How to Move Out of Your Parents’ House?

Have you taken the decision to spread your wings and move out of your parents’ house? Well, accept our heartiest congratulations! Now is the time to start adulting, and it begins with planning for the life-changing move ahead.

Here’s our detailed guide on how to take that first leap out of the nest – read along to find out!

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1. Move Out for the Right Reasons

Moving out of your parents’ house is definitely one big step. It requires you to think about things properly and consider all possible outcomes before finalizing your decision. We, therefore, advise that you must ask yourself the following questions:

• Am I ready for the big change that lies ahead?
• Am I tired of living under the watchful eye of my parents and the boundaries they have set for me?
• Do I want to get a taste of living independently?
• Am I financially capable of paying my own rent and bills responsibly?
• What is my gut feeling telling me?

If your answer is an affirmative nod, then we understand that it’s time for you to take that big decision. However, you must spend some time deliberating over your decision if you’re moving out because:

• Your friends have done the same.
• You’ve had a temporary argument with your parents or siblings.
• You just want to spend your small amount of savings for the sake of feeling independent.

2. Are You Ready to Move Out?

Once you have figured out the reason for taking this leap, you must also determine if you’re ready for the kind of responsibility that comes with moving out. We advise that you plan thoughtfully and consider the following most important points:

How Will You Fund Your Move?

The very first step is to determine how you’re going to finance the entire move. Take your time to work out all relocation expenses, from the initial rent amount to the cost of new household supplies. Compare the expenses with your income to see if you have enough in your pocket to finance everything.

Pro Tip:Make sure you have saved enough in your emergency fund to pay for unplanned expenses.

Are You Financially Ready for Your New Life?

While the idea of moving out may sound liberating, you must have the financial ability to wear the big shoes. Since you’ve spent your whole life under your parents’ roof, you may not have an idea of all the expenses you’d have to afford.

Consider your source of income, the stability of your monthly paycheck, and the amount you have saved to fund your move. If you think you’re financially ready to take up the responsibility of paying for your dream home and the bills that will follow, then we wish you good luck!

Here’s how you can make the financial burden of the big move a lot easier to manage:

Make a List of All Fixed and Variable Expenses

Before drawing up your budget, work out your monthly fixed and variable expenses.

• Fixed Expenses include the costs that almost remain the same for each month.
• Variable Expenses include the costs that will continue to change each month.

Listing down both types of expenses is a good way to start planning for your move.

Following are some common fixed expenses that you must consider:

• Rent;
• Utilities;
• Health insurance;
• Car insurance;
• Car payment;
• Student loan payment;
• Subscriptions and service providers;
• Transportation pass.

Following are some common variable expenses that you must consider:

• Groceries;
• Restaurants – the cost of eating out;
• Clothing;
• Entertainment;
• Travel;
• Fuel cost.

Draw up a Realistic Monthly Budget

It’s important to know how much you’ll spend on monthly essentials and non-essentials. Calculate the amount you’ll be spending on rent, groceries, phone, transportation, insurance, etc. Also, consider the amount you may spend on non-essentials, like entertainment, eating out, and a new pair of shoes. Total these numbers and compare them with your monthly income. Do you think you can finance that figure with your current income and save something for the rainy days as well? If yes, then you’re good to go!

A pro-tip from our experts? Take a close look at your spending habits and income streams. If you spend without looking at your bank account balance, then you must have more than one income stream to live independently. It means that you must work more than one job at a time.

Establish Your Credit

Having a good credit score will bring you closer to your home ownership dream, as it will help you in getting a home loan from banks at lower interest rates.

Oh, and did we tell you? Even if you go for the option to rent, the property managers always review your credit history. By assessing your credit history, the manager will get an idea of whether you pay your bills and rent on time or not.

To establish good credit, we suggest you sign up for a credit card and use it to pay for expenses. Make sure to pay your full bill on time every month. This way, you’ll get a good credit score and history on your record.

Now, are you thinking about what is considered a good credit score? Well, ideally, a score of 700 or above can get you a handsome amount of loan for home-ownership. If you want to improve your credit score, here’s what you can do:

• Pay your credit card bill on time;
• Maintain minimal or no debt;
• Avoid applying for new credit.

Start Saving Money for a Down Payment

Are you planning to purchase your dream home? Now is the right time to start saving money for a down payment by reducing unnecessary expenditures. Cut down on travel expenses or start shopping wisely because it will get you closer to owning your dream home.

