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The Best Time to Downsize: Finding the Right Moment for a Fresh Start

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Have you been feeling the weight of maintaining your current home? Whether it’s the constant upkeep, rising property taxes, or simply feeling that your space is too big now that the kids have left, it’s natural to think about downsizing. Many homeowners in Toronto, especially those nearing retirement or in the midst of life changes, begin wondering: When is the best time to downsize?

It’s not just about the physical move, but also about creating a lifestyle that aligns with your current needs and goals. Downsizing isn’t just about finding a smaller home—it’s about making a strategic decision that impacts your financial future, lifestyle, and overall well-being. But how do you know when the time is right?

In this blog, we’ll explore the questions that often hold people back from downsizing: When should you start downsizing? Is it worth it? And, most importantly, how can you leverage the opportune time to downsize for your personal and financial benefit?

When Should You Start Downsizing?

An elderly couple walking through Toronto.

One of the most common concerns for homeowners considering downsizing is the timing. The truth is, it’s never too early to start thinking about it.

In fact, planning ahead can make the transition smoother and more successful. Downsizing isn’t something that happens overnight, especially if you’ve lived in the same home for years, so giving yourself ample time to prepare is key.

A great starting point is to think about property taxes and your monthly housing expenses.

If you’ve been feeling the pinch of rising costs, or if you’re no longer using the full space of your current home, it’s worth evaluating whether downsizing can help. Toronto’s property market can be unpredictable. Starting early allows you to make informed decisions when the right opportunity presents itself.

If you’re already thinking about downsizing, here are a few things to consider:

  • Take a look at your current space. Do you really need all that room, or would a smaller, more manageable home serve you better?

  • Assess your financial considerations. A smaller home may mean a smaller tax bill, freeing up funds for other things, like enjoying your retirement or exploring new hobbies.

  • Start sorting through your belongings. The process of downsizing can be emotional. By starting early, you can gradually declutter without feeling rushed.

Starting the downsizing process well in advance gives you the time to make a careful, thoughtful decision about your next move.

Is Downsizing Really Worth It?

An image of an elderly couple walking down the streets of Toronto.

It’s easy to feel attached to the home you’ve lived in for many years. The memories, the space, the familiar surroundings—they’re hard to let go of.

But is it worth it to downsize?

For many, the answer is yes, but the timing and motivation are crucial. Downsizing can offer several benefits that are worth considering:

Financial Relief & Reducing Monthly Housing Expenses Like Property Taxes

One of the most obvious reasons people choose to downsize is the potential for financial relief. By moving to a smaller home, you can reduce your monthly housing expenses—and not just your mortgage. Smaller homes typically come with lower taxes, lower utility bills, and reduced maintenance costs such as a smaller condo with lower condo fees.

The savings can be used for other financial priorities, like travel, health care, or simply living more comfortably in retirement.

Simpler, More Manageable Space

Think about the effort that goes into maintaining a larger home.

From cleaning multiple rooms to mowing the lawn to dealing with constant repairs—taking care of a large house can be exhausting, both physically and mentally.

Downsizing to a more manageable space can give you the freedom to focus on the things that matter most to you. Perhaps it’s spending more time with family, enjoying hobbies, or exploring new opportunities in a retirement community.

Lifestyle Changes

Downsizing doesn’t just mean smaller spaces—it’s an opportunity to rethink your lifestyle.

Moving to a retirement community or a home in a walkable neighbourhood can bring added convenience and comfort. Many people find that the peace of mind that comes with simplifying their lives far outweighs the emotional attachment to a larger home. This could be the fresh start you’ve been looking for.

When Is the Best Time to Downsize?

An elderly couple thinking about whether they should downsize now or later.

The best time depends on several factors, but it often comes down to timing in your life and the state of the real estate market. Here’s what you should keep in mind:

Timing in Your Life

For many people, the ideal time to downsize is when they’re ready for a lifestyle change.

This could happen when you’re nearing retirement or when your adult children have moved out, and the space feels unnecessary.

If maintaining your home is becoming a burden, downsizing can help lighten that load. But there’s also the question of when to start thinking about it.

Financial experts suggest starting the downsizing process a few years before you actually plan to move. This gives you time to explore options, make smart financial decisions, and avoid rushing through the process.

