Listen to the full episode here
1. Downsizing is a lateral move
Selling the big family home and buying a condo won’t. Downsizing the house’s square footage doesn’t always correlate with your net worth tied up in real estate.
2. More people choosing small bungalows instead of condos
There is uncertainty with condo ownership.
- How well is the condo corp run?
- What special assessments or levies are just around the corner?
- How stable are those condo fees?
Instead of monthly condo fees, people are opting to get a right-sized smaller house/bungalow.
Spend a fraction of a condo monthly fee by contracting out lawn/yard/snow work.
It’s About Control
- am I prepared to have control over a house and be responsible for its upkeep(?) vs. having a condo corp. having all the control and responsibility
- strangers running a condo corp.
- timing on repairs, personal cash-flow crunch
Challenges in Downsizing
- set expectations for your home when selling
- have you done a pricey renovation in the past?
- what you love isn’t necessarily what buyers love
- resale homes are always being compared to current trends
It’s Almost Never Worth It To Upgrade Before Selling
- reset your expectations about your house’s market value
- don’t spend your way into the next pricing bracket