Tag: Domestic Relocation

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Corporate relocation tips Domestic Relocation Challenges Domestic Relocation Tips Global Relocation Challenges Global Relocation Tips Relocation Challenges Talent Management

Overcoming Challenges in Relocation Programs

How can a company excel at overcoming challenges in relocation programs? Global Mobility Solutions’ 2019 Forum included an inspiring presentation by Eric McElvenny, a military husband and proud father of three children. Eric graduated from the United States Naval Academy in 2006. Following his graduation, Eric had the privilege of serving 7 years in the United States Marine Corps. Eric’s final military deployment was to Afghanistan. On this deployment, Eric was wounded during combat operations when he stepped on an improvised explosive device (IED). This injury led to a new journey into triathlon racing.

Eric shared his story from the military to the finish line. Also, he presented the habits we can use to embrace life’s challenges. When not training and speaking, Eric can be found with his family in Pittsburgh, Pennsylvania.

What are the Challenges in Relocation?

Eric described many challenges he faced, including learning a new career and finding his inner strength to complete his first Iron Man Triathlon in 2013, held in Hawaii. His story was insightful, and he was given a standing ovation by the grateful attendees.

In relocation, the challenges may not be as daunting as learning a new career or competing in a triathlon. However, an experienced Relocation Management Company (RMC) will have the knowledge and expertise to help your company excel at overcoming challenges in your relocation program.

Overcoming Challenges to a Location

Your company may have several locations. What if one of the locations is in a remote or challenging area? Helpful information about the location will be key for new hires and transferees to make the decision to relocate. Our global relocation experts present five specific tips to help move employees to remote and challenging locations:

  1. Pre-Decision Services Including Candidate Assessment and Expectations
  2. Community Tour of the Location During Interview
  3. Include the Family
  4. Offer Spousal or Partner Assistance
  5. Destination and Video Spotlights for Challenging Locations

Using these five tips can help a company communicate the many benefits new hires and transferees can expect with their relocation.

Recruiting Top Talent in a Tight Job Market

Talent acquisition can be challenging for any organization. During a tight job market, competition for qualified candidates makes recruitment efforts even more difficult. Overcoming challenges in talent acquisition during a tight job market is key to an organization’s ability to grow and meet strategic corporate objectives. Several points in relocation can help companies recruit top talent:

  1. Leverage Social Media
  2. Pre-Decision Services to Identify Concerns and Issues Prior to Relocation
  3. Leverage Relocation Package in the Hiring Process
  4. Policy Exceptions for Relocation Packages
  5. Increase Compensation Where Necessary for Highly Skilled Talent

Beyond the challenges of a tight job market, industries facing a skills gap also benefit from these tactics. Global relocation to fill positions requiring a high level of skill has become a solution for several industries including healthcare and information technology services.

Overcoming Challenges in Retaining New Hires

As difficult as it is to acquire talent, companies must address retaining new hires and overcoming challenges that result in failed relocations. In our newly published Case Study on Educational Institution Relocation Programs, we note several reasons why our client, a university, was losing new hires.

The overarching challenges for our client located in a small city in the eastern part of the United States:

Spouses were feeling left out of the decision-making process. As a result, many dual career couples that moved to the campus had a difficult time adapting if there was no job for the spouse. Also, recruiters could not help the hiring manager determine how to budget for the relocation. The institution’s decentralized approach provided no insight as to the overall relocation spend across the university.

Our team identified seven specific points for our client’s relocation program:

  1. Act as the university’s knowledgeable partner
  2. Provide superior local area information to highlight desirable aspects of the area
  3. Engage with candidates during pre-decision
  4. Create full accounting and tracking systems
  5. Implement satisfaction surveys
  6. Measure time for acceptance rates before and after program
  7. Provide information on all aspects of the relocation including tax impacts

By creating a relocation program that covers all of these points, our client experienced a measurable increase in new hire retention and transferee satisfaction. They also experienced a reduction in overall relocation costs. Overcoming challenges in new hire retention helps organizations direct more resources toward their strategic objectives.

What Does This Mean?

Companies faced with overcoming challenges in their relocation programs should examine the areas that will improve their transferee’s experience. By enhancing their relocation programs, companies will be more successful in recruiting talent, retaining new hires, and moving employees and their families to challenging locations.

What Should Employers do When Overcoming Challenges?

Companies should work with an experienced and knowledgeable Relocation Management Company (RMC). RMCs provide a wealth of solutions for overcoming challenges in relocation programs. Companies should review their relocation programs. This will help ensure they have a competitive advantage. Also, it will ensure their program provides the highest level of relocation benefits and services for their employees.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients in overcoming challenges with relocation. As a result, our team can help your company understand how to move transferees to challenging locations. We can also help your company recruit top talent in a tight job market and retain new hires.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online to discuss overcoming challenges in your company’s relocation program, or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

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Domestic Relocation Tips Employee Development Global Relocation Tips

Pre-Hire Assessment is a Valuable Talent Recruiting Tool

Business meeting on the train

Global Mobility Solutions (GMS) is the original pioneer of the benefits of pre-decision services such as a pre-hire assessment for relocation. Our clients know that partnering with us at the start of the relocation process helps identify the markers of a successful relocation. It also greatly enhances transferee productivity.

