Joe And Doug Williams

Downsizing into a Bungalow

29 November 2019
Joe And Doug Williams

Many of our clients who are eyeing a downsize, envision moving from the large family home into a more modest bungalow. Downsizing often accomplishes a number of goals. It unlocks long built up equity (move from a more expensive home to a less expensive home). It can reduce the level of regular maintenance & lower the ongoing costs associated with a larger home. By providing main floor living a bungalow can often provide a better lifestyle in the retirement years.

There are some common challenges that we encounter with the plan to move from a big family home to a small bungalow. The spread in value between these types of homes can be less than expected, especially if the larger home is on a comparatively smaller property. A lot of bungalows were built in older areas - when suburban lots were bigger. Land is often the main driver in real estate values - which can make modest homes, relatively expensive. The move from the two storey home to the bungalow ends up netting less than some people expect because of the large lot. On a related note - a large property may mean more maintenance than desired. 

To help unlock a greater portion of equity it is helpful to look in areas with smaller lots. A smaller lot may be more appropriate for a downsizing lifestyle anyway. Or alternatively - you can look to move to a less expensive community. Maybe living close to the GO train station was very important in your commuting years - but it is not relevant anymore. A nearby rural area could suit your retirement lifestyle, and be less expensive at the same time.  

Downsizing is a huge step - and it is usually paired with other big life changes - whether its major decluttering, retirement, or becoming empty nesters. We understand it can take a bit of time to find the right fit when you are looking to “right size.”. We would be happy to talk through your questions and concerns. Or if you know anyone who is thinking about moving that could use our assistance - we would love to talk with them!

Thank you
Joe and Doug