How Can Your Relocation Package Help You Find an Australian Home?
7-MINUTE READ
So, you have been offered your dream job in Australia! How will you be able to relocate and remember everything that needs to be done?!
A relocation package takes care of the transfer to Australia for you, with many packages making your move effortless! But, what exactly is a relocation package and can it help you to find a home Downunder?
What Is an Employee Relocation Package?
A relocation package is an incentive provided by an employer to entice you into accepting a new job overseas. Your current employer may also offer you a relocation package if they need you to move to a different location.
The aim of providing a relocation package is to funnel the best employees into different locations.
Moving to a new country is an expensive process and most employees would not fund the relocation themselves. Therefore, to attract the best employees, relocation packages offer major incentives!
What Is a Typical Relocation Package?
A standard relocation package will cover your travel to the new location and at least a temporary location. You may also receive a flexible start date to provide you with a few days to unpack and settle.
In some circumstances, a free trip to the new location may be available if you are unsure about the move. Depending on the location, you may also expect a cost of living pay adjustment.
Larger companies may offer elaborate relocation packages that take care of everything! You will receive a packing and unpacking service, a moving service, and even help to sell your home. You may be provided with assistance to buy or rent a new home in your new location.
Are Relocation Packages Common?
Relocation packages are relatively common today, with packages used to develop a business’ brand and image.
Previously, only headhunted individuals at the highest level of a company would receive help to relocate. Today, it is common across a highly educated and global workforce.
What Should Be Included in a Relocation Package?
Your relocation package should contain everything you need to transfer to your new location.
The package will typically include:
- Assistance to sell your home
- Packing and moving service
- Insurance for your belongings
- House hunting expedition
- Paid travel to your new location
- Paid travel to visit your home country once per year
- Temporary housing in your new location
- School fees if you have children
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Assistance to Sell Your Home
Depending on how quick your employer wants you to locate, they may provide you with assistance in selling your home.
This may include paying to advertise your home for sale and covering necessary fees. The package could additionally cover any shortfall you face if you need to accept a below-market price for your home.
Packing and Moving Service
Ideally, your relocation package will cover the cost of packing your belongings. It should also cover the moving service, and deal with the unpacking once you have arrived.
An employer experienced in relocation should have reliable services in place to make sure your packing is safe. The package may also cover storage fees if your belongings need to be transferred to storage facilities.
Insurance Cover
Your relocation package should include insurance cover in the event of any luggage becoming lost or damaged.
House Hunting
Your employer should pay for a trip for you and your family to explore your new location and find a new home.
Paid Travel
Travel to your new location will be part of your relocation package. In addition, many packages also consist of paid travel to and from your home country once per year.
Temporary Housing
Your package may come complete with a home for you to live in, or you may have to find your own home. Your employer may provide temporary housing for you in the country until you have found a permanent home.
School Fees
If you have children, your relocation package may include payment for school fees. This may be an automatic incentive from your employer, or you may need to negotiate this cost into your package.
What Types of Relocation Packages are Available?
There are 5 types of relocation packages available, although each employer may operate relocations uniquely.
1. Reimbursements
Some relocation packages are reimbursed once you have relocated. You will need to pay for all relocation costs and then submit receipts as evidence. Your employer will then reimburse the money you have paid.
Check with your employer what expenses they will reimburse. Unfortunately, not all relocation packages include every cost involved in moving. You can then budget appropriately for any other costs that your employer will not reimburse.
Furthermore, many employees may take around a month to reimburse the money you have spent. This process may take even longer if any evidence is in dispute.
2. Package Payment
Your relocation package may include a lump sum payment that you can use any way you want. You could prioritise some aspects of the relocation over others and tailor your package for you!
It is important to plan out how you will spend your package payment, budgeting accordingly. You should avoid spending frivolously and then lacking enough money to finish the relocation!
3. Direct
Your employer may regularly use a team of relocation services. They will then assign a range of professionals to complete your relocation and then pay the bill directly.
This relocation method ensures that all costs are covered and there is no impact on your bank balance! You should also receive a perfect service from these professionals who are individually skilled at what they do!
4. Third-Party
Third-party services are available for employers to complete a full relocation. They deal with the whole package for you and your employer without relying on other service professionals.