Our team of global relocation experts also knows that assessments are valuable tools for our clients. Working with clients to review their relocation policies, we often find areas where we recommend improvements. If clients are not using assessments, we recommend adopting this valuable tool.

What is a Pre-Hire Assessment?

A pre-hire assessment is a recruiting tool that is used to help identify qualified candidates for open positions. Competency analysis is one of the most common features of a pre-hire assessment. Another feature is the tool’s ability to summarize and interpret results of the assessment. Most companies use assessments for positions that require a high level of skills, are professional in nature, or are executive positions.

What are the Benefits for the Client?

Clients receive a number of benefits by using pre-hire assessments, including:

  1. Pool of candidates that possess requisite skills
  2. Talent assessment notes skill gaps
  3. Results may indicate candidates’ viability for additional positions like management
  4. Help predict new employee’s future performance
  5. Reduction in administrative time devoted to the recruiting process

What are the Benefits for the Candidate?

Candidates also receive a number of benefits by participating in pre-hire assessments, including:

  1. Candidate can easily assess whether they have the skills for the position
  2. Assessment tool may give candidate an indication of corporate culture and expectations
  3. Ability to present additional skills and qualifications beyond resume and cover letter
  4. Objective data in specific areas may help candidate’s overall presentation
  5. Quicker determination for candidate’s ability to proceed in recruiting process

What Should Employers Expect When Using a Pre-Hire Assessment?

Employers should expect that assessments will help their organizations recruit qualified candidates more quickly and efficiently. The ability to select from a pool of qualified candidates that have completed the assessment will reduce administrative time and increase the speed of the talent recruitment process.

What Should Employers Do?

Employers should review their talent recruitment programs to determine if they need to add a pre-hire assessment. Employers with pre-hire assessments should review the tool to determine if they should add additional features or invest in new technology that will enhance the process.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients with their talent recruitment programs and pre-hire assessment needs. We can help your company understand how to identify good assessment tools and incorporate them into your talent recruitment process.

Learn how your company can benefit from pre-hire assessments and pre-decision services from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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Buy a Home

8 Differences Between a Relocation Appraisal and a Mortgage Appraisal

Many of Global Mobility Solutions’ clients have transferees who may be participating in a home sale program as part of their relocation package and will require a Relocation Appraisal for their home. This type of appraisal has a different purpose and use when compared to a Mortgage Appraisal. An understanding of these differences will help clients as they work with their Relocation Management Company to manage a successful relocation.

GMS spoke with Mark A. Gronke, Vice President at Fidelity Residential Solutions who agreed to share his advice and guidance on the differences between a Relocation Appraisal and a Mortgage Appraisal.

What are the Differences Between a Relocation Appraisal and a Mortgage Appraisal?

According to Mark A. Gronke, Fidelity Residential Solutions points to 8 specific differences between a Relocation Appraisal and a Mortgage Appraisal. Clients should understand what these difference are, and how they relate to their company’s relocation program. These differences cover broad areas including purpose, use, marketing, and analysis of the appraisal:

Purpose of the Appraisal

  • A Relocation Appraisal will provide an estimate of the anticipated sales price. By comparison, a Mortgage Appraisal will provide an estimate of the home’s market value. Some homes may appraise for more than the contract sales price during a Mortgage Appraisal. This only looks at the anticipated sales price, not the value of the home.
  • The decision making timeframe for a Relocation Appraisal is short term. The timeframe only covers up to 120 days. This accounts for the planning, review, and implementation of the transferee’s relocation process. A Mortgage Appraisal has a decision making timeframe that is long term. The timeframe may cover up to 30 years, the life of a 30 year mortgage. Mortgage lenders look into the future to ensure the home’s value will remain intact over the life of the mortgage.

Use of the Appraisal

  • The intention of a Relocation Appraisal is solely to facilitate corporate relocation. The client receives the report. The client may be looking at indicators that relate to how long the home may reside on the market. By comparison, the intention of a Mortgage Appraisal is to facilitate mortgage lending. A mortgage lender receives the Mortgage Appraisal. The lender may be looking at indicators that refer to the value of the home and its condition. They also may be looking at other factors when considering lending on the property.
  • A Relocation Appraisal would be completed using the Worldwide ERC® Summary Appraisal Form (updated 2010). This would be completed by a trained and licensed real estate appraisal professional following the ERC’s specific set of definitions and guidelines, who is working for the client. A Mortgage Appraisal would be completed using the Uniform Residential Appraisal Form (1004). This would be completed by a trained and licensed mortgage appraisal professional, who is commonly working for a licensed Appraisal Management Company.
  • A Mortgage Appraisal notes the design and appeal of a home. By comparison, a Relocation Appraisal emphasizes design and appeal as critical considerations. Since the Relocation Appraisal has such a short time frame of only up to 120 days, these factors may have a major impact on the corporate relocation process.

