Home equity…Everybody wants it, but what exactly is it, and how do you get it?Equity represents the degree of ownership an individual or entity has in an asset after subtracting any
Upsize or Downsize? What's Your Best Move?
Dated: January 13 2022
Deciding if it is time for your family to upsize or downsize is not always a clear choice. There are factors to consider that might push you to take the leap or stay put for a while longer.
Whether you are thinking about upsizing so your family can spread out or purging possessions so you can downsize, here are some questions to ponder.
1. HOW ARE YOU USING YOUR CURRENT SPACE?
- Do your family members feel like they don’t have adequate privacy or space to do their own thing?
- Are you tired of working at the dining table and really need an office or workshop?
- Is having the kids share bedrooms just not working out?
Maybe an upsize is warranted. On the other hand...
- Do you have rooms that aren’t being used, or are you tired of paying property taxes on more house than you need?
2. HAVE YOU CONSIDERED THE MAINTENANCE COSTS?
If upsizing is on your mind, consider the added costs for maintaining a larger home and property, whether in money or time.
- Will you be able to keep up with cleaning, lawn care, and general maintenance issues that come with owning a home? If you are ready to cross maintenance off your to-do list, perhaps you are ready to downsize to a more manageable property or one where the strata management handles that part of the job.
- Have you considered the higher property taxes involved?
- Bigger homes will mean higher utility bills, too.
3. WHAT ARE YOUR OUTDOOR SPACE NEEDS?
- Are you ready to give up having a yard or garden to downsize to a maintenance-free space?
- Do you have pets that need outdoor space?
- Do you need more outdoor space for your children to play or your dog to run around in?
The size of the house is one thing, but what comes with the property is important, too.
4. HAVE YOU LOOKED INTO THE FUTURE?
- What do you expect your needs to be in the next five, ten, or twenty years?
- Do you want a large home where your children and grandchildren will come for vacations and holidays, or will you be spending those times at their homes?
- Will you want to entertain groups of friends, or do you foresee going out for your entertainment?
- What will happen if your spouse passes; will you want to stay in the home on your own?
5. DO THE FINANCIAL IMPLICATIONS ADD UP IN YOUR FAVOUR?
- Can you handle the higher costs involved with a larger home, or are you ready to cut costs with a downsize? Consider where you stand on your current mortgage.
- Are you alright with starting a new mortgage at this point in your life, or are you in a position to purchase in cash?
- What are the tax implications for your move?
6. IS IT THE RIGHT MARKET TO UPSIZE OR DOWNSIZE?
Selling in a seller's market will be easy, but buying a new home might be a challenge. In a buyers' market, you will have many choices for your next home, but selling might be a challenge. Timing your sale and purchase will be crucial. It would be ideal to sell and buy at the same time in a balanced market, but we know that can't happen all the time.
Sales activities in your neighbourhood and the neighbourhood you're moving into will also be factors, among other things.
Whatever questions you have about purchasing your next home, I’d be honored to assist you.
You can reach out to me by simply replying to this email. Talk soon!
#downsize #upsize #move #realestate #askEmily
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