Thinking it’s time to downsize? Are you in a position where downsizing has become a topic of conversation? Whether you’re an empty nester, a retiree, or simply seeking a more minimalist lifestyle, downsizing can be an attractive living option for this next stage of your life. Downsizing can not only save you money, it can help set you up financially for the many years ahead.
The Advantages of Downsizing
Cost Savings on Your Next Home
Downsizing means just that – going from your larger family home into a smaller house or even a condo. You may sell your home for quite a bit of money and therefore can purchase with a sizable down payment making your mortgage quite low, or perhaps even have no mortgage at all. This will free up a good amount of cash that can be put towards another investment that will make you money for years to come.
Lower Monthly Costs
Monthly fees can add up as a large homeowner – things like utilities, maintenance, property tax, and insurance. With a smaller house or condo, these monthly fees are sure to be less than what you’re currently paying for a large-family home. Sure, in a condo there will be fees, but they will be much less than what one would be used to paying, and there would be no worry around a reserve fund for those just-in-case scenarios of a home like a new roof or windows.
Financial Freedom
Many clients that go from a large family home in Toronto into a condo find the freedom that comes along with it one of the biggest advantages of downsizing. If becoming a world traveller is on your later-life agenda, condo living is made for you. The simplicity of locking a door and heading out, knowing a watchful eye is being kept on your home is the best and most peaceful way to explore the world, worry-free.
The Best Option for Downsizers: Pre-Construction Condos
If downsizing is on your radar but not something you’re actively pursuing, perhaps a pre-construction condo should be top of mind. When purchasing a pre-construction condo, you have the ability to plan for the future without making a move right away. It allows time to take care of all of the necessary things that are involved with downsizing, as it’s not an easy task. You can relieve some of the stress and pressure while making a solid plan for the future.
The Benefits of Buying Pre-Construction When Downsizing
Extended Deposit Structure
When buying pre-construction, the money paid to the developer to secure your suite, called your deposit, is usually spread out over a number of months or even years. In today’s market, I’ve seen some pretty incredible extended deposit structures, where you’re being asked to pay only 5% of the purchase price per year, up to 15% over 3 years as the project is being built.
If you have plenty of equity in your home, as most downsizers do, this is a smart way to plan for your move in the coming years without having to put things into place immediately.
Customization
Many people believe that buying pre-construction means cookie-cutter suites and today, that’s not the case. If you do your research and know your builder and their history, you’ll see that there are some out there who are happy to work with you on making changes to their builder plans.
So, you’ll be getting many of the things on your wish list that make condo living chic, modern and exactly what you want in a new home.
Options for Your Future
When buying pre-construction, you need to work with a broker who is well-versed and experienced in this type of transaction. Because you want options for your future.
Let’s say you purchase a pre-construction condo, but plans change and you want to move to the tropics to enjoy the next phase of your life. So now what? By working with a Broker who specializes in pre-construction (us!), you’ll have plenty of options for your purchase. You can sell it on assignment, keep it and rent it out, or close on it and sell. But there are a lot of legalities and conditions that need to go into your Agreement of Purchase so don’t get caught off guard. Work with the best to ensure you have options when it comes time to close.
If you’re interested in pre-construction for your future, there are two great projects that my clients are purchasing at for their downsizing future.
The Top Pre-Construction Condos for Downsizers
Q Tower will be located in Toronto’s Harbourfront neighbourhood, which is one of the top areas for those looking to downsize in Toronto. Estimated completion is in 2030, so for your long-term plan, this could be the best option for you.
Bellwoods House is a boutique building pre-construction to the Trinity-Bellwoods neighbourhood and is high on the radar for many downsizing buyers. With a true neighbourhood feel and plenty of green space around, this condo will feel like a true home in the city. Estimated completion is early 2027, so a shorter lead time here for those looking to make a move sooner.
Interested in more details on these projects? You can reach out to me directly – Romey Halabi, Broker, – 416-999-1240, or visit my information pages for these projects via the links above.
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