Perhaps it’s been on your mind for a while... maybe the kids have moved out and you really don’t need that much house anymore. Or you might be nearing retirement and want to spend more time on your hobbies than on lawn care and shovelling driveways.
Interest rates have been holding steady at record-low percentages for a couple of years. Most mortgage products are available now for under a 3% lending rate. If you’re buying a condo in your retirement and taking on a mortgage, these low lending rates mean less outgoing money every month - and because you can lock in a low interest rate for five years, it allows you the freedom of low payments for a significant amount of time.
Free up your expendable cash for more recreational activities. After all, you’ve worked hard for that money and you deserve to enjoy it!
If you’re concerned over the fluctuating market values of the past few years, the reality is that a home purchase is intended to be a long-term investment. Regardless of whether your property value dips due to seasonal variables or other factors, because you’re investing for the long-term, your property will likely appreciate as time passes.
Just like RRSPs and other long-term investments, you can’t focus on the daily fluctuations; it’s the end goal you’re aiming for. And your end goal for buying a condo is to have a home you will outright own in your retirement.
Condo projects are popping up in all parts of the city. You have your choice of an infill project in an established neighbourhood, a condo in the urban core, or a variety of condo building styles in brand new residential communities. Not only are interest rates and purchase prices low, but there is so much choice available to you in terms of location and condo style.
Because you have so much choice, you are in the driver's seat in terms of your finances and the type of condo you want to live in.
Considering the Future
Buying a condo can prepare you for any life changes that happen in the future. Do you want to be moving at a time when you may have something significant you’re dealing with such as illness or loss of income? Downsizing from a larger home can be a major task. Will you have help?
You may not need to move into a condo at this point in your life, but consider, in a few years, how willing you will be to make the move.
Your Old House Isn’t Right for You Anymore
Maybe you’re noticing more often that the house you’re currently living in doesn’t suit your lifestyle. It’s taking more work to keep bedrooms clean that aren’t really needed anymore, or tend to a yard that stays empty most days. Maybe you’re growing weary of hauling laundry up and down two flights of stairs.
The home you loved might be far away from grandkids now, and you want to find a home closer to them. Worst of all, you’re paying for utilities and higher property taxes in a house that’s just too big.
You’ve made it work for a while, but maybe it’s time to consider finding a new home that fits your current needs in terms of size, location, and amount of maintenance required.
Ageing In Place
Having a home you can live in as you get older will alleviate a lot of stressful decisions. Think about your current house and what life might be like ten years from now in that home. Will you still be able to care for it the way you have been? Will you want to?
Only you can decide when it’s the right time to buy a condo for your lifestyle, but considering a few of these factors can help make the decision a bit easier. It’s your future, and you hold the power to reap the benefits.