When you consider Aging in Place then Buying or Renting your next home becomes your priority question.
Your next home will depend on your needs, budget and willingness to invest again in real estate. Your first available choice is to sell your home to buy a condo, a semi or a townhome, or even a vacation home in the cottage country. By moving from a bigger detached home to a condo or a smaller home, you stand to save on your monthly expenses.
In our experience, more and more Mississauga and nearby areas baby boomers and those nearing retirement are choosing condos at Square One in Mississauga. Central Erin Mills is also quite popular these days.
With upcoming Mississauga condo projects and revitalization of transit including the Hurontario LRT, City Centre will remain the top choice for downsizers and first time buyers.
Let’s say if you were to downsize from a home to a condo in downtown Mississauga, this is what your costs might look it:
- Monthly property tax on a $400,000 property for year 2017 is $250 per month.
- Monthly condo fee of approx. $0.60 per square feet. For a 1000 sq ft condo, this cost can be $600 per month.
- Hydro bill depends on use. You can budget $80 per month for condo apartments in Mississauga.
- Cable and Internet can add another $80 per month to you monthly budget. Some Mississauga buildings offer free cable TV.
Don’t forget, if you need to spend on new furniture etc., you will have to provision some money for that too.
Your second option is to rent a condo apartment, instead of buying.
As a renter, you are only responsible for paying one rent amount per month as opposed to mortgage + condo fee if you were to buy a condo.
As a condo renter, you will likely have to shell out approx. 2,000 per month to rent a 2BR condo apartment in Mississauga. Plus you would also pay hydro, Internet and cable TV. We have seen that many people these days who don’t even subscribe to cable TV, they stream their favourite shows on YouTube.
Again, since you are moving from a home to a condo, you may have to spend on new furniture and furnishings.
End of the day, by selling your home and moving into a condo, you can save money and enjoy a hassle-free life. The lump sum savings will depend on how much equity you had in the home to begin with and how much you are going to invest again in buying a condo. If your home was fully paid off, then your net savings can be a lot. If it was partially paid off, your monthly mortgage on a smaller condo will be much less. Besides, you will save on utility bills and maintenance as well. These few hundred dollars per month can quickly add up. Add up to travelling and other activities you want to do in your retirement!
Living a hassle-free life cannot be stressed on enough. As empty-nesters one should have the freedom to do what you want. Why not reduce your liabilities or use your assets to provide you peace of mind? Call your financial advisor today! And for real estate consultation we are just a phone call 905-339-5111 away!