Why you should choose us
Are you ready to downsize? We can help you. At Client First Mortgage Solutions we not only help you with all of your mortgage needs, but we also provide great resources to help you when you list your home. Read 10 Things To Do Before You List Your Home for great suggestions and tips. We also have access to the widest variety of lenders to find the right solution for you. We are experts at helping you achieve your homeownership dreams. Contact us today!
Baby Boomers and downsizing
Due to the COVID-19 pandemic, downsizing has not been on most homeowners’ minds.
The most common reason for downsizing is baby boomers moving from detached homes to condo’s, townhouses, or even smaller homes in less populated communities.
With the real estate market still going strong in many cities across Canada, many baby boomers might be wondering if now is a good time to sell and downsize.
Is now a good time to downsize?
Many professionals think that the answer is YES.
With social distancing and working from home becoming a reality for Canadians, the real estate market has seen a huge increase in demand for single-family homes.
With low inventory of single-family homes the market is definitely in favor of the seller.
Many baby boomers own their homes and are in a great position to sell.
Benefits of downsizing
Benefits of downsizing include lower maintenance demands and decreased monthly costs.
Also, by downsizing earlier in retirement, baby boomers can use the equity they have spent so much time building and posively shape their futures.
The current condo market
The condominium market has slowed during the pandemic. This is not what current condo owners want to hear, however for prospective buyers this may be an opportunity.
For baby boomers selling single-family homes it’s selling high and buying low.
Reasons to hold off of downsizing
Many believe that holding onto real estate is the way to go, however things have to make financial sense to do so.
Before you sell
Look at your goals, monthly budget and lifestyle.
Evaluate the possibility of leveraging your home equity to make a down payment on a new property and rent out your existing home.
Things to consider are:
- Will the rent cover all the expenses associated with keeping the asset
- Are you open to the idea of becoming a landlord (or open to hiring a property management company)
- Will you be comfortable using a traditional down-payment plus financing strategy to pay for the new property (Dalia Barsoum of Streetwise Mortgages)