A lot of us like myself have parents who have now reached the age of retirement or are very close to it and this market of baby boomers keeps growing and makes up a large part of our society and they own a lot of today’s properties. In a lot of cases retirees homes are there largest asset which they plan on using to help their retirement.
As a senior real estate specialist in the Ottawa Real Estate market I have worked with a lot of today’s retirees to evaluate if it is a good choice or not to sell their home and if it makes sense financially to do so. All this will depend on what the future plan is for them after selling, what kind of life style they need and looking for and of course medical reasons is a huge part of why most people sell.
Most of the people that I have worked with that have been in there home for many years are usually not wanting to sell or leave there home as they love it there and are comfortable but do so for reasons such as medical or mobility problems or costs to operate home to expensive are just some of the reasons so It is never an easy decision or process and why it is important to have a good plan of action and team of family members and professionals assisting them during this major lifestyle change. Get speaking with your family or financial advisor about all your details such as such as assets, liabilities, cash flows from pensions, investments or income from still working after retirement and then you can really work on your plan to determine when and how you can retire and what makes sense as this is big move so plan ahead to be able to make and have good choices.
I personally always suggest to my clients if need be do not buy another property such as a condo because of the price points are higher and will be harder to sell after if need to. The best option in my opinion is to rent at that point as you can move around freely , no mortgage holding you down, can use funds for other things such as helping your kids, travel, hobbies and etc. Also if you want to move around to different areas of city or buildings for different views you will have that flexibility while keeping monthly costs down in most cases
There is always other options for people who do not want to sell their home that I have seen that can work for everyone and the family:
- If you live in a bungalow then you can transform your home into a duplex by converting the basement to a secondary dwelling which will produce income for you for retirement. Also your main level has no stairs so you can add washer and dryer upstairs so you can have everything on one floor… you will increase the value of your property by doing this and also get income from the dwelling…You can rent to family or tenants ( I specialize in doing secondary dwellings and own a few bungalows which have been transformed into 2 units and would be happy to show you how it works and can be done)
- You can also rent a top floor of a duplex bungalow as you can have no stairs and still have a home like feel and space with a backyard where you have privacy and room for gardening…I rent my top floor of a bungalow for $1700 + utilities and as a landlord I would love to have retirees as tenants as they are clean, responsible, pay on time and friendly ( I personally plan to put my parents in one of my bungalows in the future and part of why I got into doing bungalows as I know we will need to get them into something without stairs in the near future)
- You can use the equity that you have in your home to take out line of credit to make renovations to your current home for mobility access, wider doors, ramp and etc to suit your needs and this way keeping you in the same home
- If you sell your property then maybe purchasing a duplex or triplex closer to the city or in location you want to be and purchase with your family as you can all share the mortgage…you will still have independence as you can live in separate units but they are not far away ( This is more expensive option but can actually reduce the bills if shared between a family and nothing is better than a Multi-Unit building for future value and cash flows and in most cases continue to grow in value)
- Move in with your kids or another retiree friends and share costs
- Subsidized housing – Very cost effective but there is a long wait list in most cases
- Senior Living Communities
There is a lot of options for people who are looking to retire and the most important thing is to plan ahead and start talking with family to see what options will make sense for you guys in the future.
Below is some links to my bungalow projects that I have done and working on for you to view to get some ideas and if you are interested in these type of Bungalow transformation projects please let me know as we have done many ourselves and have helped many others get there’s. We have a team ready that does the design, management and renovation who have the experience.
If you have any questions and want to discuss the different options available then please reach out to me as I would love to help in any way I can.
A great source for information for seniors and income from the Government:
A bungalow transformation:
( You can see the before and after of how we transformed this bungalow into a modern open concept duplex with 3 bedrooms up and 3 bedrooms down each with 1 bathroom, separate laundry, separate hydro meters and lots of living space)
( This Bungalow is another project we did in Nepean which has 4 bedrooms upstairs and 4 bedrooms downstairs so if you have a large family this can be suitable for everyone)
Checkout this Bungalow that has been transformed and is currently on the market in Ottawa which has 3 bedrooms up stairs and separte unit downstairs with 2 bedrooms and is located on a large lot in quite and family oriented neighborhood of Bells Corners. These type of units that area already completed typically go between $500,000 to $600,000 depending on size, finishes and location.
Sorin Vaduva – Senior Real Estate Specialist – Sales Representative- Capital Homes Realty Inc., Brokerage
www.soldbysorin.com - Sorin@capitalrealestate.ca - 613-262-9562