When is the right time to downsize your home? Top signs it might be time to sell.

When is the right time to downsize your home? Top signs it might be time to sell.

Have you ever heard some one say “they will have to carry me out of here”? Many seniors, retirees and empty nesters struggle with the idea of leaving their family home and downsizing into something more suitable for their current or future needs. This feeling is validated by years of cherished memories, moments, and milestones. However, while the home serves as a memento, the burden of maintaining a large family home can become increasingly difficult not only on one’s health, but also financially and mentally. Consider this; wouldn’t you rather have the time, money, and health to spend more time doing the things you love with family and friends?

Timing your move crucial. Wait too long, and you can become overwhelmed by the required maintenance or just the idea of moving. Handling the enormous task of decluttering, and filtering through a life time of collections can be daunting. Understanding when it is the right time to downsize can result in a better quality of life and save you money. Downsizing while you are still physically capable can also reduce the burden placed on family and friends to assist with the moving process.

Let’s break down some signs it may be time to consider downsizing.  

Your monthly housing expenses have risen above 30% of your annual income, leaving little leftover cash. Today mortgage qualifications require that the cost to maintain a home cannot exceed 30% of a house holds annual income. Over the years inflation has played a major role in the affordability of homeownership. As you progress through life and get closer to retirement your top earning years are in the rearview mirror it pays to think ahead. Downsizing into a more sustainable style of living, such as a condo or small-town home/strata unit can help alleviate the overall cost of ownership and maintenance. Moving can also bring short term upfront costs, from moving trucks, new furniture, lawyers and realtors. Tackling this life progression while you still maintain an active income can be a great way to ease the stress of downsizing before it becomes a financial burden.

Maintaining the home has become increasing difficult and is now causing you to feel overwhelmed. One of the largest motivators for seniors to downsize is to relieve themselves from the burden of maintenance. Operating and maintaining a large family home can be a great amount of physical and mental effort. Many family homes are multi level and as we age our mobility and physical abilities can make keeping large areas like these difficult to upkeep. From keeping up with minor or major repairs to routine maintenance such as vacuuming, lawnmowing, snow removal, painting, gutter cleaning and much more. As people age, these tasks begin to be contracted out, ultimately taking up more and more of one’s disposable income.

Your home no longer fits your needs: I understand that many seniors desire the idea to age in place, in the home they have loved for many years. However, as they grow older, they may experience challenges while maintaining the same lifestyle.For example, stairs can make it difficult to access living spaces, steep driveways present a fall risk, snow removal and lawn mowing become challenges, cabinets or storage spaces may be hard to access, high step bath tubs can be difficult to navigate, and use of ladders becomes more challenging.

For many seniors a one level home with walk in showers, wide hallways, proximity to health care and daily amenities is more desirable and allows for a better quality of life. For some strata units are the perfect fit, little required maintenance, single level entry, central location and like-minded community. For others a strata unit may not be as ideal, many people enjoy the past time of gardening and yard maintenance and wish to keep up these activities long into retirement. Identifying your motives, needs and wants early can help set you up for a more desired lifestyle.  Tackling this life progression while maintaining an active income can help ease the stress of downsizing before it becomes a financial burden.

You want or need to convert your home equity into income. For many seniors, their home value has become their largest and most successful investment, something they have worked a lifetime to pay down. Using the equity in your home to purchase smaller living quarters, can free up investment capital and provide a more relaxing and stress-free lifestyle. There are many different reasons some one may want access to these funds, from travel, medical expenses, helping kids or grandkids with post secondary tuition fees, or even helping provide a down payment for them to get a property of their own. What ever the case may be, come retirement, people are often been so caught up in the day to day of increased bills and cost of living that finding the disposable income to accomplish these goals while maintaining their current lifestyle can be difficult. Selling your home and can be a great way to free up the required capital and allow seniors to live a more relaxed and stress free as they age into the golden years.

You have had a change in lifestyle, retirement, empty nesting or even divorce. A major shift in lifestyle can also be a great sign it is time to consider downsizing. Being proactive as you approach these mile stones in life can help make the transition much easier. Moving your capital from home ownership into more liquid investments can allow you to still earn the same returns on your money while tackling the large task of moving while you still have the energy and money to do so. Remember downsizing is not just for seniors, there are many different life milestones at which considering a change in lifestyle can be positive and proactive in your long-term goals.

You are not using the entire property (unused rooms or amenities) this point related to so many others above. There comes a point were having the abundant amount of space dose not serve the same purpose it once had. Whether if be from your adult children moving out, or just a difficulty accessing certain rooms. We find ourselves paying for excess square footage that serves no more purpose than an over an oversized storage unit. Left to long, these rooms can become overbearing and difficult to sort through when life forces its hand.

You want to be closer to Family. This again serves alongside many other signs highlighted above. As life continues to evolve there may be several reasons why one might want to be closer to family. Whether it makes the commute to seeing your family easier, or we require a little more assistance now than before. Perhaps you are a new grandparent and your adult children are looking for affordable and reliable child care, after all you did raise them so you can’t be too bad at the whole being a parent thing. What ever the reason may be, if you find your self thinking that being closer to family would have a positive impact on your life, this may be a great sign it’s time to consider downsizing and prepare for your future.

I hope you found this information useful and informative. If you are considering downsizing, please refer to my next blog, “Downsizing 101” where we dive into the actual process and things to consider when making the move. Thanks for taking the time, if you enjoyed this content, have any questions or even suggestions, please feel free to connect with me. My name is Dane Sorensen, and I specialize in helping people and families like your self concur the path of downsizing.