Ultimate Condo Downsizing Guide

Do you have way too much space and need to move to a smaller place? Or is the maintenance getting to be too much and you dream of only having a small balcony to tend to? Perhaps you want to free up some cash to spend during retirement. Whatever your reason for downsizing your home, our ultimate downsizing guide will tell you everything you need to know.

How to Decide If It’s Time to Downsize

Should you downsize your home? Are you downsizing for retirement or personal reasons? Perhaps your nest is feeling a little too empty, but you can’t imagine calling anywhere else home. If you’re dealing with these conflicting feelings, you might want to start asking yourself, “When is the right time to downsize?”

The honest answer is, of course, it depends.

Some of our clients, who can’t imagine ever saying goodbye to their family home, end up acknowledging later when they do downsize that they wish they’d done it sooner. Others jump into the downsizing process too early and realize fast that their smaller space doesn’t fit their lifestyle at all. Then there are clients downsizing to a smaller home instead of a condo, and within five years wish they’d opted for a turn-key condo.

It all comes down to knowing yourself. And that can be harder than you think! When you’re beginning to consider downsizing, make sure to self-reflect, and really dig down to uncover what makes sense for you and your lifestyle.

Questions to Answer to Help You Decide

Here are a few good questions to answer if you’re starting to think about downsizing, and also if you’re trying to decide between downsizing to a smaller home and a condo:

• Do I use the majority of my house on a weekly basis?
• Am I happy dedicating my weekends to gardening and other maintenance activities?
• Am I spending money to have others help maintain my property?
• Would I live my life differently if I had funds freed up from the sale of my house?
• Would amenities like a gym, pool, rooftop for entertaining, or guest suite enrich my life?
• Are stairs posing me or my partner any issues?
• Would having a turn-key home encourage me to travel more?

Depending on your answers to those questions, downsizing might be a real avenue to consider. On top of that, condos are a great solution for those who not only want to eliminate unused space but wish to live in a maintenance-free environment with amenities at their fingertips.

Deciding How Much You Can Afford When Downsizing

Once you’ve decided to downsize, the next thing to consider is how much you can afford when downsizing. It’s important to decide this before you start falling in love with your next dream home.

While selling a larger home and purchasing a smaller one can free up some funds, that money won’t last forever, and you need to choose your new property wisely. Here are some of the steps to downsizing your home without breaking the bank.

1. Consider Selling First

One of the biggest factors that will decide how much you can afford is how much you sell your existing home for. If possible, try to sell your home before downsizing first so you’re not guessing how much equity you can afford to put in.

2. Don’t Rely On Your Mortgage Provider

Your mortgage provider is going to pre-approve you for a certain mortgage amount. This, combined with your down payment, will decide the home price you can afford. However, this is the maximum amount that you can spend and is based on generic factors. It’s doesn’t take into account factors such as your desired lifestyle, which is a personal choice that only you can define.

3. Factor in All Fixed Expenses

Of course, your mortgage payment won’t be your only monthly expense. Be sure to calculate all other fixed expenses, including property taxes, condo maintenance fees, utilities, insurance, car payments, and anything else you absolutely have to pay on a monthly or annual basis. Will you need help with house cleaning or yard maintenance? Factor in those costs too. For a more accurate picture, you should try to estimate the cost of monthly necessities like groceries and gas as well.

4. Overestimate Renovation Costs

If you’re moving to a home that needs immediate renovations, you’ll obviously need to make sure you have enough money to pay for them. It’s important that you’re realistic about these costs. What’s more, you should overestimate them (by at least 20%) as you never know what could come up.

5. Consider Your Lifestyle Needs

Bills and groceries aren’t the only thing you need money for. If your lifestyle involves travel, fine dining, or upgrading luxury cars every couple of years, you should put these into the equation too. Even ordering takeout every couple of weeks can impact how much you can afford to spend on a home.

6. Don’t Forget the Emergency Fund!

It’s easy to forget to underestimate the importance of having some extra cash for unexpected repairs or maintenance. This is especially true if you’re going to be moving to an older property. Be sure not to stretch yourself too much and keep some money in the bank just in case.

Things to Consider When Searching for Your New Home

Once you know how much you can afford, so begins the quest to find your perfect property.

Here are some of the top factors you need to take into consideration.

1. Choose Your New Community Carefully

While it’s tempting to be swayed heavily by the aesthetics of a charming bungalow or the amenities of a condo building, it’s crucial that you think about your neighbourhood first. This is the same advice we give anyone looking to purchase any kind of home.

Think carefully about which community you want to live in. Do you want to stay close to the area in which you raised your family? Or would you like to explore the convenience of downtown living? Do you want to be close to friends, your place or work, or your church?

Perhaps you want to be in close proximity to places where you can enjoy your favourite pastimes. Maybe you’d like to live near a golf club or marina, or somewhere that’s an easy drive to the cottage. If you’re thinking about a condo, these are no longer limited to the confines of large cities, so you’ll be surprised what you can find in the surrounding areas.

2. Get Your Priorities Sorted

Once you’ve pinpointed your neighbourhood, it’s time to think about what you want from your actual house or condo. You might not be able to get everything on your list, so make sure your priorities are in order. By sorting must-haves from nice-to-haves, you’ll be much better equipped to make a quick decision should the need arise.