Start Saving Money for an Emergency Fund

Probably the most nerve-wracking part of moving out is running out of money. This is why we advise that you start setting aside some amount every month for building an emergency fund. It is always good to have enough in your emergency fund to finance a few months worth of expenses. Work out the amount of all potential expenses and multiply it by 4. This way, even if things go south, at least you’ll have an ample amount in your fund to finance yourself for 4 whole months!

Do You Have Enough Knowledge About the Costs of Home Ownership or Renting a Place to Live?

Having sound knowledge of all the costs associated with home ownership or renting is critical.

Owning a home is much more than just paying your monthly mortgage. Make sure you’re well aware of all essential details of the down payment, the cost of insurance, property taxes, utilities, maintenance, and other related expenses involved.

If you’re planning to rent a place to live, keep an eye on the prices of rental properties in your preferred areas. We suggest you gather all information about the cost of an apartment lease at your desired location because each area has a different median rent.

The apartment lease price depends on these factors:

• Location;
• The architecture of your chosen residence;
• Number of rooms in the apartment;
• Additional features like gyms and pools;
• Other design benefits, such as an apartment patio;

Where Do You Want and Can Afford to Live?

We know that you’ve dreamed of building a life on your own for all these years. While you’re stepping into that world of independence, it’s understandable if you’re having second thoughts about where you want and can afford to live.

Our experts advise that you answer the following questions to make that big decision:

How Close Do I Want to Be to My Family and Friends?

Ideally, you must ask yourself if you want to live close to your family and friends or if you want to move far away to start a new life. It may depend on your circumstances. For example, if you want to stay in contact with your old group of friends and hang out with the same bunch, find a place nearby.

Will I Find a Job & Are There Any Opportunities for My Career Growth?

Once you’re drawn to a specific area, ask yourself if it has the right opportunities to support your career growth. Imagine moving to a new place with no potential job opportunities – it is a recipe for disaster, and we strictly advise against it. Check out job trends and vacancies in an area and then make the decision.

What Is the Cost of Housing and Living Where I Want to Live?

Perhaps one of the most important factors is to consider the cost of housing and living in your desired area for residence. It is important to note that the cost of living differs for each city. Common factors that make up the cost of living in an area are:

• Housing – the cost of housing differs depending on your decision to buy a house or rent one. Make sure to also consider the down payment and maintenance costs.
• Food – include the cost of groceries and eating out.
• Transportation – the cost of fuel and public transportation make up this cost.
• Healthcare – cover the cost of visiting doctors, hospital, and emergency care.
• Utilities – don’t forget to add the cost of electricity, water, gas, and internet when calculating the cost of living.
• Taxes – there are a number of taxes that you’re required to pay such as real estate tax, sales tax, local income tax, and the like.
• Entertainment – if you’re fond of going out, watching movies, or retail therapy, make sure to add those expenses.

What Social Aspects Are Important for Me in My Neighborhood?

When considering a new place to settle in, it’s easier to get swept away with the finer interior details. However, you must not forget to closely evaluate the neighborhood you’ve shortlisted for your new home. If you’re not happy with the neighborhood you’ve moved to, the process of relocation is going to be one daunting task.

We’ve listed all the important social aspects that you must consider when shifting into your own separate place:

• Safety – look at the crime stats of the area you’re moving to.
• Access to care – make sure to locate the nearest police and fire stations, emergency rooms, and hospitals.
• Convenience – close proximity of restaurants, banks, grocery stores, and retail is one crucial aspect.
• Parks – the neighborhood must have parks nearby.
• Community centers – aiming to make friends? Community centers are what you must look for in your new neighborhood.

3. Talk to Your Parents

As a matter of fact, you must plan your leap out of your parents’ nest by having that life-changing conversation. Once you’re ready to move out, talk to your parents, let them know about your plans, and take all the advice and assistance they have to offer.

Are You and Your Parents Emotionally Ready?

The decision to move out of your childhood home can be a little too difficult for you and your parents. Understandably, no one is ever emotionally ready for this big transition, but talking through will help you and your parents get accustomed to the idea. This will also give you the chance to acknowledge your feelings and prepare for the upcoming change!

