Some parents wish this moment would never come. Others, though they love their children, can’t wait for it to arrive. It’s the time when children grow up and leave to make their own way in the world. Now, the question becomes, what happens next? Should you downsize to a smaller place that is easier to maintain?
Or should you stay in your current home and enjoy the extra space and newfound peace and quiet? It’s a big decision, but there is no need to rush into anything. Fortunately, Toronto offers many options.
Start by Assessing Your Finances and Your Health
The decision of what to do next depends largely on your health and your financial resources. The sky is the limit if you’re mobile and in relatively good health. On the other hand, if your health is uncertain, your physical needs take priority. You may opt to stay close to your family and friends who can support you through the next phase in your journey.
Now it’s time to take an honest look at where you stand financially.
Money may not buy happiness, but it can open up many doors for you when it comes to your next steps. Once you have a clear picture of your health and your finances, you can decide what to do with your current home.
Your retirement years can be the best of your life. Should you downsize first?
Sell to Downsize
Selling your home and moving to a smaller condo or townhouse is the default option for many empty-nesters. There are a lot of benefits to the idea. Housing prices have increased dramatically over the last decade, which means you stand to earn a significant profit when you sell.
- For example, a detached home in Toronto goes for an average of $1,515,763 (as of August 2022).
- A townhouse averages out at $963,546.
- A condo is your least expensive option of all at $$744,092. This may also be your most convenient option as there is no maintenance to worry about. As an added bonus, everything is all on one level, which is a relief for anyone with joint pain or mobility issues.
Selling and downsizing can leave you with a healthy sum that allows you to retire in comfort. If you’ve ever wanted to travel, invest, or indulge in a new hobby, cashing out your home equity can give you that chance!
The real estate market has changed, but there are still things you can do to help maximize your results when selling. Read more below:
- How to Make Your Home Appeal to Buyers as the Market Shifts
- Buyers are Going Crazy for these Home Features
- Should I Try to Sell My Home As-Is?
Downsize and Keep Your Current Home
The rental market in Toronto is red hot. New residents and newcomers to Canada are constantly moving to the city, thanks to the availability of high-paying careers and top-notch education. With the high price of Toronto real estate, not everyone can afford to buy a house of their own, and not everyone wants to. The result is a massive pool of potential tenants who would love to rent your home.
Hanging onto your property when you move offers many financial benefits.
- It creates passive income for you every month
- Your equity continues to grow as your properties increase in value
- A property manager can handle everything for you, allowing you the freedom to be completely hands-off
- You possess a valuable asset that you can sell any time at a profit or leave as a legacy to your loved ones
Emotionally, you can take comfort in knowing that the place that holds so many fond memories for you is still in your family!
The downside of the investment option is that you don’t have the immediate influx of cash you would if you had sold. However, holding on to your home can be more profitable in the long term for those with the financial resources to make it work.
When is the right time to make your move? When it’s right for you! Here are 9 Questions to Ask Yourself Before Downsizing.
Become a Snowbird
Do you love Toronto but despise the long cold winters? If so, consider joining the million-plus snowbirds who leave the country when the snow falls and return for the warmer seasons.
Imagine spending your days on the stunning beaches of Hawaii, sipping wine in the Sonoma Valley in California or enjoying the lush scenery in Costa Rica.
No matter how far away you go, Toronto will always call you back, where you can enjoy the comforts of home and spending time with your family. If you become a snowbird, what will you do with your current home?
As indicated above, you could sell it and use the proceeds to fund your exciting new adventure. Or, if you don’t need the cash, you can hold on to it as an investment to rent out.
Ideally, you could rent it out to a family member, giving you a place to stay upon your return to Canada.
If you stay in Toronto, which neighbourhoods are best for empty nesters? This article can help you decide.
Construct a Secondary Suite in Your Current Home
What if you didn’t have to move away at all? If your current home is large enough, consider building a secondary suite on the property. This opens up many options for you. It gives you a smaller space to manage and maintain, while the rest of the house provides potential rental income. You’ll also have the peace of mind of knowing that you’ll never be truly alone.
A secondary suite lets you age in place by allowing a family member or live-in help to live on site.
Another possibility is to keep the main house and rent out the smaller unit. This decision depends on how much living space you want and how much maintenance you’re willing to do.
Options for secondary suites include a basement apartment or granny flat. If your yard is large enough, you could even construct a separate garden suite apart from the main house. This structure is quickly gaining popularity, as it allows you your independence and total privacy without ever becoming isolated.
Do you still need help deciding what your next steps are as an empty nester? We are happy to talk in more detail to help you find the right solution for you. Reach out to us by email today or call 416.769.3437 with any questions you have.
