Here’s what you should consider before downsizing

Are you thinking about moving to a smaller home? If you’re ready to live in a space with less housework and less room to fill, the spring market can be a great time to downsize. Downsizing is often an exciting prospect for many people, and you deserve to make the most out of the experience! Before you start house hunting, though, there are some important factors to consider. Here’s what you should think about before you downsize.

Your space requirements

If you’re currently living in a space that is too large, it can be hard to determine how much space you truly need. For example, if you’re looking to leave the house where you raised your children, what square footage and bedroom number should you be targeting? Downsizing is a tricky balance between taking away unnecessary housing space, while also ensuring you have enough room to settle in.

It’s important to think about who will be living in your new home. Will it be just you, or are you moving with a partner, spouse, or children? The number of people often reflects the number of rooms you’re looking for. Now, you need to think about actual living space. This includes the number of floors, the yard size, and whether you require a spare bedroom or office space. You should also consider whether you plan to store all your belongings in the home, rent a storage unit, or sell items you don’t need before you move. It’s important to visit potential homes to get a sense of their size of the space before you put in an offer!

Your proximity to your needs

In your current area, you likely have a favourite grocery store, pharmacy, and restaurant that you visit. If you downsize and move to a new neighbourhood, will you have easy access to these amenities? It’s easy to take your local grocery store for granted until you move, and realize you now have to drive 20 minutes to reach the closest store. Part of a successful move is scoping out the amenities nearby, and determining how far you’re willing to travel to reach them. If you live in an urban area, this most likely won’t be an issue as you are always just a stone’s throw away from everything you need. However, if you’re moving further away from the city and entering a rural zone, it’s important to take this into consideration.

Whether you should rent or buy

If you’re downsizing, and particularly if you are retired, it’s worth considering whether you should rent or buy. Retirees often have less of a need to continue growing their equity in the market by buying, since the market is not new to them and they likely will not be making many more moves. On the other hand, some people prefer living in a home they fully own. The decision to rent or buy can be tricky, but there are a few factors that can help you. These include things like home maintenance, timeline, and savings. If you’re hoping to make a move to a place that is a smaller size and has fewer maintenance responsibilities, renting is a great option. Renting is also smart if you’re unsure how long you will be in your next home, and if you don’t have the savings to make up a down payment to purchase a new property. Conversely, if you want to make this move your last, and you’ve been saving up for it, buying becomes a more realistic option.

How to budget to buy and sell

Assuming you are choosing to sell your current home and buy your next one, it’s important to consider your budget. Many people use the sale of their current home to support their new purchase, so you must determine your home’s market value. You can have an appraisal performed to learn how your home might sell. You should then think about the costs of buying, including your down payment, closing costs, and monthly costs of owning. This will help you plan out your budget, and what you can afford to spend on a new home. You should contact a mortgage broker to help you create a proper budget for downsizing! We can review your financial situation, and how it fits into today’s market.

Are you a permanent empty nester?

Finally, downsizing is often the result of children moving out of the family home. It makes sense for many people to relocate at this point in their lives. But before you do, ask yourself if your house is going to be a permanently empty nest from now on. If you have kids who have moved out, but they might come back after they finish school, it might be a good idea to hang onto your current home for now. Things can feel very cramped if you downsize to a home and then end up with an extra, unexpected occupant. If you’re saying goodbye to the family house, make sure you won’t need any of those extra rooms later!

Downsizing is an exciting part of many people’s lives. It represents a change of pace and perhaps easier home maintenance responsibilities moving forward. However, just like with any other move, downsizing can feel like a difficult task. That’s why we recommend using a mortgage broker like us! We’re here to help you secure the mortgage product you deserve, and ensure you move through today’s market with ease.

If you have any questions about your mortgage, give us a call at Centum Home Lenders! You can reach us at 506-854-6847, or get in touch with us here.