In Part One of our Downsizing the Family Home Series, we detailed the key expenses to consider before selling your family home.
Now that you’ve decided that you need to move to a smaller home, what type of dwelling do you move into? Here are four options for consideration, whether to rent or own, and the differences in location:
Style of Housing
1. Condo or Townhome
2. Bungalow or Low-Maintenance Property
3. Rental Condo/Apartment
4. Senior Living
Additional Considerations
Rent or Own?
Location Options
- Condo or Townhome
If you prefer to stay within the city you know, or within the core of another municipality, a condo is a great option. The purchase price will likely be lower than that of your family home, as will the costs of utilities and property taxes.
While maintenance fees are a new cost, you won’t have to worry about your gardening, who’s going to cut your grass or shovel your driveway. You may also have access to incredible views, a fitness centre, a pool, and increased social activities. The drawback is that you will lose some privacy and must abide by the condo building rules.
- Bungalow or Low Maintenance Property
If you still enjoy gardening and taking care of the property, and it’s not a burden for you, a smaller home, such as a bungalow or townhome, might be the best choice. The upkeep likely won’t be as demanding, either.
Depending on the location, size, and condition of the smaller home, the purchase price will vary and may not be significantly lower than the cost of your existing home. This may also apply to property taxes, but you won’t have maintenance fees if you’re caring for the upkeep yourself. Utilities should cost less, but it depends on the municipality.
- Rental Condo/Apartment
You may not want to buy another property to gain more flexibility in your lifestyle, so what about renting? If you’re unsure about what you want to do in the future, whether travelling, moving to another province or country, or making another lifestyle change, renting might be a good short-term choice.
Renting a condo or an apartment reduces your commitment and responsibility and allows you to decide what is the best fit for you. You might even decide that renting is the best choice for the short, medium, or long term.
- Senior Living
Another option for downsizing the family home is to reduce your level of responsibility drastically by choosing a senior residence or joining a senior community.
Several purchase levels are available, determining your accommodations, meals, available amenities, and customized degree of care. These residences were specifically designed for seniors, so as your needs change, your level of care and responsibilities can change.
These accommodations tend to be expensive, but they do offer additional amenities, including improved access to social activities with your peers, which are often organized, and housekeeping services.
Rent or Own?
Owning the property after downsizing your family home allows more flexibility and control over daily decisions and lifestyle. You’ll be free to change the property, bring a pet into the household, and decorate it as you please.
Owning also builds equity, provides a tax advantage, offers potential rental income from spare rooms, and ensures cost stability.
Renting typically reduces your responsibilities, financially and physically, allows you increased flexibility to move when needed, protects you from real estate market changes, and doesn’t require a significant commitment of capital.
It all depends on what you’re looking for and if you have plans after the initial downsizing from the family home.
Location
The location of your new home is also a crucial factor to consider, as it will significantly impact the pace of your lifestyle.
Suburbs/Rural
Living in the suburbs/rural offers a quieter, more relaxed pace of life, more green space, and a sense of community. It can be ideal if you’re seeking a break from the hustle of city life. However, there will likely be limited public transit options, fewer walkable amenities, and an increased reliance on driving for errands and social activities. The more rural you are, generally the less access to timely health care as well.
City/Downtown
Downsizing to a home in the city offers convenient access to a wide range of entertainment, dining, and cultural attractions, usually just a short walk, bike ride, or transit trip away. However, driving and parking can be stressful, especially in busy downtown areas, and noise and congestion are also important factors to consider.
We advise that when it comes to picking a location, clients should consider a blend of proximity to family and friends as well as healthcare teams, accessibility of daily activities and chores, sense of community, timing of adjustment and how your home fits into your overall financial plan. It’s important to consider how all these factors may impact you now and in the foreseeable future (ie. 3, 5, 10, 15 years down the road).
If you’re hesitant to leave your long-time home, that’s okay! In Part Three of the Downsizing the Family Home series, we’ll examine the emotional aspects of downsizing.
Are you ready to move to the next stage? Let’s chat. Send me an email (hillary@hillarylane.ca) or text/phone (416-882-4707).
