Relocation dilemmas

Dilemma #1: Location of the house

At the outset, it is important to realize that you travel 5-6 days a week to your workplace (unless you freelance or consult!). Therefore, if you want to save on time and money is not a constraint, take a place as close to your office as possible. However, let's not dwell in the realm of idealism. There are several other factors that are important while making the location decision - a) accessibility of the location, b) availability of public transport (if you don't have your own vehicle), c) quality of neighborhood, d) safety, e) amenities, recreation, and conveniences (health club, theater, home delivery, etc), and f) location of friends and family. If you have a choice between 2 locations, one close to your workplace (within a radius of 15-min driving distance) and the other an hour away, I'd suggest compromising on some of the a-f elements to save valuable time and get peace of mind. When it comes to rentals--and this is where people get stuck--weigh the incremental rent (if applicable) against the other costs (commute for example), and time and effort saved. Living close to office also improves work-life balance and possibly increases your productivity at the workplace.

Dilemma #2: Furnished vs unfurnished apartment

Again, several factors affect this decision as well: a) furnishings/assets you currently own, b) newness and quality of furnishings in the apartment you are considering, c) estimated duration of stay in the new apartment, and d) who are you moving in with, just to name a few off the cuff. If you are well established in your career, know where you want to be, have a family, and already own a refrigerator, the unfurnished option might work out better for you. Else, just go for the furnished one, boy. You're better of paying a slight premium for a furnished place instead of assuming the costs and hassles of buying/renting, maintaining, servicing, and disposing assets. Also, ownership of assets can become an issue: if a group of 3 friends stay together and have bought the assets jointly, who claims ownership to them?

Dilemma #3: Own vehicle vs public transport

Use public transport - you not only save on substantial money and effort, but can also feel good about the fact that you are a socially responsible citizen (remember, go green by saving fuel!). When deciding to buy a car, do me a favor - don't just look at your EMI. Open your eyes to reality and look at the lifetime cost of owning the car - upfront payment + EMI + fuel + maintenance + driver salary + depreciation. Also, don't forget the hassles of car wash + parking and the possibility of breakdown at the most unwanted time in the most unreachable location. I can guarantee you that the monthly outflow of owning a car will be 3-5x the outflow if you use public transport.

Exceptions: If you have a family (including a baby), live in a location where public transport is not easily accessible or is exorbitant, or already own a car, you might want to consider otherwise.