Marketing Time and Market Value

  • For a Relocation Appraisal, the marketing time is not to exceed 120 days. This timeframe only reflect the period covering the relocation process. A Mortgage Appraisal’s marketing time does not have a limit, as it does not correspond to a specific, time-defined process. While there may be specific dates related to mortgage terms, the ability to change those dates or accept a lower interest rate in return for paying additional points could extend the timing, if the mortgage lender is in agreement.
  • Marketing a home occurs after the date of a Relocation Appraisal. However, a Mortgage Appraisal is conducted after a home has already been on the market. By the time a Mortgage Appraisal is conducted, there could have been changes to the marketing program or a host of any number of other factors. This information may impact the market value of the home, and in turn the Mortgage Appraisal.

Retrospective Analysis 

  • A retrospective analysis for an appraisal is an overall review of factors that could impact the appraisal’s results, such as any risks that could affect the sale price of the home. The client will use the information for forecasting purposes. A Mortgage Appraisal does not provide for any forecasting in a retrospective analysis. A Relocation Appraisal, however, includes a forecasting component. This is important for clients so they can understand aspects of the Relocation Appraisal that may have future budgetary impact.

What Should Employers Expect?

Employers should expect that transferees who may be part of a home sale program may not understand the differences between a Relocation Appraisal and a Mortgage Appraisal. The employer should understand that they are the client for the Relocation Appraisal. As a result, the employer will receive the Appraisal from the professional. Employers should understand that the Relocation Appraisal is not a Mortgage Appraisal.

What Should Employers do?

Employers should communicate guidance for their transferees who may have questions regarding their home’s Relocation Appraisal. Employers should work with their Relocation Management Company to understand the Relocation Appraisal and how it relates to their company’s relocation and home sale program.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their Relocation Appraisals. We can help your company understand how a Relocation Appraisal relates to your company’s home sale program.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

We're Here to Help! Request a Courtesy Consultation

Are you ready to talk to a Mobility Pro? Learn how GMS can optimize your mobility program, enhance your policies to meet today’s unique challenges, receive an in-depth industry benchmark, or simply ask us a question. Your Mobility Pro will be in touch within 1 business day for a no-pressure, courtesy consultation.

Categories
Home Purchase Relocation Programs

7 Helpful Tips for Transferees to Prepare for a Relocation Property Assessment

Many of Global Mobility Solutions’ clients have transferees who may be participating in a home sale program as part of their relocation package and will require a Relocation Property Assessment. This Assessment is designed to provide helpful information for the client regarding the home’s condition. While not labeled as a home inspection, the Assessment entails a full review of the home by a professional who is fully qualified to perform the Assessment.

GMS spoke with Mark A. Gronke, Vice President at Fidelity Residential Solutions who agreed to share his advice and guidance on this topic.

How Should a Transferee Prepare for a Relocation Property Assessment?

According to Mark A. Gronke, Fidelity Inspection & Consulting Services provides seven helpful tips and recommendations for transferees to follow. These recommendations will allow the Relocation Property Assessment process to proceed in a quick and efficient manner. Prior to the Assessment, transferees should ensure the following:

Ensure Everything is in Working Order 

  1. Check fixtures and lightbulbs to ensure all are in working order.
  1. All utilities must be on for the Assessment, including any pilot lights for natural gas-fed appliances such as water heaters, stoves, and clothes dryers. Check appliances to ensure all are in working order.
  1. Consider servicing all furnaces and air conditioners prior to the Assessment. This will ensure these systems are in working order and may provide a written statement regarding system function.

Compile Records of Repairs

  1. Compile records and evidence for all repairs completed by qualified professionals and technicians. If desired, provide this information to the professional who is conducting the Assessment before it begins.

Provide Clear and Direct Access

  1. Provide clear and direct access to the home’s water heater, air conditioner, furnace, and electrical panels. If you store boxes and other items nearby, move them away so the professional conducting the Relocation Property Assessment can easily reach these areas and appliances.
  1. Ensure the professional conducting the Assessment has three-to-four feet of open space from all garage walls and all foundation walls. This will let them see electrical outlets and the condition of the walls and finishes. Be sure to clear boxes and furniture from storage areas, under any staircases, and crawl spaces. All of these areas should allow clear access during the Assessment.
  1. Remove leaves and snow, and clear away shrubs and brush along the exterior foundation of the home. Any wood piles, trash cans, or bins kept along the side of a home should be moved away from the home’s perimeter.

