Is it Better to Downsize Before Retirement?

Has the thought of retiring soon crossed your mind recently?

If so, you’re not alone. In 2021, more people than ever left their jobs either for a more satisfying work experience or to leave the workforce altogether. This next chapter means a complete career change or even starting that business they’ve always dreamed of for some people.

No matter how much you love your work, exploring your options is always a good idea.

You may feel like you’ve put in your time. Now, you’re ready for a new adventure! After retirement, you will have time to pursue other lifelong passions, to travel the world or even sit back and take it easy, spending as much time with loved ones as possible.

If retirement is on your mind, there’s another very important decision you’ll soon have to make.

What will you do with your current house?

Traditionally, people downsize after retirement. From a time perspective, it makes sense. It’s a lot of work to prepare your home to get it ready to list. Why not wait until you’re no longer working and have more time to focus on the project?

In reality, many people are downsizing even before they retire. This option also makes sense.

There are many benefits to selling now, especially given the current market.

Timing of the Market

For one thing, the market heavily favours you as a seller right now.

Property values are climbing all over the country. Nowhere is seeing the impact of higher prices than the Toronto area. Listing your house now will help you capitalize on this seller-friendly market.

If you purchased your property a few years ago, you stand to see an unprecedented return on your investment. The proceeds from the sale may easily allow you to buy a smaller home or condo. Who knows? There may even be enough left over to fund an early retirement!

But as the saying goes, “money isn’t everything.”

However, there are other good reasons to sell your home beyond how much you will get for it.

Downsizing before you retire means you can enjoy your retirement years without the hassle and hard work of selling your house and moving.

Think of the Time You’ll Save

Owning your home can be rewarding, but it is also exhausting. There are no two ways around it. Homeownership is a lot of work. There is always something that needs to be done. The grass needs to be cut, weeds need to be pulled, and the snow has to be cleared from the sidewalk. And it seems that something always needs to be fixed or replaced. The never-ending list of things to do has people as young as thirty thinking, “I’m too old for this.”

One sign that it’s time for a smaller house is if you have at least one dedicated “junk room.” The more space you have, the more stuff you accumulate that you don’t need. You’re going to have to sort through and declutter all these items eventually.

What are some other signs it may be a good idea to downsize?

When the house starts to feel too big, too empty or just not what you need anymore.
You’re tired of running up and down the stairs every time you forget something.
It feels like you spend all your free time cleaning, doing maintenance or yard work.
You often find yourself wishing everything you need would be all on one level.

Are you thinking of selling your home? Here are a few resources to answer some of the questions burning in your mind:

Downsizing Sooner Can Be Good For Your Health

Less time working on your house means you have more time to take care of you.

You’ll be able to dedicate more time and energy to eating right, exercising, and staying healthy. Without a house to worry about, you’re free to pick up and go whenever you want. When you find a sweet, last-minute deal on a vacation package, you can take it without hesitation.

Whatever You Decide, it Pays to be Ready

Even if you decide to sell in a year or two, it pays to be ready now. This will help you in case you need to sell at the last minute or when your health isn’t as good as it is now.

Decluttering and scrubbing your house from top to bottom is an excellent start.

Even if you have no intention ever to sell, it feels great to live in a clean and clutter-free space.

Minor upgrades like fresh paint make your house a more beautiful place to live. They don’t cost a lot to make, but can add significant resale value. If you change your mind and decide to sell sooner, it will be a relief to have all major preparations already be out of the way.

Do you want to get an idea of what your home is worth? We offer free home evaluations with no obligations. You can get yours here.

Is it Better to Downsize Before Retirement?