How To Approach Downsizing

by Darrin DeRoches April 18 - 24, 2013

Downsizing can be a hard thing to do but if you approach it the right way it can be the right answer. People have to purchase smaller homes for a variety of reason but the main two are divorce and retirement. Divorce usually means a split in income and the ability to maintain the matrimonial home can be difficult. The two parties need to buy new homes that they can afford and keep their children in the same school and also fit all their belongings etc. The reality that the house will be smaller and lack all the bells and whistles is usually hard to come to terms with. A recent client of mine is going from a $500,000 home into a $250,000 home but wants a $300,000 dollar home. The problem is the size and location of the new property and the reality is that their income will only support a smaller home. The process can be very emotional and sometimes it is hard to come to the reality of their future. They need to be honest with themselves so they do not become house poor. My advice to them is to be brutally honest and buy an affordable property and if in time their financial standing improves, their children grow older and move out then they can reconsider a larger property in two or three years. The most important thing is to own a home and be able to afford it.     The retirement home is becoming more and more needed in today’s market. The population is aging and they require different things from their home today than they did 10 years ago. Most people require a bungalow where everything is on one floor. Laundry, bathrooms, bedrooms all need to be on the same level and their family home usually becomes too large and hard to handle. They have options and can even consider “retirement communities” but the majority of clients wants to maintain their independence and do not want to pay condo fees. I have found the best answer is one floor freehold townhouses that are mixed in communities with all different age groups. These properties are not as easy to find but they are the best option since they still have the feel of your own home but with the comforts of a community.  The grass cutting, snow removal and the ability to live independent and safely on one level is what you want and to be able to sit on your porch and watch the world go by is what you may need. This way you are able to still be involved without be separated from your community.     When downsizing, one must really look at what they need today and in the near future and figure out what works best for them emotionally and financially. Get rid of all the clutter, simplify and enjoy the next chapter of your life while staying in your community. It may be hard to find the right property but by using the right broker you can certainly improve your chances. V         Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.