What Should Employers Expect?

Employers should expect that transferees who may be part of a home sale program understand their responsibilities to ensure clear and direct access to their home for the professional conducting the Assessment. The client for the Relocation Property Assessment is the employer, and they will receive the Assessment from the professional. Employers should understand that the Relocation Property Assessment is not a Home Inspection Report.

What Should Employers do?

Employers should communicate guidance for their transferees on how to prepare for a Relocation Property Assessment. Employers should work with their Relocation Management Company to understand the Assessment and how it relates to the home sale program.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients with their Relocation Property Assessments. We can help your company understand how a Relocation Property Assessment relates to your company’s home sale program.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

Categories
Business Services Global Relocation Talent Mobility

Skills Gap in the United States can be Mitigated with Relocation, International PEO

Many sources recognize a skills gap in the United States. A growing economy generates job opportunities and needs candidates to fill those jobs. When job opportunities expand beyond the local population’s ability to fill those jobs, employers must examine other options. A skills gap affects several industries and locations in the United States.

What can a company do when it is unable to find candidates with the requisite skills? There are several avenues a company can explore when seeking to fill job opportunities. Many companies are able to continue growing by expanding their talent recruitment program’s capabilities. Creative solutions to hiring challenges can help a company achieve success.

What is the Skills Gap in the United States?

Examining the skills gap in the United States shows that technology is driving a need for workers to have knowledge of computers in order to perform what used to be basic job functions. Basic job functions such as following a written set of instructions to mix materials now require computer knowledge to perform the same task. As a result, automation may increase speed and accuracy. However, it also requires a higher degree of knowledge to operate computers and machinery. This is one aspect of the skills gap. Politicians, educators, and employers increasingly focus on STEM programs to address this part of the skills gap. STEM curriculum educates students in science, technology, engineering, and mathematics in a cohesive approach based on actual applications.

Another aspect of the skills gap relates to human interaction and social skills. While much of society increasingly focuses on STEM programs, technology such as powerful Artificial Intelligence (AI) is more likely to automate at least some of these areas. Employers increasingly want written communication, oral communication, team-building, and leadership skills. These soft skills are unlikely to be easily overtaken by AI. As a result, they offer the promise of job stability for employees over a longer period of time.

How Can Employers Mitigate the United States Skills Gap?

There are several ways employers can recruit top talent in a tight job market, and mitigate the impact of a skills gap in the United States:

  1. Leverage social media to expose job opportunities to prospects on these platforms. Passively posting positions or actively presenting via digital ads when seekers enter specific terms into a search engine are all shown to have a positive effect.
  2. Global relocation can be used to fill open positions. The healthcare industry has been facing a critical talent shortage for several years. As a result, healthcare employers focus on several unique solutions such as providing exceptional candidate experiences and creating a superior employer brand. Employers can highlight their company’s relocation program benefits in their recruiting materials to attract talent for global relocation.
  3. International Professional Employer Organization (PEO) lets employers grow their business quickly in international markets. Through this employer of record solution, the International PEO acts as an extension of a company’s Human Resources Department, with a focus on immediate international employment solutions. This lets a company meet demanding business objectives quickly and efficiently.

What Should Employers do?

Employers facing a skills gap impacting their hiring plans should review their talent recruitment programs to ensure creative solutions are in place. A knowledgeable Relocation Management Company can provide valuable assistance to employers looking for robust and effective solutions to hiring challenges.

Conclusion

GMS’ team of global relocation experts has helped thousands of our clients develop hiring and recruiting programs to mitigate the impact of a skills gap. Our team can help your company by using industry best practices to design your relocation program. This will increase your company’s ability to attract and retain new employees and mitigate the effects of a skills gap.

GMS was the first relocation company to register as a .com. The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation™ technology platform.

Contact our experts online to discuss your company’s relocation program needs, or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

Categories
Buy a Home Global Relocation Global Relocation Challenges Home Purchase Relocation Challenges

Mortgage Loan for Foreign Nationals Relocating to the United States

Happy family is standing with keys from their new house in hand. Smiling and looking at camera.

Many of Global Mobility Solutions’ clients have transferees relocating to the United States from outside the country. Often, they will need a mortgage loan to buy a home. These transferees may not have established credit in the US. As a result, they will not have a credit profile that lenders can use to determine their creditworthiness.

GMS spoke with Michael Farner, an expert at Quicken Loans who agreed to share his advice and guidance on this topic.

How Can a Foreign National Obtain a Mortgage to Buy a Home in the US?

According to Michael Farner, if a foreign national has established credit in the US over a period of time long enough to have all three credit bureaus reporting, Quicken Loans would also be able to lend at that time.

