Have you found yourself considering downsizing to a condo? Drawn to the luxuries of flexibility, freedom and convenience? Condo living offers opportunities that home ownership doesn’t necessarily allow for. If you find yourself thinking about making the transition you’re not alone. There are many people considering this big, or should we say, small move! 

Before taking the leap, here are 6 things you need to consider before downsizing to a condo. 

Affordability 

Many people are drawn to the affordability condo living provides, and rightfully so. Condos are typically less expensive than single family homes - especially if you’re considering downsizing. You’re paying for less space and no longer paying for land. Things like heating and cooling a smaller space will also decrease some of your monthly bills. It is important to note that there are regular condo fees that go towards things like maintenance and repairs, however these costs typically still work out to be less expensive than the overall cost of house and land maintenance. Be sure to include monthly condo fees into your financial planning to get a clearer picture on the cost breakdown of living in a condo. 

Resale Value 

Like any real estate investment, it’s important to consider the resale value of your purchase. The resale value is what your condo could potentially sell for down the road. Why is this important to consider? Maintaining awareness on the resale value is going to provide a more accurate snapshot of your overall financial landscape. What are some things to take into consideration? Location/neighbourhood, on-site amenities, community amenities, walkability score, neighbourhood growth, and building maintenance are all worth noting. Get curious about how the building has appreciated. Are maintenance and building repairs being kept up? Is there residential or commercial growth in the area? These are all things that can impact the resale value of your condo. 

Buy First or Sell First 

Should you buy first? Or sell first? You may want to start by checking the climate of the real estate market. Are you playing in a seller’s or a buyer’s market? If it’s a seller’s market you may want to consider selling first. Many people find it a big plus not having to carry two mortgages. There is also the financial comfort of having the capital from your previous property to assist in the purchase of your new condo. Selling in a seller’s market also means you’re more likely to get multiple offers, more likely to sell over asking price and sell quickly. 

On the flipside, if it’s a buyer’s market and you’re able to buy first this may be the route you choose. Buying first means less rush and pressure. There is more room for negotiation, and you won’t have to worry about as much competition. You are also able to be more selective in the choosing process. Still unsure about buying or selling first? Connect with your real estate agent and get a feel for the market to come up with a plan that best suits you. 

Downsizing Requirements

Downsizing to a condo is going to require you to make a lifestyle change, both a physical and mental one. Take time to consider what that lifestyle change may look like for you. Yes, there will be things that you will be letting go of when you leave home ownership. For example, downsizing to a smaller space means – well, less space. Less living space and less storage space. Which may seem obvious and can still be an adjustment for many. Do what you can in advance to help prepare for this change. For example, start taking inventory of what you have and see what things you may be able to get rid before the move. Also, take time to think about all the opportunities that come with condo living and how it is going to fit the lifestyle you desire. 

Location

When it comes to where you live, location is everything. We’re sure you’ve heard it before, but we’ll say it again, location, location, location! Where you live and the lifestyle you want go hand-in-hand. Spend some time “neighbourhood shopping” and don’t rush the process. Get a feel for what various neighbourhoods in your city have to offer and what it may be like living there. Cafes and restaurants at your fingertips? Bike paths and running trails mere steps away? Get clear on what kind of lifestyle you’re looking for and look for a neighbourhood that offers it. The beautiful thing about condo living is that you get to immerse yourself in the heart of the lifestyle that you desire! 

Building Amenities 

One of the great things about condo living is that they can be a one stop shop for pretty much everything you need. There are condos out there with all the bells and whistles. We’re talking fitness centre, pool, co-working space, entertainment room, rooftop terrace, community garden and the list keeps going.  We recommend that before making the move take time to make a list of which amenities are important to you (and which ones you’ll actually use) and work with that list as a reference point when on your condo search. Take the time to find buildings that offer what it is you’re looking for. Keep in mind during your search that condo fees will reflect the number of amenities that are available to you. 

It may be a smaller space, but we get that making the decision to downsize to a condo is a big move. Start by considering these 6 things and you’ll be well on your way to make that move.