CBC reports that a new Royal LePage survey found that about half of Baby Boomers surveyed in Canada planned to sell their homes and downsize.
According to Royal LePage, many of these Boomers want to move to smaller, more affordable communities.
At BGS Homes Inc., we have seen the latest phases of communities in locations such as Norwich and Norwood sell out, with Boomers being a significant percentage of buyers.
Here are several tips to determine if selling your City home is right for you:
1. Have you saved enough money for retirement? A recent survey by CIBC found that respondents believed that $756,000 was the amount respondents thought was necessary for retirement. The survey also found that 90 percent of respondents did not have a plan to get there.
According to TREB (the Toronto Real Estate Board), in the GTA in July, the average sale price of a home was over $1 million. Semi-detached homes averaged $746,000 in the GTA during the same period.
So if you are lucky enough to own a home in Toronto and paid off your mortgage, selling your home in the city and moving outside of the city could help you get close to that $756,000 goal! Visit www.bgshomes.com to see some of our latest communities and how to learn about pricing.
2. When should you sell? That same TREB survey showed that detached homes only increased 0.5% in the GTA between July 2017 and July 2018. That increase is lower than many savings accounts pay!
Over time the history of the real estate market in the GTA has been up, but downturns do happen, as has been seen during certain periods of the past year.
What would happen if all Baby Boomers sold at the same time to cash out? While that hopefully does not happen, if it did, it may cause a downturn.
There are many factors to consider when selling, but if you are near or in retirement and have no retirement savings, selling when prices are still strong may be worth considering and discussing with a real estate professional.
3. Will I get bored moving out of the City? We have built many communities within an hour and half or so outside of Toronto. A trend we notice is that people get to know their neighbours in smaller communities. You may be surprised of the fun you will have and people you will meet, all while still owning a detached home.
Further if you live within an hour and a half drive outside of Toronto, you may be able to attend your favourite sports and entertainment events in Toronto on weekends, when traffic is lighter, and spend less time driving than many people commute in weekday rush hour!
Wednesday, August 8, 2018
Wednesday, August 1, 2018
As Average Rents Go Up, How Can Renters Find Relief?
An Urban Nation study found that the average rent a Greater Toronto Area average-sized (732 square feet) condo rose 11 percent in the second quarter of 2018 compared to the same period in the prior year.
Average monthly rent hit $2,302.
Here are several longer term ways renters may be able to find relief.
1. Save money with a roommate. If you are just starting out, a roommate is a great way to save money, as you can share expenses, and typically a two-bedroom apartment is not double the price of a one bedroom. For example, in the study cited, an average one bedroom goes for $1,968, while an average two bedroom goes for $2,640. The cost of two tenants renting two average one bedrooms is $3,936. By sharing a two bedroom apartment, each tenant will save almost $650 per month, plus benefit from the ability to share other costs like any utilities and cable.
2. Write to your local member of Parliament, member of Provincial Parliament, and City Councillor and demand more affordable housing. These three levels of government have worked together to find incentives to build new affordable housing (Full disclosure, BGS Homes Inc. has built affordable apartment housing in Toronto and Whitby in conjunction with all levels of government).
3. If you can work from home, consider moving out of the GTA and buying a home. For example, a family earning $70,000 a year can afford a home valued at $350,000 with a $100,000 down payment. While that may not get you a home in the GTA, there are homes within driving distance of the GTA within that price range. Check out bgshomes.com for the latest communities we are building.
Average monthly rent hit $2,302.
Here are several longer term ways renters may be able to find relief.
1. Save money with a roommate. If you are just starting out, a roommate is a great way to save money, as you can share expenses, and typically a two-bedroom apartment is not double the price of a one bedroom. For example, in the study cited, an average one bedroom goes for $1,968, while an average two bedroom goes for $2,640. The cost of two tenants renting two average one bedrooms is $3,936. By sharing a two bedroom apartment, each tenant will save almost $650 per month, plus benefit from the ability to share other costs like any utilities and cable.
2. Write to your local member of Parliament, member of Provincial Parliament, and City Councillor and demand more affordable housing. These three levels of government have worked together to find incentives to build new affordable housing (Full disclosure, BGS Homes Inc. has built affordable apartment housing in Toronto and Whitby in conjunction with all levels of government).
3. If you can work from home, consider moving out of the GTA and buying a home. For example, a family earning $70,000 a year can afford a home valued at $350,000 with a $100,000 down payment. While that may not get you a home in the GTA, there are homes within driving distance of the GTA within that price range. Check out bgshomes.com for the latest communities we are building.
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