
2. Thriving Economy:
A winning combination of lower taxes is, a realistic and sensible state budget, and a business-friendly regulatory environment make Idaho one of the Top 10 Business Friendly states in the US. The state also has the 2nd lowest property tax rate in the country. The job rate is projected as the 3rd highest, while the entrepreneur-friendly environment and relatively simple licensing laws are a great boon for start-ups. The close synchronization between business and education has led to the development of several prestigious business incubators. However, it’s also important to consider whether the city’s culture is in sync with your business. This will help to attract the right talent and ensure the growth of your business.
3. Taxes:
Before you make the move to Boise, it’s important to evaluate the tax structure and compare it with where you’re coming from. The Annual Tax Burden Study 2017 revealed that the state’s total tax burden per head is ranked at 48th out of the 50 states. It is nearly 30% below the country’s average. The property tax rates have also been lowered substantially. The sales tax rate has been raised recently. Regarding personal income taxes, Idaho’s ranking is 22% below the national average. There may be tax breaks available locally. Keeping these numbers in mind, you can make suitable changes to your financial planning after consulting a professional taxation expert.
4. Long-Term Growth:
It’s important to create long-term financial plans and ensure the growth and stability of your wealth. This can be done prior to your move if you’re able to connect with local financial experts who can give you the right advice and information. In terms of personal finance, you will need to revise or rework your estate plan. This is because estate and probate laws differ across different states. If you have a will, this may require updation. The formation of a trust may become necessary to protect your assets. If you still continue to own property in your own location, decisions will have to be made about renting or lease. You may also have to rework your health care and insurance plans, and investment strategies.
5. Cost of Living:
Idaho has a relatively lower cost of living. However, it’s wise to get yourself updated on housing, education, healthcare, daily living needs, commute, and transportation requirements. Collect data regarding these aspects and it will become easy to create a tentative budget. It will also help you to decide which part of Boise to live in, which schools/colleges your kids will go to and where you can get the best facilities for entertainment and leisure according to your lifestyle preferences.