Market Conditions

Real estate in Toronto fluctuates, so timing your move to take advantage of a seller’s market can help you maximize your property’s value.

When home prices are high, you may be able to sell for a profit and then purchase a smaller, more affordable home.

This move may allow you to completely remove mortgage payments as you could buy the smaller home without the need for financing. The home equity you built was enough to cover the entire cost of the smaller house.

This timing can be particularly beneficial if you’re looking to reduce your housing expenses.

Finding the Right Location

If you’re thinking about downsizing to a retirement community or a more affordable location, you’ll want to explore different options in Toronto’s vibrant neighbourhoods.

Areas like Liberty Village, The Junction, and Leaside offer great opportunities for those looking for more manageable spaces, with easy access to amenities and healthcare.

Downsizing Without Selling: Renting Your Larger Home

Kitchen of 17 Cabot Court

For many homeowners, the idea of selling their family home can feel like a big step—especially if it holds years of memories or if they aren’t quite ready to leave the neighbourhood.

However, there’s a solution that allows you to downsize without having to part ways with your home: renting it out.

Renting your larger home while moving into a smaller space can offer several benefits:

Generate Passive Income

Renting out your current home allows you to generate passive income each month, which can help offset your monthly expenses in your new, smaller home.

In some cases, the rent you receive from tenants could even cover a significant portion of your mortgage, property taxes, or maintenance costs. If you’re renting in retirement, the income you make could cover your own rental payments.

This can provide financial flexibility while still allowing you to enjoy a lower-cost lifestyle in your new home.

Keep the Option to Move Back

Another advantage of renting out your larger home is that it provides flexibility for the future.

If you’re not quite ready to sell but might want to return to your home later, renting gives you the option to keep it as an investment while still maintaining ownership.

This is particularly valuable if the home is in a neighbourhood that you may want to move back to in the future or if property values are expected to increase.

Stay Tied to Your Community

Renting out your larger home allows you to downsize while remaining in the same neighbourhood or community you’ve grown to love.

This is ideal if you’re emotionally attached to your area and don’t want to leave your neighbours, local shops, or nearby amenities. If your home is located in a desirable area of Toronto, such as near transit hubs or cultural hotspots, renting could give you a stable income while you enjoy a different kind of living arrangement.

Help Ease the Transition

For some, the emotional aspect of downsizing can be just as challenging as the physical one.

By renting out your larger home, you can take some time to adjust to your new, smaller space before making a final decision to sell.

The rental income can also provide some breathing room financially, so you’re not feeling rushed or pressured to sell. This flexibility can give you the peace of mind to focus on finding the right downsizing option without the stress of rushing into a sale.

Downsizing in Toronto: How to Save Money and Improve Your Lifestyle

Primary bedroom of 135 Maitland Street Unit 401 located in Toronto, Ontario, Canada listed by Toronto Rental Agent Marco Pedri.

Downsizing isn’t just about cutting costs—it’s about creating a lifestyle that fits your current needs.

By moving to a smaller space with lower property taxes and fewer maintenance requirements, you can free up money for things you truly enjoy. Whether it’s a dream vacation, a hobby you’ve always wanted to explore, or the comfort of knowing your finances are more secure, downsizing can provide more opportunities for a fulfilling lifestyle.

By downsizing in Toronto, you can also take advantage of neighbourhoods that are ideal for older adults or those looking for a sense of community. Retirement communities in Toronto offer convenient, maintenance-free living with access to support services and social activities. Moving to one of these communities can offer a blend of affordability and peace of mind.

Ready to Downsize? Let Marco Pedri Help You Make the Right Move

An image of a couple walking through a trail during autumn.

Making the decision to downsize can feel overwhelming, but it’s also a chance to simplify your life and save money in the long run with rising housing costs. Whether you’re looking for a smaller home like a studio apartment, a more affordable place, or a welcoming community, the right timing and support can make all the difference.

If you’re considering downsizing anywhere in the Greater Toronto Area, reach out to Etobicoke real estate agent Marco Pedri, a trusted real estate agent with years of experience helping clients find the perfect home for their needs. With Marco’s guidance, you can make the downsizing process as smooth and stress-free as possible.

Contact Marco Pedri today to start your journey toward a simpler, more affordable lifestyle.

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