Is Downsizing Worth the Effort?

For many Ottawa homeowners, downsizing sounds simple in theory: sell the larger family home, buy something smaller, free up some equity and enjoy a more manageable lifestyle.

But once you start looking at what smaller homes actually cost, the decision can become a little less straightforward then you may have originally thought.

We regularly speak with homeowners who have lived in the same house for 20, 30 or even 40 years or longer. Their mortgage may be paid off, they have built substantial equity and the house has served their family well. The question eventually becomes: Is Downsizing Worth the Effort?

The answer is often yes, but not necessarily for the reasons people expect.

Downsizing Doesn’t Always Mean Spending a Lot Less

One of the biggest surprises for homeowners considering downsizing in Ottawa is the price of the home they want to move into.

Someone selling a larger detached home in Orléans, Kanata or Nepean may assume moving into a bungalow, newer townhome or condo will result in a substantial difference in price.

Sometimes it does.

But desirable bungalows can command a premium because there is limited supply and strong demand from downsizers. Newer townhomes with modern layouts may also be relatively expensive, while condos in desirable locations can come with significant monthly fees.

That means the financial gap between your current home and your next one may not be as large as you initially expected.

And the purchase price is only part of the equation.

Want to get the best results possible from your home sale? Explore these blogs for more advice.

Consider the Full Cost of the Move

When homeowners ask us, “Should I downsize?”, we encourage them to look beyond what they will sell their current home for and what they expect to pay for the next property.

There are other costs to consider, including legal fees, land transfer tax, moving expenses and potentially renovations, new furniture or storage.

If you are moving into a condominium, you also need to factor monthly condo fees into your future budget. On the other hand, those fees may cover expenses you are already paying separately, such as exterior maintenance, landscaping or snow removal.

The best way to evaluate the move is to compare the complete financial picture rather than simply comparing two purchase prices.

The Biggest Benefits May Have Nothing to Do With Money

This is where the downsizing conversation becomes more interesting.

For many people, downsizing is less about maximizing the amount of money left over and more about improving their lifestyle.

A smaller home may mean less grass to cut, less snow to shovel and fewer rooms to clean. Moving into a bungalow or condo can eliminate stairs. You may also be able to move closer to family, shopping, restaurants, recreation or medical services.

And for homeowners who enjoy travelling or spending winters somewhere warmer, having a lower maintenance property can provide considerably more flexibility.

So, is downsizing worth the effort?

If your next home makes everyday life easier and gives you more freedom, the answer may still be yes even if the financial savings aren’t enormous.

Don’t Wait Until You Have to Move

One of the most common downsizing mistakes is waiting too long.

Homeowners often stay because moving feels overwhelming. There may be decades of belongings to sort through, sentimental items to deal with and an entire house to prepare for sale. That is understandable.

The problem is that eventually the decision can be made for you. Health changes, mobility issues, the loss of a spouse or simply the increasing difficulty of maintaining a property can suddenly turn downsizing into something that needs to happen quickly.

Planning earlier gives you options.

You can take your time deciding where you want to live, determine what type of home fits your future plans and gradually start reducing the amount of stuff you need to move.

How to Downsize Without Making It Overwhelming

There is no rule saying you need to empty your house in a weekend.

If you are wondering how to downsize fast, the better approach is usually to start earlier so you don’t have to.

Begin with the easiest areas of the house: storage rooms, garages, closets and items you haven’t used in years. Decide what family members may want, what can be donated and what can simply be discarded.

From there, start thinking about your next home.

Do you still want a garage? Do you need a guest bedroom? Would you prefer a bungalow, condo or smaller freehold property? Is staying in your current neighbourhood important or would moving somewhere more walkable improve your lifestyle?

Answering those questions before you begin seriously house hunting makes the process considerably easier.

Need more advice on downsizing your home? Read these blogs next.

Start With the Numbers & Then Think About Your Life

There is no universal answer to whether downsizing makes sense.

For some Ottawa homeowners, it can unlock substantial equity and reduce their monthly expenses. For others, the financial difference may be smaller than expected. But downsizing can still be worthwhile if it gives you a home that better suits the next stage of your life.

Before making the decision, find out what your current home is realistically worth, determine what your preferred next property will actually cost and include all of the expenses associated with making the move.

If downsizing has been on your mind, the best place to start is with a clear picture of your options.

Understanding what your current home may be worth, what your next move could cost and which type of property would best fit your lifestyle can make the decision much easier. At the Pilon Group, we can help you look at the numbers, explore your options and build a downsizing plan that makes sense for you, whether you are ready to move now or simply starting to think about the future.

Have questions about downsizing in Ottawa? Reach out to our team anytime, we’re here to help! Call 613.909.8100 or reach us by email at info@PilonGroup.com.