Condo or Home? How to Know When it's Time to Upgrade or Downsize

Throughout the duration of every homeowner’s life they will be faced with a decision of if they should upgrade their home or if it’s time to downsize. While typically downsizing used to occur when empty nesters were moving into a new chapter of their life, with inflation and costs continuously on the rise, many homeowners are now choosing to make different lifestyle decisions, which may include downsizing a little earlier.

Whether you’re in a condo and wondering if it’s time to move into something a little more spacious, or in a home and pondering whether or not you need that much space, we’re here to help. These factors will help you easily determine what the right next move is for you and your family.

How to Tell if it’s Time to Downsize

We mentioned that costs and family changes are primarily the reasons as to why homeowners decide to downsize their homes. However, there are a few more reasons as to why a family would want to move into something a little more cozier, such as a condo, townhome or  apartment.

1. Home Maintenance Has Become Too Much: Owning a home definitely takes a great deal of work. From landscaping to backyard maintenance to cleaning and caring for multiple rooms, it can be tiring. Some homeowners find that while they enjoy living in a larger space, that choosing a condo or a condo townhome may be worth their while. Not only is there less space to care for on the inside, but you’ll also have the corporation there to care for and maintain your lawn and plow your driveway during the winter months.
2. Your Home No Longer Fits Your Needs: Your home is meant to fit you, your family, and your lifestyle needs. So, if there is a change in your life, it may be time to pack up and move. These changes can include needing a one level home or condo, requiring less space, or wanting to travel more and therefore trying to cut down on costs where applicable.
3. You No Longer Need the Space: Maybe your children have moved out or you no longer entertain as much as you used to. Whatever the case may be, if you’re not utilizing all of the space of your home like you once were, it may be a sign to downsize into something a little smaller.
4. Your Spending All of Your Income on Your Mortgage: The use of space is a primary factor when it comes to downsizing, however costs also are a consideration. If you’re spending a great deal of your income every month on your mortgage, and would like to have more disposable income, downsizing will surely help. Although we must say, in this market, it’s not a guarantee! That’s why we’d recommend working with your realtor if this is a primary factor, so that you can determine the best solution.
5. You Want to Use Your Home Equity as Income: If retirement is near or if you’d like to use your home equity as income down the road, this is an option that may be feasible for you. Not only will you be spending less monthly on your mortgage, but you will also have additional money in the bank for when you retire.

How to Tell if it’s Time to Upgrade

Now, you may be a homeowner that is currently considering whether or not it is time for you to upgrade and own a home that is bigger. If this is there case, here are some considerations that may imply it’s time for you to upgrade:

1. You Need More Space: Maybe you’re preparing for a family, or someone has started working from home. Whatever the case may be, if you’re finding that your one or two better condo seems smaller than it used to, it may be time to consider moving into something more spacious like a townhome or fully-detached home.
2. You Want Your Privacy: While condo living is great, there are a few downsides which include sharing your communal spaces (such as the gym, party room, hallways, front entry) with others. If you find that you want more privacy or a space that’s fully for yourself, it’s definitely worth considering upgrading into a home.
3. You’re Ready to Take Care of More: Some people may get tired of using a garbage chute or may want a garden and backyard space of their own. If this is a strong desire or need for you and your living space, it’s definitely time to move into something that has this available.
4. The Need for a Garage or Shed: Times are different nowadays! With more people working from home and starting their own business, the need for a workshop, garage, shed, or additional rooms to create a home office are high. If this is something that you and your family needs, then upgrading is definitely worthwhile.
5. You Can Afford it: Many homeowners start off small in a condo or townhome as it is what their income allows for. However, as time goes on, circumstances may change. If you and your family can afford a large home and are ready to spend more monthly on your mortgage, then you’re probably ready to upgrade.

Home decisions can always be tough! After all, it’s a big commitment to move you and your family into a new home and a new location. However, if you’ve been considering this decision for a while and if most of these factors come into play, then you may be ready to make the move.

As always our expert team is here to help! We’ve assisted many homeowners in the Greater Toronto Area in either upgrading or downsizing their home and making the decision that’s right for them. If you have any questions or are ready to make the move, feel free to contact us today.