Quicken Loans and other mortgage companies have a program to support foreign nationals who are relocating to the US and want to obtain a mortgage, but who have not established credit in the US. The program entails work on the part of Quicken Loans to create a credit profile for the foreign national.

Important Points to Note for Program Eligibility Include:

  1. There must be 0 credit established in the US to qualify for this program. In other words, the foreign national must not have obtained any other credit instrument. Examples may include a loan to buy a car or a credit card in the US.
  2. The foreign national must provide a social security number.

If the foreign national is eligible for the Quicken Loans program, the lender will then build a credit profile for the customer. To do this, the lender may examine the foreign national’s debt in their departure country. This examination will include:

  1. Information on payments for housing, including rent payments, showing 24 months of history for each credit reference.
  2. Information for three other “non-housing” debts that can establish payment histories. Examples may include insurance, utilities, or automobile loans. These debts must also show 24 months of history for each credit reference.

The foreign national may need to assist the lender in obtaining information. The lender may ask the foreign national to participate in a conference call with their departure country’s financial institution.

Once Quicken Loans gathers sufficient information, they will build a credit profile for the foreign national. The credit profile will determine how much they can borrow on a mortgage loan, and the terms of the mortgage.

What are the Features of a Mortgage for a Foreign National?

A mortgage for a transferee who will be relocating to the US is similar to a mortgage for any US-based customer who is seeking to buy a home.

For a foreign national, a mortgage will generally feature the following:

  1. Finances the purchase of an existing home.
  2. Length may be 15 or 30 years.
  3. Interest rate may be fixed or variable.
  4. Foreign national borrower makes principle and interest payments for the life of the mortgage.
  5. Mortgage is often sold to investors in the bond market.

Do Foreign National Transferees Need to Sell Their Current Home Before Applying for a New Mortgage?

Foreign national transferees who are relocating and who currently own a home in their departure country may want to keep their current home. Everyone’s situation is different, and what is possible depends on a number of factors:

  1. Is there a mortgage on the current home in the departure country?
  2. If yes, what is the amount of the current home mortgage?
  3. What are the amount and terms of the mortgage loan for the home in the US?
  4. Can the transferee obtain approval for the total debt load? This would include their current mortgage and the new mortgage loan in the US.

What does this mean?

Foreign national transferees who want to obtain a mortgage in the US to buy a home should review their current financial arrangements with a qualified lender. Transferees who have a mortgage on their current home in their departure country may be able to obtain mortgage for a home in the US. However, this depends on their financial circumstances. Importantly, transferees should understand that they must obtain approval for the total amount of current mortgage debt and the new mortgage loan in the US.

What should employers do?

Employers with foreign national transferees looking to buy a home in the US should direct them to speak with qualified lenders and financial advisors for guidance. Employers should also review their relocation policies to determine if enhancements can be made to allow for exceptions that may arise from foreign national transferees who want to obtain a mortgage in the US.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to communicate to foreign national transferees any issues related to obtaining mortgages to purchase a home in the US. Therefore, our team can help your company understand how best to proceed by providing guidance to foreign national transferees on obtaining information from qualified lenders and financial advisors.

Contact our experts online to discuss your company’s relocation program needs, or give us a call at 800.617.1904 or 480.922.0700 today.

GMS is sharing public knowledge and can help companies more clearly understand mortgage loans for foreign national relocations. However, GMS is not a CPA firm or a lender, and is not giving financial advice. Everyone’s financial situation is different; individuals and employers should consult their lenders and financial advisors prior to making any decisions.

Request your complimentary relocation policy review

Categories
Buy a Home Domestic Relocation Challenges Domestic Relocation Tips Domestic Relocation Trends

Changes in Rules for Home Tax Deductions

A yellow note pad rests on top of a 1040 tax form with a reminder of the new tax laws implemented for 2018.

Homeowners in the United States should be aware of changes to home tax deductions. These changes are important to understand for when they prepare their 2018 tax returns during the 2019 tax preparation season. They stem from the federal Tax Cuts and Jobs Act of 2017. Changes to home tax deductions were implemented to reduce the ability of homeowners to deduct interest on Home Equity Lines of Credit (HELOC) Loans. When HELOC loans are not used for home purchases, building, or substantial improvements, the interest on these loans will no longer be deductible. There are also dollar limits on the total qualified residential loan balances allowable for deductions, an increase in the standard deduction, and a $10,000 limit on the federal deduction of state and local taxes.

What is Home Equity?

Home Equity is the portion of a home that the owner actually “owns” either through paying down their mortgage or growth in the property value of the home. Homeowners who build equity in their home can help increase their net worth. As a result, home equity may offer homeowners a useful source of funds to borrow from in times of need, such as during a home renovation.

