Argyll and the Isles tops list for business owners and investors planning a move

Argyll and the Isles tops list for business owners and investors planning a move

According to new research from Rathbone Investment Management, 21% of high net worth individuals and business owners across Scotland have considered moving their business to Argyll and the Isles. 

The study found that nearly two thirds (61%) of high net worth’s and business owners across Scotland have considered a property move in the last year.

Covid-19 has presented its own set of challenges since March 2020, forcing many to adapt to new ways of working and rethink their home environment. As a result, many are considering moving out of cities to more rural locations, to enjoy more green space or coastal living.

Rathbones Investment Management also found that 21% of business owners have considered relocating their firms to Ayrshire and Arran, while 19% are drawn to Greater Glasgow and the Clyde Valley.

Some have even thought about moving out of Scotland entirely with 12% considering moving elsewhere in the UK. Looking further afield, 12% said they had considered Europe, excluding the UK, and 5% considered moving to the Americas.

Kindar Brown, financial planner at Rathbone Investment Management, commented: “Lockdown has forced us all to spend a much greater amount of time at home, with many navigating home working, home schooling, exercise, and socialising all under one roof. Understandably, it’s meant that many have reconsidered their home environment and thought about a move. More rural locations have become popular choices as people yearn for more outside space and the daily commute becomes less of a factor to consider.

“If thinking about moving home, it’s important to factor in the true costs of moving as well as your new living expenses and lifestyle costs. These can be very different in a countryside location than in a city. It’s easy to only consider the purchase price of the new property, but there are many other costs which need to be factored in. More often than not, these need to be paid upfront, so small actions like budgeting early and factoring these into total costs can help with an overall savings plan.”

For those considering a property move, Kindar Brown shares her top financial planning tips to consider:

  • Factor in the cost of moving

Moving to a new home requires careful planning and consideration as there are many associated costs that need to be factored into your overall budget. There are the costs of both buying and selling to consider which includes Land and Buildings Transaction Tax, legal fees, Home Report and survey fees as well as perhaps mortgage arrangement fees. It is also easy to forget about the cost of actually moving; if you are moving some distance to a more rural location the cost of a removal company could be much higher than expected.

  • Take into account whether you’re upsizing or downsizing

Upsizing can be costly, with the step between a semi-detached and detached home costing approximately £115,000 more.[1] If you are thinking of making this jump, make sure to account for the increase in house price and what this means for monthly mortgage repayments, as well as the overall impact on monthly spending.

For those who are planning to downsize, this may mean you’ll release some equity from your property. There are lots of things to consider if you choose to do this, such as how much money you want to release or save on mortgage payments, where you’re downsizing to, as well as how this may impact your finances in the long term.

  • Consider your finances if moving abroad

The cost of living may be lower if moving abroad but getting there may not be. As well as moving costs, there are other things you’ll need to consider if choosing to relocate overseas. For example, what will happen to your existing property, your pensions, or any other investments which are rooted in the UK? If you have any ISAs, for example, once overseas you will no longer be able to contribute to them.

Depending on where you move to and how long you intend to stay for, you’ll also need to consider what to do with your pensions. Be aware though, there could be tax implications so make sure to seek advice on what your best options are financially.

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