Pick Your Parents’ Brains About How to Adult

Growing up, we always rely upon our parents for the smallest of tasks like fixing a door lock or assembling a new piece of furniture. But, have we ever thought about how much they’ve experienced as adults to reach this point in life? Well, this is why it’s important to learn from their experiences on how to win the game of adulting. Grab this opportunity, sit down with your list of questions and get all the answers you need from your parents.

4. Search for a Place to Live

Here comes the best part – the hunt for your first home or apartment! You can either choose to buy a house or rent a space, depending on your budget. Whatever decision you make, don’t forget to consider the important details like costs associated with buying or renting.

Renting

Diving deep into the world of renting, you’ll get to know that rented places can be expensive. If you’ve decided to rent an apartment, you must understand all the factors that affect the rental prices.

What factors affect the rental price?

• Location of the apartment/condo/home;
• Number of rooms;
• Quality of construction or architecture;
• Additional features including apartment gym and pool;
• Other design benefits;
• Renting family homes.

Buying / Mortgage

Eyeing the possibility of home ownership? Consider the options for a mortgage to make the home-buying process easier. Each type of home loan has a different requirement of qualifying credit score and down payment, and don’t forget to conduct detailed research on those.

While some things may sound a little too technical, it is important to keep an eye on them to make the right decision. We have outlined for you some important points to consider when buying your own space:

Rental Property Depreciation

Rental properties are a great source of passive income. Although leasing does not influence your mortgage approval when buying your first home, you can still rent the space for a faster loan payoff. Rental property depreciation allows you to take tax deductions on your fixed asset.

Capitalization Rate

This rate helps you in determining the expected rate of return on your real estate property investment. Calculate this by dividing the net income your property is expected to generate by the current market value of the property.

Property Classes

You must also consider the property class of the home or apartment that you’re investing in. After all, it’s your hard-earned money.

Each property has a different class based on its geographic, demographic, and physical characteristics. We advise that you look at the architecture, quality, neighborhood, and year of property construction before purchasing.

Property Tax Deductions

Perhaps one of the greatest benefits of owning a property is the property tax deduction. If you’re a homeowner filing your tax returns, you can always deduct property taxes you have paid throughout the year.

Mortgage Options

Confused about the available mortgage options for buying your first home? We have a list sorted for you:

• Conventional Loans
• Loans backed by private financial lenders instead of government agencies are called conventional loans. Funded by private lenders, they are often purchased by government-sponsored enterprises later on. To qualify for this loan, you must have a credit score of 620 or more.
• FHA Loans
• FHA loans are the opposite of conventional loans. These are backed and insured by the Federal Housing Administration, demanding a low credit score. While they may require a small amount in down payment, you’d have to pay a mortgage insurance premium for the life of the loan if your down payment is less than 10%.
• VA Loans
• Backed by the Department of Veterans Affairs (VA), this loan is extended to veterans, service members, and their surviving spouses. There are no requirements like minimum credit score, down payments, or mortgage insurance.
• USDA Loans
• If you’re planning to build your new home in a rural area, the USDA loan backed by the US Department of Agriculture is your best option! This loan charges a minimal rate of interest and has no down payment requirements.

Searching by Yourself

Once you’ve finalized the decision to home-buying, you can start searching for homes by yourself or contact a realtor for professional help.

If you’re searching by yourself, make a list of the type of property you want to buy, your desired neighborhood, and the price of each property when you go out for the hunt. This way, it’ll be easier for you to decide which place from the list fits your preference and budget. When filling in the application, get help from your friends or family members who have successfully secured home-ownership.

When You Should Consider Hiring a Realtor

Real estate agents have deep knowledge of the property market and know how to simplify the complexities for you. If you’re considering buying property in an entirely new neighborhood or lack the basic knowledge of the real estate world, we advise you hire a realtor. Local realtors know all available options under your budget, submit your application, negotiate on price, and keep you in the loop along the way.

5. Develop a Move-Out Plan

Now that you’re only a few steps away from your first taste of freedom, it’s time to work out a moving checklist. Make a moving plan to make the big transition less daunting.

Here’s a basic moving checklist to help you get started:

• Get furniture for your bedroom and living room including a bed, sofa, chairs, or anything that you think is needed in your new apartment/home;
• Don’t forget to get essentials like a mattress, pillows, blanket, sheets, etc.;
• Bathroom essentials including toilet paper, soap, shampoo, cleaning supplies, and towels;
• Kitchen essentials like cookware, kitchenware, canned food for the first few days, and cleaning supplies;
• Laundry supplies like detergent, pegs, baskets, and hangers.

