Downsizing

The very unique and often stressful task of downsizing!!

People decide that downsizing is best for them every day. Whether you are suddenly “empty nester’s”, moving into your first starter property, retiring or facing a new life situation which requires downsizing, the good news is that you have several options.

You can

* Move to a smaller house. When possible, look at smaller homes with a creative eye.  Can a living room be used as a guest room? Does the kitchen have a breakfast nook you can use instead of a formal dining room? Will your furniture fit in the new home or do you plan to sell or replace?

* Move to a condominium. A condo requires less (or no) maintenance work on your part, and often includes security and/or leisure features. But if you're trying to reduce your expenses, make sure all the costs (including maintenance fees) fit your budget.

* Move to the U.S. or another country. Find out about the cost of American health care, Canadian dollar value, rules governing Old Age Security pensions, etc. before making your final decision. No matter where you're looking to move, consider renting before you buy, to make sure the place meets your expectations. Carefully research both the quality and cost of living in the locations you're looking at. Try your local library or bookstore for information on retirement relocation.

* Move to a retirement home or senior citizen complex. There are homes for every need and budget. Some offer an efficiency apartment with meals taken communally, others offer full amenity apartments with eat-in kitchens. Some expect their tenants to be fully independent; others will also have services for tenants with health concerns and reduced mobility. To help you choose, there are agencies that specialize in matching homes to your needs and budget.

*Move to an extended-care facility. These are located throughout Canada, for people requiring full medical care.

Not sure whether you should downsize?
There are many practical, financial and emotional reasons for downsizing your home:
Lower monthly expenses. If you downsize, you may save on property taxes, maintenance and utilities. You can also use the profits gained from the sale of your current home to reduce or eliminate an existing mortgage balance.

* Extra retirement income. You can put the profits from selling your home into income-producing investments that supplement your existing income.

* Too many empty rooms. Perhaps your children have left home and you're experiencing what's commonly known as "empty nest syndrome."

* A simpler lifestyle. If you're retired, travel a lot or own a vacation cottage, you may no longer want a big house or a yard to maintain.

* More safety, security, and help. Health issues, difficulty keeping up maintenance or repairs, or just feeling uncomfortable in your current home (or neighbourhood) can be reasons to consider a retirement or assisted-living facility.

* Smaller home, better location. Selling your home could mean you can live in a place you love-perhaps closer to friends, family or your favourite pastimes.

* Smaller home, better home. Perhaps you've found a home with features and amenities you desire but don't currently have.

No matter why you're downsizing, think carefully about the kind of living arrangements you still need or want-including the expenses, location, available facilities and amenities.

Downsizing Your Possessions
In order to down size your home, you will need to look at downsizing your “stuff”!! Treasured collections, mementos, family heirlooms and antiques…most of us have deep attachments to certain possessions and the memories they stir. But living in less space usually means living with less "stuff." And cleaning out can be difficult and sometimes painful. Here are some tips that may help:

*Make sure the items are actually yours. You may have forgotten you're storing something for a friend or family member.

*Decide which items you'd like to give to family and friends.

*Think hard about how your things will fit into your new home. Keep just your favourites.

*Remember the "one-year test." If you haven't used or worn it in a year or more, you probably don't need it.

*Think about what you may be able to sell-you can use the money to buy things for your new home. (If you're really daring, consider selling all your existing furniture and buying new.)

*Ask your financial advisor if you can get a tax break for donating any of your possessions to charity.

It's a big job so do it in stages and take your time. Sort through your possessions a room at a time.