5. Additional Assistance
Packages may include more than just the costs to move to a new location. It may also include help for you to secure a visa in your new country, and assistance to settle.
Get a free Australian mortgage assessment today.
Can I Negotiate My Relocation Package?
Negotiating your relocation package is expected by major employers to find you the most comfortable transfer. In particular, if you have children you will need additional assistance from your employer to relocate.
Read through your proposed relocation package thoroughly. What is included in your package? How will those costs be paid?
Consider what costs your relocation package has not included. What do YOU want the relocation package to include? Perhaps childcare and school fees are a major consideration for you?
Search relevant competitors and assess their relocation package offering. Use this information as a negotiating tool when discussing your relocation package with your employer.
When negotiating with your employer, try to be flexible. Could you pay for the packing and moving service if your employer pays for an item on your ‘must-have’ list? Could your employer agree to cover 50% of school fees?
It is important to understand that most employers will not give you everything you want. You will need to be open to compromise. However, it is important to ensure that the relocation makes financial sense for you and your family. Be honest with your employer!
Can My Relocation Package Help Me Find a Home in Australia?
Your relocation package will ensure that you have a place to live once you arrive Downunder. You may have your rent paid in full for the period you are in living in Oz. However, can you BUY a home in Australia?
Buying a home in Australia is a great investment. By the time your relocated assignment has ended, your property may have increased in price considerably! But, how can you buy a home in Australia, and can your relocation package help you achieve this?
Your relocation package will be tailored to your needs and the capabilities of your company. If your company is willing to pay a substantial amount of rent for you, negotiate with them!
You could ask your employer to cover stamp duty fees and legal fees, whilst you pay your deposit and repayments.
However, buying a home in Australia requires a professional broker to guide you every step of the way. Odin Mortgage’s brokers are Expat experts who can find you the perfect home loan deal to buy an Aussie home!
Australian Expats
If you have Australian citizenship and are moving back to Australia, Odin Mortgage can offer you amazing rates! You are at no disadvantage to resident Aussies, despite living overseas. Find out your borrowing power using our Borrowing Power Calculator now!
You could also be entitled to apply for government incentives depending on your income! Read our FAQs today and find out why you should use Odin Mortgage to secure your home loan!
Permanent Residents
Australian permanent residents who have been working overseas can also find a great deal with Odin Mortgage. Find the latest comparison interest rates for home loans today!
Foreign Nationals
If you are moving to Australia as a foreign national, we can still help you buy a home in Australia! The process is longer and more expensive, although it is achievable.
You will need to receive permission from the Foreign Investment Review Board before buying a house in Oz. It will cost several thousand dollars to apply, however.
You will also need to pay a stamp duty surcharge on top of the standard Aussie Stamp duty fee. Fees vary depending on the state or territory you want to buy a home in. Check out our Stamp Duty Calculator today to discover how much you will pay!
Contact Odin Mortgage Today!
Odin Mortgage is a team of Australian expat experts who want to find the best deal for you to get your approval to buy an Australian property! Our service is free for you to use as we recover our fee from the lender you choose.
Request a call back from Odin Mortgage today and see how a mortgage broker can help you find an Australian home!
Get a free Australian mortgage assessment today.
Frequently Asked Questions
How much does the average relocation package cost?
Each relocation package will be tailored to individual needs and so costs will vary. Package prices begin at around $20,000 but can rise considerably if additional costs are covered in the relocation process.
What is ‘relocation assistance’?
Relocation assistance is a government program in Australia, entitled Relocation Assistance to Take Up a Job. This program is for job seekers who have been asked to relocate for at least six months. This may be for a job or an apprenticeship and covers relocation expenses.
Grants begin at $3,000 to relocate to a capital city or $6,000 to relocate regionally. Additional grants of $3,000 are available if you are relocating with a child.
Contact one of the following services for more information to access relocation assistance:
- Community development program provider
- Employment services providers
- Disability employment services
- National customer service line
How can I buy a home in Australia once I relocate?
Contact Odin Mortgage before you relocate and find out how we can discover your perfect home loan in Australia!
We are Expat experts skilled in finding the best mortgage deal for you. Visit our Testimonials Wall now to find out what our customers say about our service!
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