Thinking of Downsizing? Ask Yourself These 3 Questions First

When is the right time this topic is often one of those debatable areas; but the answer is very simple. If you think maintaining your current space is hard at your age or your home is a empty nest and you want a cozy home. Sometimes you just agree more with the less is more principle whatever may be the reason when you think its right personally and you are ready to make final decisions then be sure to answer the questions below;

 What is your budget?

If you’re planning to retire soon or have already entered those coveted golden years, you’ll likely be on a fixed income. Downsizing might net you a decent profit, especially if the home you’re buying next costs considerably less than the one you’re selling. Consider other expenses as you age: medical bills, health and life insurance, travel, estate planning, final expenses, and home maintenance. The common rule of thumb: Spend no more than 30% of your monthly income on housing. But in theory, it should be a lot less if you’re downsizing.

What are your options to buy in the market?

The options in the market largely depend on your current location and the prospective location you are looking to buy real estate. Often if you have  a townhome, detached, semi-detached the bargain value is better in comparison to condos. Largely another dominant factor is the inventory in the market.

How much profit will your current home make?

Unless you have a large amount to pay towards your new home; your old home has to cover all the costs plus make a little profit to ensure you have bagged a great deal. Often more that 10,000 -30,000 asking price is a great bargain.

After you’ve answered the above questions and feel confident about making your next move, find a Realtor who can help you determine what your current home is worth and what market conditions are like in the town you want to relocate. 

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Ram Sahib

Ram Sahib

CENTURY 21 President Realty Inc., Brokerage*
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