Go west, young man.
For years the West has held the promise of adventure and opportunity. This is still holding true in Canada today as the West's abundance in oil, gas and other natural resources is transforming it into the economic engine of the country.
According to the Alberta government, the province has accounted for 61.6 per cent of Canada's employment growth in the last year.
Another study by Statistics Canada shows that the oil, gas and mining sector is the best one to find a job in, with only 1.1 job seekers for every job. This compares to a general rate of 3.3 job seekers for every job in Canada.
The worst is forestry, with 37.4 job seekers for every job followed by education (10), arts and entertainment (9.2), construction (5.1), manufacturing (4.8) and retail (3.8).
Moving to find work or relocating to take a better job has been a part of Canadian life for a long time. "Recently, however, it has been the booming economics of Canada's western provinces that has lured some Canadians away from their home towns," says Myron Knodel, director of tax and estate planning with Investors' Group. "Pulling up stakes isn't easy -- it's disruptive and can be costly."
Before taking the plunge to move in search of greener pastures, there are some financial factors people should consider such as the price of housing and the overall cost-of-living in the new jurisdiction where you plan to relocate.
Consumer Price Index (often referred to as cost of living index) figures from Statistics Canada show that Vancouver, Winnipeg and Montreal were slightly below Toronto for 2011 while Halifax and Calgary were higher.
Prices in Calgary increased 2.2 per cent in 2011 over 2010 compared with 2.3 per cent in Vancouver, 2.8 per cent in Montreal, 2.9 per cent in Winnipeg, 3.0 per cent in Toronto and 3.5 per cent in Halifax.
Housing prices can vary greatly in different regions in the country. The average price of a house in April this year in those same cities varied from a low of $261,263 in Winnipeg to $735,556 in Vancouver.
In Canada, gains made on houses or condominiums are tax free as long as they are your primary residence. However, if housing costs are significantly higher in the new jurisdiction you may have difficulty finding a similar living situation for the same money and you may have to borrow to afford it.
Mortgages generally are transferrable from jurisdiction to jurisdiction, but if you do have to close out your mortgage you could get hit with redemption fees for breaking it before it expires.
Then there are legal costs and, in some provinces, land transfer taxes apply.
These are provincial taxes levied on real estate that changes hands. They are the responsibility of the purchaser and can range anywhere from 0.5 per cent to two per cent.
Many provinces have a multi-tiered taxation system. If you purchase a property for $260,000 in Ontario, for example, 0.5 per cent is charged on the $55,000 and one per cent is charged on $55,000 to $250,000 and 1.5 per cent is charged on $250,000 to $400,000.
Land transfer taxes are charged in British Columbia, Manitoba, Ontario, Quebec and Nova Scotia.
Moving costs can be another big expense.
Sometimes the employer will pay the costs of moving you to a new location. If you pay your own moving costs, you can deduct some of them against your earned income.
Generally you should be able to charge costs such as travel, lodging and meals related to looking for a new home, costs of moving your belongings, legal costs, real estate commissions on selling your old home, land transfer costs on your new home and carrying costs and mortgage interest on your old home.
Other major factors to consider in a relocation is the employment opportunities of your spouse or partner and the impact that it will have on your children and their education.
So it's important to take into account all the financial, personal and familial costs before deciding to relocate. "Even if the job offer appears irresistible, before uprooting your entire life and family, research all the ramifications and get some expert advice," Knodel says.
Talbot Boggs is a Toronto-based business communications professional who has worked with national news organizations, magazines and corporations in the finance, retail, manufacturing and other industrial sectors.