Internal Revenue Service (IRS) Issues Clarification for HELOC Loans

The IRS issued a clarification on February 21 of this year in response to several questions from taxpayers and tax professions. IR-2018-32: Interest on Home Equity Loans Often Still Deductible under New Law describes several examples to demonstrate the effects of the new rule. Important points of clarification include the following:

  • Interest on a home equity loan used to build an addition to an existing home is typically deductible
  • Interest on a home equity loan used to pay personal living expenses, such as credit card debts, is not deductible
  • The loan must be secured by the taxpayer’s main home or second home (known as a qualified residence)
  • The loan must not exceed the cost of the home and meet other requirements

Additionally, the new tax reform law imposes lower dollar limits on mortgages in order to qualify for the home mortgage interest deduction. The IRS notes that starting in 2018:

  • Taxpayers may deduct interest on $750,000 of qualified residence loans, down from the previous $1 million limit
  • There is a limit of $375,000 for a married taxpayer who files a separate return. This is down from the previous $500,000 limit
  • The new limits apply to the combined amount of all loans used to buy, build, or substantially improve the taxpayer’s main home and second home

Itemizations Must Exceed New Standard Deduction

To itemize for 2018 taxes, taxpayers must understand the impact of the new standard deduction. The tax reform law states that total home tax deductions must exceed the new standard deduction. The new standard deduction amounts are:

  • $12,000 for singles
  • $18,000 for heads of household
  • $24,000 for married couples who file jointly
  • $1,600 additional deduction for singles 65 and older
  • $2,600 additional deduction for married couples both 65 and older

Limit on State and Local Tax Deductions

The tax reform law places a limit on the federal deduction of state and local taxes to only $10.000. Homeowners in areas of the United States which experience high taxes include those in the Northeast and the West Coast. As a result, these homeowners may experience an increase in their tax liability.

What Should Homeowners Do?

Homeowners planning to file for home tax deductions on their 2018 tax returns should be aware of the changes to allowable deductions on their HELOC loans. They should also be aware of the new lower dollar limits on qualifying mortgages imposed by the tax reform law. Homeowners should be aware of the requirement that deductions must exceed the new standard deduction if they plan to itemize. Homeowners in states with high taxes should be aware of the new $10,000 limit on federal deduction of state and local taxes. In all cases, homeowners should consult a qualified tax professional for guidance on this issue.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand the importance of obtaining professional guidance when it comes to changing tax regulations. We can help your company understand how to communicate the potential impact of these changes to your new hires and transferees. This will ensure they have relevant information as it applies to their relocations.

Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

GMS is not a tax advisor and is only disseminating public information.  You should always consult your own tax professional prior to making any decisions.

Request your complimentary relocation policy review

Categories
Domestic Relocation Domestic Relocation Tips Domestic Relocation Trends Employee Development Talent Management Talent Mobility

Fastest Growing Jobs in the USA Can Be Filled Using Relocation Services

Portrait of young software engineers using digital tablet

The fastest growing jobs in the USA are within several industries. Many of these jobs have education, training, certification, or experience requirements for new hires.  Employers seeking to find candidates with the requisite qualifications benefit from using pre-hire assessments in their talent recruiting process. Pre-hire assessment tools may identify viable candidates in other parts of the country, or even outside the USA. Employers can use relocation services to attract viable candidates who might need to relocate for the position.

Fastest Growing Jobs in the USA for 2018

The Occupational Outlook Handbook published by the United States Department of Labor, Bureau of Labor Statistics, lists the fastest growing occupations. According to the Handbook, 20 occupations will experience the highest increase in growth over the time period 2016-26.

Major industries that have the fastest growing jobs include:

  • Renewable Energy
  • Medical
  • Mathematics
  • Information Technology
  • Operations Research

The fastest growing jobs include several within the Medical and Science, Technology, Engineering, and Math (STEM) industries. These jobs often feature the ability to work flexible schedules, or to work on a limited assignment.

In fact, the rise in short term assignments in healthcare has been due in part to the challenge of finding candidates with the requisite qualifications. Many healthcare companies have been able to attract highly qualified candidates who want to travel to new locations on a regular basis with short term assignments.

Often, the fastest growing jobs are also those that have the highest rates of pay. For example, many Information Technology jobs offer exceptionally high salaries. Within Information Technology, jobs may feature data insight or engineering functions, indicating a wide range of opportunity in this industry.

Labor Force Dynamics Reinforce the Fastest Growing Jobs

The USA’s labor force is undergoing changes that create demand for several of the fastest growing jobs. Slower labor force growth means the labor force will continue to increase in age. Workers who are 55 or older are projected to grow to nearly 25% of the entire labor force by 2026. The increasing age of the labor force and the nation’s population means healthcare practitioners, support, and technical occupations will be the fastest growing jobs through 2026. The aging population along with longer life expectancies and growing rates of illness will continue to increase demand for healthcare services, and in turn, healthcare jobs.