Ask yourself what you really want from your new home. Do you want a turn-key property or would you like something you can add your own touches to? If you’re buying a condo, would you rather a smaller boutique building or a high rise with spectacular views of the city or waterfront? What about amenities within the building? Although lots of amenities can sound amazing, they sometimes contribute to higher maintenance fees, so think about which ones you’ll actually use.

3. Downsizing to a Condo

If you do opt for a condo, it’s important to get a good feel for the building. Don’t be afraid to go and get a sense of the condo you’re considering, before putting in an offer. Visit the building at different times of day and go into the areas you think you’d use (if accessible). Ride the elevator and ask owners what they like about living there. Talk to the concierge to find out how approachable and helpful they are. After all, you’ll likely be interacting with them on a daily basis.

And it’s not just indoor spaces you’ll want to check out. Outside might be just as important to you. This applies whether you’re purchasing a home or a condo. If there are green spaces or parks, go sit and see if they are areas you’ll enjoy using. If you’re a commuter, you might want to try out your route to work to see how long it will take and how busy it will be. Expecting lots of visitors? Check about street or condo parking rules before you make an offer!

4. Consider Renting First

Not everyone is prepared for the changes that downsizing brings to their lifestyle. One way to truly “try before you buy” is to rent first. For condo buyers, this will give you a true sense of the building that daytime visits can’t. For example, things as simple as noisy neighbours or strict rules and regulations can be enough to make you rethink your choice.

If you’re looking to buy a smaller house, renting one first could help you decide if the neighbourhood is right for you or if you might actually prefer a condo. Although renting might seem like a waste of money, it’s better than having to shell out two sets of closing and moving costs if you’re unhappy with your first choice.

Why Decluttering is Good For You

Decluttering is one of the biggest hurdles for many downsizers. It might not look like you have a lot of stuff when you’re in a large home. But try cramming it all into a condo and you might find yourself with no space to move.

When downsizing, many of our clients underestimate the work involved in purging their family home. It’s common to feel overwhelmed with the task and put it off until the last minute. Of course, this only adds to the stress of deciding which items to part with. Here are some of our top tips to help you downsize and declutter.

1. Start Early

First and foremost, it’s a bad idea to wait until you’re ready to make the big move before you start decluttering. Most of our clients have items that they know they will not be taking to their new home way in advance of selecting their new home.

For example, you may have large items of furniture you rarely use and know you can’t take along. If you start early enough, you can find them a good home with a friend or family member. Or if you want to sell items, you’ll have a better chance of getting a decent price for them if you’re proactive.

Storing boxes of your kids’ childhood belongings? These probably can’t move with you. It’s better to identify items that can’t be stored as early as possible so you can let your kids decide if they want to keep them themselves.

In general, decluttering will likely take more time than you anticipate, so it’s best to start as early as possible. Ideally, you should start before you sell your existing home. You’ll be better prepared for your move, plus your house will show better and be easier to sell.

2. Declutter Room-by-Room

Once you get started, it might be tempting to empty out all the drawers and closets in every room in the house. But this is likely to cause an incredible mess when downsizing and decluttering.

On the other hand, there’s a great satisfaction to be had in seeing how clean and fresh things look without the clutter. If you focus on one room at a time, you’ll see progress more quickly and feel motivated to keep going.

3. Start With the Least Used Rooms

In a similar vein, if you start with the master bedroom or living room, you’re more likely to feel the impact of the upheaval. Instead, start with the least used rooms first. These will be easier to manage and give you a sense of achievement much more quickly. A little-used den, guest room, or rec room could be a great place to start.

4. Use the 5-Year Rule

It can be very difficult to part with belongings, even those that don’t hold a significant amount of sentimental value. Of course, there will be some things that you’ll want to keep forever, but for others, a five-year rule is a handy tool.

Basically, if you haven’t used an item for five years or more, it may be time to think about whether you will be taking it to your new home. This is especially true when it comes to things like clothing and accessories.

5. Label Everything!

When you’re going to the trouble of decluttering, it’s important to be organized. This way, you can stay on top of what needs to go where and make sure nothing is accidentally thrown away or donated to charity — it happens way too often!

You can use simple labels like ‘sell,’ ‘donate,’ or ‘trash,’ and more specific ones for items you’re holding onto. Once your items are labelled, it will help with the next stage of the process. You might want to host a garage sale, post items for sale online, have family pick up belongings, or take a trip to the local charity shop.

Work With an Experienced Downsizing Realtor

Downsizing to a smaller home or condo is just as big a deal as purchasing a larger home. And if you’ve been in your existing home for a long time, you’ll likely find a lot has changed in the world of real estate. What’s more, if you opt for a condo and it’s the first time you’ve owned one, it will be unknown territory for you. Therefore, it’s even more important that you get the right help.

Choosing a realtor who has plenty of experience with homes and condos in the local area will ensure you get the best advice. They’ll be familiar with the various options so you get the property that’s right for you. They can also help you with the process of downsizing as they’ve been through it with many clients before.

Downsizing can be both exciting and liberating. However, it can also spell a stressful time if you’re not prepared. Thankfully, using this guide, you’ll be well on your way to downsizing bliss!

Image credit: Artazum via shutterstock.com.