According to one study, nearly half of Canadians have no plans of downsizing their home. Meanwhile, 34% intend to do it eventually while 18% already have. Downsizing is usually considered after retirement. Or, in times like these, when things are tough financially. The idea of getting a large lump sum will appeal to anyone, even at the sacrifice of their longtime sanctuary — or their childhood home. What is Downsizing and Why Do People Do It? Downsizing most commonly refers to purchasing a smaller home after selling a large one. Financial reasons for downsizing are to cut down on the mortgage or to get rid of it and other debt totally. You might also just want to put the money towards retirement. Or perhaps your monthly bills needn’t be as high because of your large home. Persons also undergo physical downsizing because their house no longer suits their lifestyle or family arrangement. New empty nesters or persons who simply have gotten tired of maintenance might also want to downsize. Maybe it’s no longer safe for you to go up or down your stairs due to old age or health issues, or you want to be closer to family and friends. 1. Understand the Costs of Downsizing Downsizing has a lot of benefits, but there are also quite a few setbacks you need to look out for. Luckily, only 9% of homeowners regret downsizing, so once you’re aware, you should be among the majority who don’t. Anticipate the hidden financial costs of downsizing: Real Estate fees Land transfer taxes Condo fees (if applicable) Administration fees Home appraisal Legal fees Moving expenses Furnishing and upgrades for new home Expect emotional costs to downsizing Most likely, moving to a smaller home will mean that you’ll have to part with some of your belongings as they might no longer fit your new living space. The decision of what to keep and what to throw out is often challenging. Of course, if you’re able, you could look into storage unit rentals so you won’t have to give up anything. Or, at least, you won’t have to give up those things that matter the most. However, if you’re downsizing from a home you’ve lived in for a long time, there’s simply no way to get around the loss of memories that were made there. All the life events that took place will now only be in pictures. Understand All the Practical Costs Downsizing might also mean sacrificing a good neighbourhood. Or, at least, one you’ve come to know and love. You’ll no longer enjoy your favourite swimming park or see familiar faces. If you end up moving to a more rural area — which is common for cheaper homes — you also won’t have easy access to cinemas, museums, and amenities you would normally frequent. 2. Get the Most Out of Your Sale If you understand the costs of downsizing and still want to push through, here’s how you can come out on the winning side of the sale: Know that staging your home is not always required. House or condominium staging is typically a good investment, but if you’re looking to save about $4,000, this might be the area to do so. Adopt the buyer’s perspective. Before putting your home up for sale, look at it objectively and be blunt about things a potential buyer might not like. Additionally, make the necessary cosmetic upgrades, changes, and repairs so you don’t lose a good sale. Sell at the right time — and at the right price. If you have a swimming pool, summer might be the ideal time to list your property initially. In certain locations, each city has a “best time” to sell. Research and plan to suit your needs. When you do finally decide to list, be reasonable, otherwise, your house may go stale and end up with a heavily diminished value. Get the right people to do the job. There are many real estate agents and companies out there, but not all of them are the right fit for you. Stack up your options for agents, advisors, maintenance managers, insurance brokers, and tax advisors as needed. Don’t settle. It might take some time to get a sale for the price you want. If this happens, don’t automatically agree when your estate agent suggests you markdown your home. Decide if you want to change your agent, or consider other options. 3. Keep Your Downsizing Options Open While selling your home will offer a lump sum all at once, it’s important to keep in mind the costs mentioned above. You might want to entertain the idea of renting your home instead. By converting your home to an investment property, you could enjoy potential savings of around 30% or more. Costs like new furnishings and moving to a new home can be avoided, but they’re more controllable than, say, agent fees (especially if you choose the right company). A second alternative might be to abandon downsizing altogether and upsize instead. Your local bank might offer a reverse mortgage option suitable for your needs. There are positives and negatives to this choice, however, so make sure you look into it with great care. Conclusion Whether you’re downsizing, upsizing, or staying right where you are, it’s essential to understand the key elements to a move and other forms of estate planning. Relocate Stress Free is here to help you have a smoother ride for all of it. Reach out to us for your next move, and know that you’re in the hands of trusted, experienced professionals.
How Mental Health Improves from a New Year’s Move
New Year, new house? If you’re moving at the start of the year, you don’t want to be bogged down with any burdensome tasks. Rather, a sense of relief should be the result of your latest move. In addition to getting the right professionals to help you, moving is a plus for your mental health for a number of reasons. You not only get a fresh start, but you also get a cleaner environment. Out With The Old… Typically, a move leads you to a rejuvenated home that you’re not going to want to fill with old, unused possessions acquired over the years. You’ll probably want to put run down furniture and unused valuables into storage. Another option is to donate these items. Giving back for the new year, combined with a new, cleaner space, eases the mind. A New Chapter Awaits Whether or not anything else in your life changes, moving closes out a chapter in your life and begins a new one. In many ways, you’re now able to leave behind any negativity, reevaluate your life, and start over. Save Some Money In making a new beginning, you can organize things so that you have more money after the big move. Aside from a profitable house sale, you might also opt to downsize your home. A smaller home is not just cheaper, it’s also a plus as it puts you in closer contact with your companions. You’re also obliged to make wiser purchase decisions as there’s less space to put it. Get New Neighbors Your old neighborhood and the people that came with it might be a legit factor in your decision to move. Either way, you’re going to have new neighbors and possibly new friends when you relocate. You can’t know in advance who you’ll click with, but meaningful connections are among the top ways to improve mental health. Further, you get a chance to be a better you — if possible — in your new circle. Circling Back If you haven’t moved just yet, there are also things you can do to mentally prepare. Now that you know it’s blue skies ahead, there’s no reason to be afraid, but there are always ways to be more ready. First off, don’t disregard your routine with old friends. Amid the organization and packing, set time aside for lunch dates. Your kids’ routines should also remain in place so they don’t stress about leaving their home and friends. Consider Going Green The green bandwagon is not just a trend, and if you’re on it, you know how good it feels to make a positive impact on the environment. Fortunately, there are a lot of ways to do this while moving. Make use of old newspapers, clothing, and linens for wrapping fragile and non-fragile items. Your home also probably offers a range of tote bags and containers you can use. Take advantage of a moving company that uses reusable boxes — such as Relocate Stress Free — or rent plastic containers. The professionals can definitely help here. Mind Your Physical Health Of course, moving involves a lot of physical tasks as well. Be prepared for the job by keeping up with your exercise routine if you have one. If you don’t yet, that’s fine (just make a new year’s resolution for it!). Regardless of your physical state, be sure to use the proper equipment like gloves with grips, wrist and knee braces, and well-cushioned shoes. Pretend as if you’re going to the gym. In line with that, you’re going to want to eat and drink as needed ahead of and during your moving task. Stay hydrated with water, rather than caffeine and sugar which do the opposite. Finally, pace yourself if possible. We know you’ve got a schedule to stick to, but try and remain steady to avoid injury and reduce stress. Above all, make sure you get sufficient sleep for both your physical and mental health.