Other occupations outside of the Medical and STEM industries that are also on the list of the fastest growing jobs include:

  • Social & Community Service Manager
  • Fundraiser
  • Pile-Driver Operator
  • Market Research Analyst

What Should Employers Expect?

Employers should expect that the fastest growing jobs will lead to greater competition for qualified candidates. Employers should also expect that they may need to expand their talent recruiting programs to search beyond traditional venues, including outside the USA.

What Should Employers Do?

Employers should review their talent recruitment programs to determine if they need to enhance their relocation policy to better focus on attracting new hires to open positions. Employers should ensure their relocation policies reflect industry best practices. In industries experiencing significant growth, employers should review their talent recruitment programs and relocation policies. They should look into enhancements that highlight the organization’s growth and opportunities. They should also review their programs and policies to highlight the potential for the candidate’s future career growth and success.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients with their talent recruitment programs and relocation policy needs. We can help your company understand how to design your relocation policy to reflect industry best practices and highlight your organization’s growth and opportunities to attract new hires.

Learn how your company can benefit from programs and policies that are designed to attract qualified candidates from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

Categories
Buy a Home Domestic Relocation Domestic Relocation Tips Global Relocation Tips

New Construction Loan for Relocation

finical advisor showing couple their options
Meeting with financial adviser

What is a New Construction Loan for Relocation?

Many of Global Mobility Solutions’ clients have transferees who want to build a new home as part of their relocation and need a new construction loan. GMS spoke with two experts at TIAA Bank who agreed to share their advice and guidance on this topic:

Matt Canfield, Senior Vice President, Relocation and Affinity Lending

Tim Hofmann, Vice President, Construction Lending Administration Manager

New Construction Loan

A new construction loan for a transferee who will be relocating is not the same as a traditional home loan, or mortgage. These are two different lending vehicles that are used for very different purposes.

Mortgage versus New Construction Loan

A mortgage generally features the following:

  1. Finances the purchase of an existing home.
  2. Length may be 15, 20, or 30 years.
  3. Interest rate may be fixed or variable.
  4. Borrower makes principle and interest payments for the life of the mortgage.
  5. Lenders may sell mortgages to investors in the bond market.

A new construction loan generally features the following:

  1. Length is the time it takes to build a home (usually 12 months).
  2. Is similar to a line of credit for a specific amount.
  3. Borrowers/builders submit draw requests to lenders.
  4. Interest is paid only on what is drawn starting at the time of the draw.
  5. Loan remains in the lender’s portfolio and is not sold to investors.
  6. At completion, a mortgage is granted for the new home.
  7. New mortgage pays off the balance of the construction loan.

How Should a Transferee Start the Construction Loan Process?

According to Tim Hofmann at TIAA Bank, transferees should:

  1. Obtain preliminary approval from their lender.
  2. Submit an application for a construction loan.
  3. Transferees should determine if they want to lock their rate in.
    1. TIAA offers an extended rate lock option.
    2. This may be helpful if interest rates are expected to rise.
  4. Choose a contractor and a building plan

What does a Transferee Need to Obtain Approval for a New Construction Loan?

Tim shared the following three items required for approval:

  1. The contractor must be acceptable to the lender. They should have the requisite experience to build a home according to the plans.
  2. The lender will review the contractor and the budget. The budget must:
    1. Be reasonable for the proposed project.
    2. The home’s square footage/size is normal for the area.
    3. Construction costs are reasonable for the quality, size of the home, and the general area.
  3. Lenders approve credit files for the amount of the loan.
    1. If transferee will rent their former home, what is the rental?
    2. For the transferee who will carry both mortgages for the former and the new home, can they carry that debt?
    3. If transferee plans to sell the former home to help finance construction, what is the viability of having the sale occur in the necessary time?

Tim notes that there are a lot of factors to consider for new home construction. Important areas that may impact the process and the timing include:

  1. Will the new home require tearing down an older structure?
  2. Is the building lot included in the cost of the new home?
  3. Will the construction be an extensive renovation of an older structure such as a center-city townhouse?
  4. Are there specific architectural guidelines the project must follow?

Do Transferees Need to Sell Their Current Home Before Applying for a New Construction Loan?

Transferees who are relocating and who currently own a home may want to build a new home. They may want to keep living in their current home until their new home is ready for occupation. Everyone’s situation is different, and what is possible depends on a number of factors:

  1. Is there a mortgage on the current home?
  2. If yes, what is the amount of the current home mortgage?
  3. Will the transferee also be buying the land, or do they already own the land?
  4. What are the amount and terms of the new construction loan?
  5. Can the transferee receive approval for the total debt load of their current mortgage and the new construction loan?

