Downsizing Your Home
Everything you need to know about making the decision to downsize
Written By: Mariko Baerg, REALTOR of Bridgewell Real Estate Group
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Downsizing Your Home: How to Prepare Yourself for Downsizing
With the real estate market absolutely booming in Greater Vancouver, we have a lot of clients that are “thinking” about selling and bank out. The money pots are in the single family detached homes, and now they’re considering downsizing (aka going from a 2500 sqft. home to a 950 sqft. condo). With that being said, here’s our take on whether or not you should downsize, and some extra advice on how to make the move easier if that’s the route you decide to go. Get ready for “Downsizing 101.”
To downsize or not to downsize…. That is the question.
Brief thoughts of whether or not you should You Downsize
How much space do you actually use?
If you’ve tied up a ton of money in your home but are only really using it as a storage space for your things, then there may be better uses for your money. When was the last time you used your guest room? When was the last time you used that third bathroom? Are you getting sick of cleaning spaces that carry dust because no one is using them? Go through your home, figure out what space has actually been used in the last 90 days, and go from there.
How could you benefit by selling your home – what else could you spend the extra cash on?
Maybe you’ve thought of travelling for 6 months of the year – or even taking multiple short vacations but all over the world. Maybe you’ve thought about retiring early. Whatever it is, if you sold your million dollar home and moved in to a $400,000 condo, what could you do with that extra money? Think about what kind of doors that would open for you, and if you’d prefer the opportunity over the extra space. If you don’t use the majority of your space, I’d give it a good hard thought.
Are you getting sick of stairs?
As we get older, stairs tend not to be our friend. If this is the case, or you’re thinking about downsizing in to your final home, then avoid townhouses and stick with a condo with an elevator or on the ground floor. Your knees (and your pockets) will thank you.
Are you getting sick of raking the leaves, mowing the lawn, and pruning the trees?
Yes, condos and townhomes have maintenance fees – they’re paid on the first of every month. While you do have to pay for your maintenance, your time is also worth money. Or maybe your body just can’t take the heavy maintenance of a big yard on detached home. Strata will clean the gutters, trim your garden, prune the trees, and maintain the furnace. Condo fees are also predictable, which is nice when you’re on a fixed income and/or retired. The majority of issues that occur in a strata type property are also dealt with by the strata council! Pretty awesome deal, if I do say so myself.
How often do you have company sleeping over?
A lot of our clients consider downsizing because their kids have grown up, moved out, and started their own families. Moving in to a 1 bedroom 1 bathroom condo is a big stretch from a large detached home with 5 bedrooms and 4 bathrooms, and that’s not necessarily what I’m suggesting, but rather a move to a 2 bed/2bath condo (for example) where you have room for each other, and a spare room for any one else. The majority of condo buildings also have a guest room that can be rented out for cheaper than any hotel (usually $25-60 a night), as well as an amenity room where you can host big gatherings for all of your extended family and friends.
Does your neighbourhood and your neighbours no longer fit your wants and needs?
When I first moved in to my neighbourhood it was much different than it is now. It’s noisier, busier, and all of my friends have moved away. While I still love where I live, it has come across my mind that maybe my neighbourhood just doesn’t fit me anymore. We see this a lot when we’re talking to our clients about why they want to move, and while moving to a different neighbourhood can be scary, it is also one of the most exciting parts about moving. You get to choose if you want to be in a quiet building with age restrictions (i.e 55+), or right in the heart of downtown and close to cafes, parks, and restaurants. You choose your lifestyle – what kind of life do you want to live?
Where do you see yourself in 5 years?
Anytime you’re buying a new property you have to think about the long term. Most people when they’re downsizing are planning on living in the property for at least 10 years, often times more. Again, it goes back to things like the stairs – think about how your health and body will be functioning then. Think about if you’ll be retired. Think about if you’ll be travelling the majority of the year. So take a look at your lifestyle now, assess it over the time that you think you’ll be living in that place, and base your decision on your location and style of home off of that.
Extra advice on how to actually downsize
When in doubt, throw it out
If you can’t remember the last time you’ve read that Cosmopolitan magazine from 1999… it’s probably 1999. A great way to be comfortable in a smaller space is to throw out, donate, or sell the things that you just don’t use anymore. Separate the important paperwork from the un-important paperwork, throw out those expired coupons, and recycle your old magazines, broken cellphones, and old laptops. If you’re not sure if you should throw it out or not, the answer is probably yes. By getting rid of all the clutter, it’ll make the stuff that you do keep just that much more special.
Donate!
The Salvation Army and Value Village will handle your donations. They’ll sell it at a discounted price at their stores, and then part of the proceeds will go to the organizations and people who need the money the most. If you’re not using something, the chances are that someone in need will find it useful and appreciate it. If you have extra appliances, lights, warm clothing, blankets, and/or furniture that you won’t be taking to your new place, then donating is a great way to earn some awesome karma and help someone in need.
Paperwork
This is a great time to organize and find a special spot for all of your tax paperwork like T4’s, notice of assessments, and other income documents. You may need to access up to 7 years of paperwork, so make sure you bring all of that with you. Discard of other non-important paperwork, like expired coupons, used scrap paper, and your notes from university. (that you probably haven’t looked at since university…) Again, it’s all about separating the un-important from the important, and doing some long overdue cleaning.
Storage
If you’re really having a hard time parting with some things, or maybe would like to save some furniture for when your kids buy their own place then a storage locker is a great alternative to stuffing it in your new place when you don’t have a lot of room. Just make sure that you really eliminate the necessary and the unnecessary, and aren’t just using your storage as an extra hoarding unit.
Garage sales are a god-send
All hail the mighty garage sale! Maybe your neighbour has been eyeing that leather sofa in your living room for quite some time, and when you downsize it’s just not going to fit in your new place. Organize all of the things you’re planning on giving away, and hold a garage sale on a Saturday and Sunday. Invite all your neighbours, your friends, your family, and maybe even think of putting up an ad on Facebook, Craigslist, or in the paper. Odds are, you’ll make a decent chunk of change that can either go to helping out with closing costs or saving for a rainy day.
Social media is an awesome way to get rid of “stuff”
Social media has completely changed the way we operate and live our lives. Think of running an ad on facebook targeted to the demographic of whoever would want what you’re selling. Advertise your garage sale. Post an open invite to all of your friends, colleagues, and family that you’re giving away some of your treasures. It’ll be a great way to get traction and avoid the dump, storage locker fees, or excessive hoarding.
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Making the decision to downsize isn’t always the easiest one, but we hope that this downsizing 101 guide helped you feel a little bit more comfortable with your decision. Bridgewell has helped a number of people through the move and transition in the past, and we’d be happy to talk to you about your options so that you can make an informed decision that is best for you and your family. Whether you’re just thinking about it or motivated and ready to go – give us a call at 604-765-0376 or email us at [email protected]. We also text – 604-319-0200.
