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When should you downsize?

292 172 Nisha Muire
Downsizing from your large Toronto home to a smaller place is a very personal decision that will be driven by several factors including your short and long-term goals, your financial situation and what you want your lifestyle to be.
The hardest part when downsizing is letting go of the past and the memories built in your family home. Naturally after building a life and raising a family in a certain place, cutting those ties will be a difficult thing to do. If you were used to hosting large family gathering during the holidays, it will mean that those traditions will have to change. However, if you are prepared to make that shift, then downsizing can be very liberating.
If you want to travel or just have more free time for yourself, then moving to a smaller place is an easy decision – especially if you trade in for a condo complex with full amenities. Even if you trade in for a smaller house with less property and maintenance costs will free up your time to do other things.
If you are now on a fixed income and your taxes and the maintenance costs on your big home keep going up and you are unsure of how you will sustain it long term, then selling and moving to a smaller townhome or condo will liberate your cash flow and even give you some investment money.

The other option would be to sell your big place and to rent – yes, rent! Contrary to the mantra of only investing in real estate, if you have a significant gain from the sale of your house, then investing it with a reputable wealth management company can provide you with a steady income in interest while preserving your capital and freeing you up from maintenance and worries about taxes.
Most people find downsizing a hard decision to make, but once made, it is often cited as one of the best decisions that they have gone with.


Nisha Muire

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