TIAA Bank offers a unique product for new construction loans: OTC. OTC is TIAA Bank’s “One-Time Close” new construction mortgage loan (available only in AZ, CA, CO, CT, DC, DE, FL, IA, IL, IN, MA, MD, MI, MO, MT, NC, NJ, NV, NY, OH,OR, PA, SC, UT, VA, and WA.; other restrictions and limitations may apply).

With OTC from TIAA Bank, the customer only goes through one closing process. During construction, the customer and builder request draws to fund the project. At completion of the home, TIAA Bank only requires a two-page conversion. The customer is able to quickly move into their new home without having to wait for a second closing process. If the customer requires an extension, the two-page extension only requires notarization. TIAA Bank’s OTC new construction mortgage loan speeds the process for customers, and keeps them from having to go through a second, time-consuming closing.

What does this mean?

Transferees who want to obtain a new construction loan to build a home should review their current financial arrangements with a qualified lender. Transferees who have a mortgage on their current home may be able to obtain a new construction loan. However, this depends on their financial circumstances. Importantly, transferees should understand that they must receive approval for the total amount of current mortgage debt and new construction loan amount.

What should employers do?

Employers with transferees looking to build a new home as part of their relocation should direct them to speak with qualified lenders and financial advisors for guidance. They should also direct them to speak with a qualified Realtor® who can assist the employee in determining where they want to live in the new location. Employers should also review their relocation policies to determine if enhancements can be made to allow for exceptions that may arise from transferees who want to obtain a new construction loan.

Conclusion

Global Mobility Solutions’ team of corporate relocation experts has helped thousands of our clients understand how to communicate issues related to obtaining a new construction loan and various alternatives that might be up for consideration. Our team can help your company understand how best to proceed by providing guidance to transferees on obtaining information from qualified lenders and financial advisors.

Global Mobility Solutions is proud to be named and ranked #1 Overall, and #1 in Quality of Service by HRO Today’s 2019 Baker’s Dozen Customer Satisfaction Survey.

Contact our experts online to discuss your company’s relocation program needs, or give us a call at 800.617.1904 or 480.922.0700 today.

GMS is sharing public knowledge and can help companies more clearly understand new construction loans for relocations. However, GMS is not a CPA firm or a lender, and is not giving financial advice. Everyone’s financial situation is different; individuals and employers should consult their lenders and financial advisors prior to making any decisions.

Request your complimentary relocation policy review

Categories
Domestic Relocation Tips Household Goods Relocation Best Practices Relocation Challenges

Household Goods Moves and Your Relocation Management Company

Household Goods Moves and Your Relocation Management Company

Transferees and new hires often require household goods moves from their current location to their new location. Usually this move must adhere to a specific time schedule. It is in the employer’s best interest to ensure that the transferee has a positive and successful relocation experience. A qualified Relocation Management Company (RMC) can ensure that household goods moves are conducted professionally within specific timeframes, and provide service guarantees.

What might transferees and new hires experience by arranging their own household goods moves?

Transferees and new hires that arrange their own household goods moves face several challenges. They may need to set aside a significant amount of time to research qualified transportation options. Once they complete this research, they must obtain estimates for their move. While the Federal Motor Carrier Safety Administration has a number of excellent resources, tips, and guidelines to help people as they look into household goods moves, many employees have little time to spare doing the requisite amount of work to choose a reputable moving company. Additionally, while helpful checklists are useful to understand the basic processes, it may be challenging for an employee to fully understand and be able to compare the information and responses they receive from several moving companies. In some cases, employees may be inadvertently exposed to less than professional services by disreputable moving companies.

How can your RMC help with household goods moves?

Employers should work with a qualified RMC that can provide guidance and assistance for household goods moves. Transferees and new hires should be able to focus on their new position. Also, they should take care of their family and professional responsibilities. A qualified RMC should obtain multiple bids for household goods moves, to ensure best pricing. Also, RMCs should have programs in place to ensure they meet service levels and suppliers meet specific performance criteria.

Global Mobility Solutions’ team of global relocation experts, in a major corporate initiative led by Ann Knapp, Director of Transportation Services, created Curbside Manner™, which is the standard of quality that all GMS Transportation Partners are measured against. Curbside Manner™ requires transportation partners to always treat each customer with the utmost fairness and respect throughout their relocation process. Also, every member of the transportation team must treat each move with the highest level of professionalism, decorum, and service.

What should employers do?

Employers should ensure that transferees and new hires have access to a qualified RMC. The RMC can obtain multiple transportation estimates and arrange household goods moves. They can ensure the highest level of professional courtesy and performance. The RMC will manage household goods moves, so the employee can focus on their new responsibilities.

Conclusion

Global Mobility Solutions’ team of global relocation experts helps thousands of our clients with household goods moves for transferees and new hires. As a result, we can help your company understand how to utilize the full range of Pre-Decision Services, including moving cost estimates, to help ensure successful relocations. Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online or give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary relocation policy review

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