Many Boomers are tired of waiting for the real estate market to improve to sell their homes might want to consider making a move now. The housing market appears to be stabilizing and home sales are picking up. And, while owners may not get as much for their homes as they would have several years ago, they won't pay as much for a new place either.
So if you're ready to make a move, here are downsizing tips:
Have a plan. Think about what kind of lifestyle you want. Do you prefer an urban setting? Or do you need a yard? Do you want to be part of a community that offers lots of activities and amenities such as golf courses and swimming pools? Or are you a more independent type who seeks out opportunities on your own?
Consider a short distance move. Many downsizing Boomers would rather stay here, right on Vancouver Island, and travel south for a few months in the winter.
So many baby boomers are simplifying and getting rid of the big house and all the chores, to free them up in the summers as well. Nanimioities know there is so much to explore here right on Vancouver Island. The townhouse, patio home, or condo leaves the landscape work, watering, and snow shoveling is taken care of for the complex to take care of.
If you love to boat, hike, travel to see your kids and grandkids, there is not too much holding you back.
Age restricted? Before the move, decide whether you wish this to be your last move. Think carefully about whether or not you want to live in a neighborhood with young families.
Most 55+ want to move into a neighborhood with people their own age who shared their interests. It is great to be around people with some of the same things in common.
Consider cash flow. The downsizing phase of life usually means you won't be earning as much money as you did when you were younger. "Think about cash flow," What are your sources of cash? How long will you work? How much can you expect from CPP and OAS, or a pension? Will investments generate enough income to cover expenses? Many Boomers think they'll sell an expensive house and buy a cheaper one, resulting in a nest-egg ready to draw on for living expenses. "In my experience, people find their downsized house isn't that much cheaper than their family home they sold, however, with less maintenance it ends up being a more affordable lifestyle, with time to do the things you enjoy.
Get a mortgage. The Canadian Dream may be to live mortgage free, but it often makes sense to have a mortgage, even a small one. Assuming you make a profit when you sell your current home, the proceeds could be invested and used for living expenses. If you sink all the proceeds from the sale of your house into a new house, you may not be able to generate enough cash to cover expenses.
Make a smart move. Before the move, focus on how you want to live. Think through your new lifestyle and which items will make that possible. "People may not think enough about why they're moving," If you're moving to a community that provides outdoor maintenance, you won't need the shovels and lawn mower. Think about using the extra room in the new place for the hobby you've always wanted to start, instead of saving it for guests who rarely visit. "Look forward, not back,"
Downsize thoughtfully. If you're selling a house, you'll probably spend time de-cluttering the place so it looks good for prospective buyers. But don't stop there. Sell unwanted b unwanted items on eBay, or give to family, friends, charities. However save family treasures that can't be replaced. If you don't have room for all the treasures, give them to friends or relatives who can appreciate them. And if cleaning out the basement seems overwhelming, , "Make it manageable. Tackle a desk drawer first."
Here are some great ways to get started.
How to Get Started
What to Do With All This Stuff