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Downsizing is a big decision. When the time comes, it can be hard to navigate the first few steps of finding a new home – especially if you’ve been out of the housing market for some time. While buying again or making the switch to renting both have their pros and cons, the good news is that there have never been more options for downsizers.
Choosing between buying or renting your next home is much more than just a financial decision. Each path comes with its own set of unique responsibilities and freedoms. Here are a few things to consider when deciding whether to buy or rent.
Not sure if it’s time to leave your current home behind? Check out our tips on the benefits of downsizing here.
How you plan on spending the next chapter of your life, inside or outside of your home, is an important consideration when deciding to buy or rent. For example, many retired Canadians choose to be snowbirds, spending months at a time away from their primary home each year. If you have a similar retirement plan, moving into an apartment (whether it is a rental or condo) may be the best option for you.
In addition to holidays, accomodating for the day-to-day is important. Many downsizers often plan for less driving during their retirement, making walkable, amenity-dense condo communities most convenient.
Though not as walkable, areas outside of the city centre, such as Manotick, offer an unmatched lifestyle of quiet convenience and recreation to their residents.
Find out why we think Manotick is the new Westboro on our blog.
Interested in learning more about Manotick and Ottawa’s other unique neighbourhoods?
Freedoms and Conveniences
Owning your own home means greater freedoms when it comes to how you use the space. While tenant rights do provide renters with several privileges such as keeping pets, landlords can still place restrictions on some elements that allow you to make the space feel like home.
Owning a home also means plenty of responsibilities when it comes to upkeep and maintenance. From shoveling the driveway to landscaping and yard work, buying property comes with its fair share of duties. In most instances, renting means being able to relax and not worry about maintenance responsibilities.
For some downsizers, the sale of their home is part of a greater retirement plan. How you choose to use the funds from the sale of your home requires careful consideration. Many downsizers consider the purchase of a new home to be a safe financial investment. While a new house or condo will likely increase in value over time, housing markets can fluctuate and nothing is guaranteed. While renting doesn’t allow you to leverage your home down the line, it does free up your money, allowing you to have available capital after the sale of your home.
It’s important to remember that while homeowners may not have to pay rent, they still have to pay property taxes while renters do not. On the upside, moving to a smaller property can mean paying less in property taxes than you were before.
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As a homeowner, you’re responsible for looking after your home and property. This means covering any surprise costs that may arise such as repairs, maintenance or damage from weather events.
As a renter, surprise costs are less likely as these factors are built into your rent. If any should occur, your landlord will take on surprise costs relating to the property. This can offer renters extra peace of mind and help you to budget with confidence.
No matter whether you choose to buy or rent your next home, downsizing can open up a whole world of possibilities. As experts in Ottawa real estate, we can help you determine which option is best for you.
If you’re ready to begin your downsizing journey, get in touch with us.