Secrets of Aging in Place

The conversation about downsizing is often one that people want to put off or avoid altogether. That’s an understandable reaction to such a sensitive and highly personal topic. However, early discussions with your family and loved ones can lead to a much more fulfilling and positive journey than you may realize. 

With a plan in place that suits your lifestyle and opens the door to new opportunities, the thought of downsizing can take on a whole new meaning. You can create a situation where you have all the support you need, with the privacy and independence you want. Keeping your finances, health, and goals in mind will help guide you to a more enjoyable and stress-free downsizing experience.

Create a Plan That Aligns With Your Goals

Money can be another sensitive subject for many people. However, many of your goals will depend on your financial resources. For many retirees, the bulk of their net worth is tied up in their family home. Selling may be the most common option to help fund your retirement dreams, but you have other paths. A local real estate agent or financial advisor can advise you on how to make the best use of the equity in your home, regardless of whether or not you decide to sell.

The next step is to ask yourself what kind of lifestyle you want to achieve during your retirement. Do you want to live independently, with the freedom to travel whenever you wish? Or would you prefer to have your family nearby to support and help you as needed?

The Toronto real estate market moves fast, and it can be challenging for anyone. The following posts will help you navigate your transaction during any conditions:

• Advice for Seniors Selling Their Family Home
• Downsizing In A Shifting Market: Is It A Good Idea?
• How Seniors Can Navigate an Ever-Changing Real Estate Market

Now that your plan is starting to take shape, let’s take a look at some of the traditional downsizing options.

Buy a Smaller Home or Condo

If you love your home but are simply finding it more and more difficult and expensive to maintain, a smaller place may be the best solution. It allows you to continue to live independently, with the same privacy and conveniences you enjoyed in your family home. The only difference is that you will spend less time worrying about the expense and hassle of maintaining a large property and more time enjoying your life. With the help of a real estate agent, you may even find the perfect place in the same neighbourhood that you know and love!

Rent an Apartment

Selling your home and buying a small condo or townhouse may be the more traditional route. It allows you to continue building equity in your new home as real estate values rise. However, many retirees like the idea of selling their house and then renting an apartment. It’s true that you will no longer build your equity. But for some, the cash earned from selling the family home allows for a carefree lifestyle you couldn’t imagine otherwise. 

Become a Snowbird

If you’ve always loved to travel, your retirement is the perfect time to do it. With your family grown and no work obligations, you’re free to explore the world at your leisure. Selling an existing home in the current market is an excellent way to fund your globe-trotting adventures!

Does one of the above traditional routes sound like the plan for you? Then check out our Practical Guide to Downsizing right here.

An Alternative to Downsizing

What if, after examining all your options, you just can’t stand the thought of leaving your family home? This happens more often than you realize, and aging in place can be a viable option.

Staying in your home may mean extensive remodelling is required to accommodate you if health issues arise in your later years. You may want to have everything all on one level so you don’t have to trek up and down stairs to get from one room to another. 

If the layout allows it, building a ground-level secondary suite can be an excellent option for your lifestyle and in terms of adding value to your home. You can continue to enjoy life on your terms without ever truly being alone.

Benefits of Aging in Place

One of the best perks about aging in place is not having to say “goodbye” to the home that holds so many precious memories. You can stay close to your loved ones, and you don’t have to start over in a new neighbourhood or city. Keeping the home in your family also offers numerous financial benefits, including:

• Growing your equity as your existing home appreciates in value. If you ever need access to funds, you can apply for a home equity loan or even a reverse mortgage while retaining ownership.
• You can bequeath your home to your children or grandchildren to grow generational wealth.
• Adding a secondary suite can increase the resale value of your home if you ever do decide to sell it. 

Did you know that some real estate agents have specialized training that helps them meet the needs of seniors who are buying or selling real estate? It’s called an SRES® designation, and you can find out all about it right here.

Implement Your Plan

As always, the more time you leave yourself, the less stressful the downsizing process will be. Planning ahead allows you to factor in your current lifestyle and to make a backup strategy if your situation changes. However, the best thing you can do is to know all the available resources and never be afraid to ask for help. By involving your loved ones in the process, you set yourself up for a joyful transition where you can look forward to the exciting future ahead of you.

At Thompson Sells, we specialize in helping seniors buy or sell real estate while making the transition as stress-free as possible. Do you want to know more about our services? Reach out to us today at contact@thompsonsells.com or call 416-450-5900, and we are happy to answer your questions.