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6. Set a Move Date

Once you’ve got your moving checklist ready, set a realistic move date. Make sure that both you and your parents are on the same page.

Are you confused about selecting an official day and date for moving out? Well, you can base your decision on the following grounds:

• If you’re purchasing your home, your final offer will have a mutually agreed closing date. This way, you’ll know when you get the keys and set the move date accordingly.
• If you’re renting the space, you’ll agree with your landlord on a move-in date when signing the lease papers. A bit of expert advice? If you’re moving in the mid of the month, negotiate for a prorated rent price – pay only for the amount of time since you’ve moved in.

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7. Declutter, Donate, or Sell Extra Items

We’re sure you must have so much stuff to declutter. Don’t make the mistake of moving with items you won’t need – after all, minimalism is the new luxury.

As a starting point, we advise that you donate your gently used items to local charities. Got extra items in your closet in good condition? Organize a moving out sale on the marketplace and earn some extra cash. If you have large items that you can’t easily get rid of, consider hiring a junk removal company.

8. Move Out Prepared

Figured out all details of the big move and are ready to move out? We know this is the moment you’ve been waiting for! Now you must decide whether you want to move on your own or hire professional movers to handle everything for you. Here are our two cents on both:

Do-It-Yourself Move

Doing it yourself? Make sure to plan ahead of time to make things easier to manage.

• Find Packing Supplies
• From moving boxes and bubble wrap to moving blankets and tape, make a list of all the supplies you’ll need. Packing supplies are easily available across retail stores online. Ask around if a friend has moved recently and is willing to give away moving boxes for free – this will help you save some money. You may also use rented plastic bins if boxes are not easily available.
• Start Packing
• If you own a piano, and you want to take it with you when moving out, think about the ways to do it in advance.
• Once you’ve got your hands on packing supplies, start packing your stuff. We suggest you pack your non-essential items first and then pack the essentials a day or two before the move. Make sure to label each box, as it will help you easily unpack.
• Ask Friends and Family to Help
• You shouldn’t be packing and moving all by yourself, so don’t shy away from asking your friends and family for help. Get them to help you with gathering supplies, packing, lifting, and moving to make things manageable. Don’t forget to cover the floors in your house when moving your belongings, so you won’t damage it, and your parents won’t get mad and you’ll avoid extra expenses.
• Rent a Truck
• Don’t forget to rent a moving truck to move your valuables from your parents’ home to yours. There are many options for truck rental companies, so hire the moving truck from a reputable company.

Hire Professional Movers

Moving itself is a stressful task, so we suggest you don’t take the added burden of managing it on your own. It’s always a good idea to hire professional movers, especially if you’re moving far away or have many items to move. Movers have a range of supplies to safely relocate your belongings while you look after other important tasks. Make sure you receive a COI from your movers before your move day if your building management requires one.

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9. Set-up Utilities

We know you’ve been living under your parents’ wing and probably have no idea about setting up utilities. Imagine walking into your new home with no electricity, water, or gas. Sounds scary, no? That’s why you need to have the following utilities put in your name before your move date:

• Electricity and gas;
• Water and sewage treatment;
• Internet, phone and cable;
• Home alarm system;
• Insurance companies including life, auto, property, etc.;
• Medical and dental services;
• Banks and credit card companies for mail statement services;
• Newspaper, magazine and other subscription providers.

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10. Change Your Address

Once the moving date is closer, change your address to receive your mail to your new home. USPS has the easiest online facility to request an address change.

Don’t forget to update the address with your bank, credit card companies, college (if you’re attending one), or employer. It’s also a good idea to inform your close friends and send out a message communicating your new address.

11. Unpack at Your New Home

Congratulations, you did it! You successfully saved enough to buy or rent your place and took the first step towards building your dream life. It’s time to start unpacking and setting up your new home.

Give yourself some time to get used to the new place. Focus on the essentials and necessities in the beginning. The luxuries can always come once you’re settled in the new space.

12. Celebrate With a Housewarming Party

After all this hard work, you deserve to celebrate this accomplishment with a housewarming party! It doesn’t necessarily have to be extravagant – call your close family and friends, get some good food and celebrate with them.

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