Everything you need to know about moving interstate in Australia

Australians are always on the move – literally! The average Aussie packs up and moves house 13 times in their lifetime. And in the five years leading up to the 2021 Census, nearly one in 20 made the big move interstate. 

If you're thinking about packing your bags and moving to the other side of the country, you're not alone. But while it's a well-trodden path, it's not necessarily a walk in the park.

Your move might involve juggling logistics, transportation, and securing employment. And if you're a homeowner with a mortgage, there's even more to think about - selling one property, buying another, and managing the financing, or perhaps renting out your current home while leasing or purchasing in your new location. It's a lot to wrap your head around.

To help you navigate the journey, let's dive into everything you need to know about moving interstate in Australia – complete with a handy checklist to make the process smoother.

Planning your interstate move: Where to start

The first place you probably want to consider is where to move to. After that, you'll likely start thinking about your budget. Let's assume you've already set your heart on your new home – perhaps the cosmopolitan Melbourne or the idyllic Sunshine Coast.

How much does it cost to move interstate in Australia?

"The cost of moving interstate in Australia varies based on several factors, including the volume of your belongings, the distance between locations, accessibility at both properties, and the time of year," James Morrell, CEO of removalist comparison and booking platform Muval, told Your Mortgage.

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He noted that, on average, you're moving costs could be in the range of:

• One or two bedroom apartment: $2,500-$4,000

• Three bedroom house: $5,000-$7,000

• Four bedroom house: $7,000-$12,000

"While these are general estimates, the best way to get a comparison of more accurate prices is to source quotes," he said.

And while you might expect a DIY move to cost less, it's important to weigh the oft-forgotten costs associated such as truck rental, fuel, packing materials, and potential damages.

Professional tip: Consider backloading

People move interstate all the time. Chances are someone's planning a move to your neck of the woods. If that's the case, there might be an empty moving truck already leaving your area – and you could organise for it to take your things on its return journey.

"Booking a backload for your interstate move can save you money if you're flexible with dates," Mr Morrell said. "This will mean your move is likely cheaper, but you'll need to fit into someone else's schedule."

How to choose a moving company

"There are over 8,000 moving companies in Australia, and finding a good one can be tricky," Mr Morrell said.

"Look for companies with strong reputations and experience in interstate moves.

"Accredited companies, such as those approved by the Australian Furniture Removers Association (AFRA) or Muval, are often a good choice."

Professional tip: Avoid peak seasons

Moving during peak season (typically November to March) can be more expensive.

"If possible, schedule your move during off-peak times to save money," Mr Morrell said.

Further, make sure the companies you're getting quotes from are promising to provide all that you need. No one wants to rock up to their new digs to find their belongings left on the doorstep of a two-story home.

"Request detailed quotes from removalists and be clear about any potential challenges, such as narrow staircases or limited parking. This will help avoid unexpected costs," Mr Morrell said.

Moving with a mortgage: What to know about an interstate shift

One third of Australians own their home with a mortgage, and it stands to reason that plenty such homeowners move interstate every year. While the process can seem daunting, it's entirely doable. There are several tools and strategies to help make moving with a home loan smoother and more manageable:

Bridging loans: Buying before you sell

Thinking of selling your current home to buy a new one in another state? The chances of both ownership transfers aligning perfectly on the same day are slim. This timing mismatch can be financially tricky, especially if you already have a mortgage.

Enter bridging loans. These specialised mortgage products allow you to borrow the funds needed to buy your new home while still holding onto your current property. During the transition, you'll typically only pay interest on the loan taken on the new property until your old home is sold.

Here are some of the most competitive bridging loans available on the market now:

Important Information and Comparison Rate Warning

Refinancing your home loan to access equity

Another option for buying your new home before selling your current property is to refinance your mortgage to unlock equity. If your property's value is higher than your remaining mortgage balance, you can refinance to access the difference in cash.

This equity can then be used as a deposit – or even the full payment – for your new home. Once you've sold your existing property, the proceeds can be used to pay off the original mortgage, leaving you free to enjoy your new home without added financial stress.

Home loan portability: Moving with your mortgage

If you're selling your current home and buying another, it's worth checking if your mortgage includes a portability feature. This allows you to transfer your existing loan from your current property to your new one without closing the mortgage.

While not available on all loans, it's a common inclusion – so it's worth asking your lender if it's an option for you.

Selling, renting, or rentvesting

Not sure if your new location will be a perfect fit? You might consider renting out your current home while renting in your new area – a strategy known as rentvesting.

This approach allows you to:

• Generate rental income, which could cover your mortgage repayments

• Enjoy the flexibility of renting to explore your new area without committing to a long-term property purchase

Alternatively, you might decide to sell your current home outright and rent in your new state until you're ready to buy again. This could simplify your finances and reduce the stress of managing two properties during your move.

Your ultimate moving interstate checklist

If you're considering or gearing up to move interstate, here's all the information you need to make your journey as smooth as possible:

Before the move:

• Research removalists or self-move options and compare quotes
  "Concierge services like Muval help to identify companies instantly who have availability when you need it," Mr Morrell said.

• Declutter and sell or donate unwanted items
  "Reducing the number of items you transport can significantly lower costs," he noted.

• Contact utility providers and other services
  It's important to arrange disconnections and new connections where they're needed. Your provider will likely be able to guide you through the process.

• Arrange temporary accommodation if needed
  If you're driving to your new home, you'll likely need to book accommodation for the road. Or you might wish to find a short-term rental in your new location to live in until you begin putting down roots.

• Insure your belongings
  "Ensure your belongings are adequately covered for accidental breakage during the move," Mr Morrell said. "Discuss coverage with your chosen moving company and consider additional coverage if necessary."

• Get excited about your upcoming change of scenery
  While moving to a new place can be stressful, chances are it will be well worth it. Try not to let the details of moving remove the shine from your exciting new life.

During the move:

• Pack strategically and make sure to clearly label boxes
  Whether you're going down the DIY route or turning to professionals, it's important everyone knows where boxes will go once they enter your new home (and, trust me, you'll want to know which box the kettle is in once you arrive).

• Keep essentials in a separate bag
  Make sure you pack important documents, a few changes of clothes, and your everyday toiletries in an easily accessible place.

• Keep children and pets in a low-stress environment
  This may mean arranging baby sitters or separate transport for the little and furry ones in your life.

After the move:

• Update your address with government and service providers
  Welcome to your new home! First things first, once you've retrieved the kettle, make yourself a cuppa and update your address with the Australian Electoral Commission and other service providers.

• Register vehicles and transfer licenses
  In most cases, people moving interstate within Australia have just weeks or months to transfer their drivers licence and vehicle registration or risk facing potential fines.

• Explore your new neighborhood
  After all that's done, all that's left to do is enjoy your new home.

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