The Finance Blogger

Baby boomers all over the world are thinking about what they should do with regards to their current home and whether they should downsize or not. This post is going to address some of the issues associated with what you should think about when downsizing to a condo! There are many different issues and it really depends on your personal situation. Some of the items we will mention in this post will not really matter to you since you do not think they are important to you with your life style or situation in life. While others might make you step back a moment and really think about whether it is the right decision for you. Personally we want to downsize to a condo, but have not found the right condo that makes sense for us.

Downsizing to a Condo – Major Considerations

The major areas that we think you should consider as best we can determine are the following:

• Life style
• Expenses
• Cost of Moving
• Finances
• Family
• Health
• Climate
• Dreams

We will discuss each one in a little more detail to give you some insight regarding the the things to think about when downsizing to a condo.

Life style

For some people it is a pure lifestyle decision which is independent of many of the other thoughts we will discuss later. It is freedom to lock the door and take off, knowing that the grounds and the building will be maintained while you are away. It is not having to cut the grass or do home maintenance, at least outside. Some one else will do it for you, all be it at a cost! It is also location. Many condo’s are located in or near city center’s in close proximity shopping and restaurants. It might even be about being closer to neighbors who form a community which you can spend time with instead of having to leave the property. Many condo’s oriented to seniors are this way.

Expenses

Many people are worried about being able to deal with the expense of maintaining a home. They would rather pay a monthly condo fee which is fixed and will pay for all day to day expenses as well as some of the longer term significant issues such as windows, parking and the roof. While this is great in concept, many people get sticker shock when they hear what the actual condo fee’s are and how high they are.

Condo fees are high for a couple of reasons: first a study should have been completed which is designed to make sure that you have money in the condo accounts to pay for things as they mature; secondly, you are paying top $ for everything including those things that you would normally do yourself around the home and last, someone is making a profit, usually the condo management company you have hired to manage the affairs of the condo.

best approach is to create your own budget comparison to compare all of your day to day expenses as well as long term expenses to see which is the best approach for you.

Finances

The last statement is a great into  into our next topic. Many people are looking to reduce the monthly expenses they have for their current home and move to a condo. Unfortunately for many, this just does not work out this way. When you take into account the cost of moving, legal fee’s , redecoration fees etc, many homeowners decide to stay right were they are instead of moving. Create a budget that shows your current expenses and compare them to what it will be with your new home. This is the only way to tell if you will really save money or not. don’t forget to include heat, electricity and taxes in your expense comparison.

Cost of Moving

We mentioned the cost of moving above. These include real estate fees, legal fees, taxes if ay, actual moving costs, and redecoration costs in your new home. You may be surprised when you add all of this up!

Family

How much support will get you get from the family? Are they close by or will you move closer to them to hopefully gain the support you will need. It is a trade off between being close to family and being close to good close friends. Many people have to depend on professional support which can get very expensive. this is another item that you will want to factor into your decision.

Health

Can you continue to look after your own home and for how long? Can you climb the stairs or should you install a stair lift. Installing a stair lift is much preferable by many people compared to moving. Health can become a huge issue for many and it is tough to decide when the time is right.

Climate

Many baby boomers are trading cold climates for the warm south. This may be part of a life style decision as well. Some will maintain two homes, while others will just move to a new home, condo or otherwise for the warm weather.

Dreams

Fulfilling a dream can be another reason to think about moving to a condo. You just have to watch international house hunters to understand how many people will move to attain a dream they have always had about living in a different culture or climate. There is nothing wrong with attaining a dream, as long as you recognize that this is the real reason for downsizing to a condo in another city or climate or country! Most people do not follow their dreams.

Your thoughts on additional things to think about when downsizing to a condo are welcome. Our readers will enjoy hearing about more ideas of this sort.

For more thoughts and ideas about down sizing from your current home, click here.

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