Time To Downsize
Is it time to downsize? You’ve raised the kids, you’ve worked hard, you’ve earned your stripes and you’re sitting on a pile of equity in the family home you bought 30 odd years ago for an absolute fortune (Footnote 1). One of you has taken early retirement but can work on a contract basis to keep a bit of dough coming in. The kids have finally gone and are starting their own families. You spent a wonderful summer at the cottage. You’re talking about a trip to Europe or even New Zealand. Life is good, no, life is great… and then it dumps a foot of snow. The pavement, the driveway, the parking spot all need to be cleared. You look at the snow shovel and realize that you never want to shovel snow again. Ever.
- Should I Stay In My Home Or Downsize?
- Are There Drawbacks To Downsizing From A House To A Condo?
- Downsizing Your House To Save Money
- Put Your Money To Work
Downsizing Your Possessions
It really should be called “Right Sizing” or “Wise Sizing”. You don’t need the same amount of space. Empty rooms gather “Stuff”. Stuff is like a virus that multiplies unless it is stopped. Kids are like magnets for “Stuff”. If the kids are gone why is all their stuff still there? People get used to their living space. Living without stuff is a discipline more important than watching calories. The best way to get rid of “Stuff” is to not give it space to grow. Your house is worth a fortune, tap into that wealth by retiring to a smaller place.
Should I Stay In My Home Or Downsize?
The Toronto market has made paper millionaires of more or less an entire generation. There is no sign of it slowing down. What we can say for sure is that it is not going to in crease by the same this year. This is a good year to cash out. The greatest regret that Baby Boomers have is not having sold their house and bought a condo years earlier. Enjoy life.
Tips For Downsizing Your Home In Toronto
Create a Financial Plan
Talk to your financial advisor or accountant to determine your budget
Imagine The Life You Want
When it’s time to downsize you need to have a clear idea of the life that you want. Imagine your lifestyle, set goals and achieve your dream.
Know What’s Important
You know what’s important for you. Whether it’s travel or staying close to the kids and grandkids everyone has an idea of what they want. Make sure it fits the plan.
Research Condo Living In Toronto
Living in a condominium in Toronto is not for everybody. It takes some getting used to. There can be pet restrictions for example. Monthly expenses and maintenance fees still have to be paid.
Are There Drawbacks To Downsizing From A House To A Condo?
Like all major lifestyle decisions there are pros and cons. The equity that you’ve built up in the house in Toronto is a primary factor. If you have enough equity your choices are much wider. There are major tax benefits dealing with the sale of a primary residence but these can be tempered with the current fees and taxes that are associated with Toronto Real Estate. Talking to your trusted Real Estate Professional is always a wise move.
Is Downsizing In Toronto Easy?
Downsizing is not easy. It is a major life transition. For many of our clients who have made the move it is akin to a bereavement. It is natural to become very attached to your home. However, every single one of our clients made the adjustment successfully because they made the decision early.
Do I Need To Buy Or Can I Rent?
Renting in Toronto can be a viable option. Remember though, for every year that you’re out of the market it’s a year of equity that you lose. Currently in Toronto rental space is at a premium. If you’re thinking of relocating outside of the city it’s a different story. It often makes sense to rent for a year to get the feel of a place.
Downsizing Your House To Save Money
We recommend talking to your financial advisor and a Real Estate Specialist. Check our article about how to find the best real estate agent for you in Toronto. Talk to other friends and couples who have made the transition. Talk to the kids and the family about your plans. It’s important to be surrounded by your loved ones (not surrounded by stuff) and people with top notch, expert advice.
Put Your Money To Work
Make your money work for you, not the opposite.
1. Remember paying a fortune for your home all those years ago? I guarantee you it’s worth a ton more today. It’s probably the greatest investment decision you made.
2. How to find a great Toronto Realtor who will work for you.