Should I Downsize? My Experience - Anne Hermary

Should I downsize? My experience

Now that I have sold and downsized from a 3,800 sq ft, North Burnaby detached house on a 6,100 sq ft lot to a 1200 sq ft two bedroom westside Vancouver condo, my friends and clients want to find out all about my experience, the process, and whether I feel that I made the right decision. 

Reasons to downsize

To begin, there are a vast number of reasons to downsize: lifestyle change, the financial benefit of using the leftover home equity from the sale of a larger home to either live mortgage free in a smaller home or to purchase investment properties, shifting from being a tenant and renting your home to being a homeowner and owning a smaller space, reducing monthly maintenance costs and payments such as higher property taxes, reducing your mortgage payment and increasing cash flow, retirement or starting a new phase in life, setting aside savings from home equity for retirement income, or less upkeep and the desire to simplify your life... Downsizing has benefits and makes sense for homeowners and those living in a rental property, but it can be a significant and real challenge - especially if you have lived in your home for a long time. I can sum up my experience by saying... it’s seriously one of the most difficult things that I have done.

Selling my "forever home"

We lived in a home built in 2016. It was approximately 3800 sq ft. It featured four bedrooms, six bathrooms, a formal living room, a spacious open floor plan kitchen/family room, a second spice kitchen, a media room, a mudroom/laundry, and a double garage. We enjoyed our outdoor space and the wonderful family-oriented neighbourhood that we lived in. I purchased this home before its construction was complete, after having lived for four years in Coquitlam. My decision to move to North Burnaby was to have my children live closer to their respective schools, activities, and friends. When I bought this house, it was going to be our “forever home”; or certainly one that I would live in for a few decades and have my children visit for holidays. So, what happened? 

 Why I downsized?

Why did I downsize? As a single mom, my eldest two daughters have left and relocated to the east coast for school and work. Having only one son living with me (as well as our two fur babies), reducing our footprint in Metro Vancouver made sense. The cost, expenses, and regular repairs and maintenance of a larger house, which we did not fully use, needed to make more sense. My decision to sell was a year or more in the planning stages, but my home sale was quick. With all of my children making plans to plant their roots in Ontario, I decided to purchase my next “forever home” in Toronto. For the next few years, it will be an investment property for me. I decided to invest in a market when I felt the timing was right and find a smaller home in Vancouver that works for our current lifestyle. It was a lifestyle and financial decision for me that paid off.

Even if it makes sense, it may not be easy

I get it. Moving for any reason and at any time in life can be a daunting task. However, determining how to downsize and deal with your possessions can be a real challenge. Whether you call it decluttering or simplifying, it’s intimidating, and it sucks! Downsizing for me was a state of mind before it became a state of being. The secret is to understand that it is a process and to give yourself time to transition.  Your home is not only an asset. Whether you are a homeowner or a tenant, many memories are tied to your home and possessions.

The first step in downsizing is easy – purging

It feels good to rid yourself of old items you don’t need, books, clothes that are no longer worn, old sports equipment, and furniture that no longer fits your needs ( would you believe I kept the grand piano?)...Many local charities are happy to accept your donations.  It gets more difficult after that. My daughters both danced until they entered university. I am THAT mom that held onto all their costumes. Then, there are the bins of artwork and handmade presents for mommy dating back to preschool days and sentimental treasures that my mom left behind. I can’t forget the American Girl Doll collections that my daughters cherished.  How do I purge these treasures?

 It gets emotional

Family heirlooms are perhaps the most difficult items to leave behind. To me, these are the most valuable items that I own. What is important varies for all of us. But, when you’re downsizing, you will find that you have items of huge value to you that you can’t part with. I didn't want to decide at this time what to keep and what to part with. My secret place where I have stored these personal treasures that have no value to anyone but me is a $350/month storage locker with a personal deadline to clear out. 

You don't need to do it yourself

There is intentional downsizing and unintentional downsizing, the latter being much less fun. My downsizing was intentional. However, whatever your reason may be, a professional downsizer can help make the process easier by helping you organize the transition. If you are selling your home to downsize, contact an experienced and professional Realtor who is familiar with the neighbourhood that your current home is in. Consider whether you will want to purchase your next home or rent. Refer to an experienced investment planner to help with creating a financial plan. Not having to manage the entire process yourself is a huge help. There are also several good books and articles available that you can refer to. In other words, please do your research and understand that you don’t need to do everything yourself.

Consider your options

This decision was a few years in the making for me. If you're considering a shift in your housing, carefully weigh the benefits and the implications. Lifestyle, income, community, and housing goals are all factors to consider. For the time being, I am happy to say that I no longer need to clean six bathrooms, and I can focus on enjoying my time more. Have you recently sold your home? Are you considering selling your home? Are you renting and thinking about downsizing to make a move to home ownership? Are you considering renting in retirement? Have increasing mortgage rates made you think about reducing your footprint? Have you considered selling your home and renting? I would love to hear your thoughts. If you’ve downsized, I’m curious about your experience.