A Vancouver Downsizing Roadmap: How We Can Help You Make the Move

So, You've Made the Decision to Downsize...

Making the decision to move from the home you've known for years is no small feat. Whether you're seeking more financial freedom, facing practical challenges like too many stairs, or you're considering a more flexible lifestyle, downsizing can bring forward a mix of emotions and concerns. As difficult as the decision may be, it can also be an exciting opportunity to reinvent how you live. 

Whatever the reason, making the actual decision to downsize can be one of the hardest steps in the process. But once you’ve taken it, the next steps will fall into place more easily.

Beyond the pragmatic steps you will take to ensure you're making a sound decision, moving out of a long-lived in home often brings up emotional concerns:

• Letting go of treasured memories: It’s normal to feel uncertainty about leaving a home filled with memories of your children growing up, holidays celebrated, and milestones achieved.

• What will your children think? Adult children can have strong opinions about selling the family home. Having open, honest conversations can help ease the transition.

• What about your neighbourhood friends? Moving away from a familiar community can feel daunting, especially if you’ve made strong friendships over the years.

• The garden you’ve nurtured: For many homeowners, their garden is a source of pride and joy.

• What about local community amenities? You may feel some apprehension about leaving behind the local coffee shop, your medical centre, or the recreation facilities you rely on

These worries are completely normal. In fact, many people experience some form of sentimental attachment to their home and community. The key is to remember that your next chapter can still include everything you love about your current life, albeit in a new setting.

Assessing Your Equity and Future Opportunity:

If you’ve owned your home for many years, you may be pleasantly surprised at how much equity has built up in your property. Understanding this equity is key to making informed decisions about your next steps.

• Equity buildup: Years of homeownership could mean that the value of your property has appreciated significantly. This can provide you with more financial flexibility to fund your next home or investment.

• Paying off your Mortgage: If you have a mortgage balance, getting a market evaluation of your current home will help determine the balance of equity that exists in your home. Mortgage prepayment penalties may apply, so understanding the terms of your mortgage agreement is essential.

• Tax considerations: If you've been deferring property taxes, it’s important to understand what impact this will have when selling your property. Deferred property taxes will be paid off from the proceeds of your sale when ownership is conveyed to the purchaser. An accountant can help you navigate these or other potential tax related issues. Secondary homes have additional tax considerations, best to consult with a tax expert when selling your vacation home. Speculation and Vacancy Tax and/or Empty Home Taxes or even GST can apply depending on your home's use.

Financial Check-In: Plan Ahead:

Before making any big moves, it's important to consult with professionals to ensure you’re making sound financial decisions.

• Meet with a financial planner: It’s essential to understand how downsizing will impact your estate. A financial planner can help you manage the transition in a way that aligns with your long-term goals.

• Talk to an accountant: Particularly one familiar with tax and family estate planning. They can advise you on potential tax implications when selling your home or moving assets and guide you as to options for your estate.

• Determine your goals: What configuration will you need in your future home? How much money will you need for your future lifestyle? Are there any loved ones you are caring for or looking to help that you need to consider?

Taking these financial steps early will give you peace of mind and ensure that you’re on the right track.
 
Downsizing is a Process:

It’s easy to think that downsizing is a one-and-done decision, but the truth is, it’s a process that takes time. Whether you’re deciding on your own or with a partner or family, here’s how to make it more manageable:

• Assess your wants and needs: Take a step back and think about your lifestyle. Do you want a single-level home for easier mobility? Are you considering a low-maintenance condo?  Are you thinking about renting or exploring a senior's residence?

• Selling and Buying: 
  • Take time to look at properties on the market and narrow down the options that work best for you including type of home (see "strata living xxxx - link here to the next blog) and neighbourhood. 
  • Narrowing your options can take energy and even have you questioning if you are making the right decision. Keep the end goal in mind and always remember downsizing is a process.

• Start decluttering and minimizing your possessions early to make the final step more manageable.

• Consider timing and cash flow, so you have a deposit ready when you find the perfect place.

Downsizing doesn’t have to be overwhelming or rushed. With the right support and a thoughtful plan, you can turn this chapter into an exciting new opportunity for freedom, flexibility, and future financial stability.

After all, 91% of those who have downsized agree they are happy with their decision. (IPSOS study)

"When we decided to downsize from the family home, Janette and Ross gave knowledgeable and sympathetic advice. They assisted us in selling our house in Dunbar and buying an apartment in the Jericho area.  It was not an easy pair of transactions to affect because we had lived in our home for over 40 years and were very reluctant to leave. We would definitely recommend their assistance to others who are in a similar situation to us." - Sandra & Michael

Reach out today, and let’s start the process of making your next move a reality!