The Downsizing Dilemma

Share

With the children grown up and retirement upon them or looming on the horizon, empty nesters have a weighty decision to make: Where will they live next?

Downsizing from large detached homes is the most logical choice for most, but the decision can be daunting. Do they look for a smaller abode in their old neighbourhood? Embrace the convenience and excitement of downtown living? Split time between a vacation home and the city? Move away from the GTA where they'll get more bang for their buck? Buy a bungalow, townhouse or condo?

Linda Tickins, an Etobicoke broker with Sutton Group Old Mill Realty Inc. who works mainly in the popular Kingsway neighbourhood, says it's an emotionally charged decision for many clients she deals with, and "downsizing is a big trend for sure."

Jan Campbell, an agent with Century 21 in Barrie agrees.  "It's an emotional issue as well as financial issue. Many have raised their children in an area and really made a life there.  Coming to terms with it is a big thing. And speaking to a financial expert is another thing they need to do, if they have leftover equity they need to invest."

Most of the people Ms. Tickins deals with want to stay in their familiar neighbourhood and that's common in many Toronto areas. Developers such as Mady with its Brookdale development on Avenue Rd., are catering to this group by building smaller, boutique-style condos geared to downsizers in the immediate area.

Ms. Tickins finds that many clients who are selling the home they've lived in for decades face a reality check. They imagine they will sell their large detached homes, be able to buy something else and have lots of money left over, but that is not always the case if they want to stay close to their original home.

Many Kingsway area downsizers she deals with think a smaller bungalow will fit the bill, but those still come with large yards to maintain, need to be updated and have smaller rooms. And small bungalows are becoming a rare commodity in her area, Ms. Tickins says.

"We could use more of those bungalows," says Ms. Tickins. "But you're competing with first-time buyers, builders who want to develop bigger homes on those lots, and homeowners who want to add a second storey to them. It's hard. There are very few of those properties left."

She says many of her empty nester buyers are looking for a property in the $700,000 to $ 1 million range, the same as young people moving up out of condos are looking at. "The older buyers don't want to get into bidding wars. It's one thing for a young person to pay an extra $20, $30 or $40 thousand as they have time to pay it off, but an empty nester doesn't have that same luxury of time."

Townhouses are another option, but many older buyers don't want to have to contend with stairs. "So we might start looking at condos, but the ones built in this neighbourhood are in small, luxury buildings that are very expensive."

"There are very few condos, maybe only six or buildings in the Kingsway and Old Mill and that's where they want to be if they live in that area. They want a south-facing view with the sun coming in, but eventually they compromise and buy something they'll come to love," she says. 

Downsizers are cautious, Ms. Tickins finds, and while the perfect place may come up, they may not be ready to act quickly.

"You might tell them if you don't jump on that one, it may be another year before something comes up again, " says Ms. Tickins. "And a lot want to sell first so they know what's in their pocket. They may end up renting because they start looking around, knowing they have to move out of the house they've sold and they start to panic. They may end up renting for awhile."

LUXURY BOUTIQUE BUILDINGS FILL NICHE

The Brookdale condo is set in the upscale Avenue Rd.-Lawrence Ave. area and developer Mady realized that downsizers there are used to the space of a detached home and appreciate larger, luxury suites, especially in the immediate neighbourhood and nearby York Mills, Thornhill and Upper Forest Hill. Suites range from 600 to more than 3,000 square feet and there's more than 60 different floor plans. A collection of townhomes will be released later this year.

"These buyers want house-like features," says Mark Cohen of the Condo Store, who is marketing Brookdale at Avenue Rd. and Lawrence Ave. "These include features such as large outdoor spaces, barbecue possibilities in their individual and common areas, well-proportioned interior rooms, great rooms and more than one place to retire after a meal."

This group also wants double sinks in bathrooms, powder rooms, locations for fireplaces, storage and walk-in closets.

Mr. Cohen says many of the purchasers to date have been house dwellers the better part of their lives and he was surprised that this normally cautious group has been quite prompt to purchase. But he says they realize the scarcity of these types of boutique projects (there are only 97 suites) in the area.

Ms. Tickins finds homeowners who already have second homes, such as a condo in Florida or a cottage north of the city have an easier time coming to the decision to move. "It is not as difficult for them. They might want to live in a small pied a terre for part of the year. It's harder for those who live here 12 months a year."

And here are other options for those more adventurous downsizers.

DOWNTOWN CONDOS WITH HOTEL SERVICES

Fairly recent arrivals on the Toronto condo scene have been condominiums that offer the advantages of five-star hotel living. For downsizers who want uber-luxurious digs, the freedom to travel without concern, and would rather keep a housekeeper or room service on speed dial than be bothered with the tedium of cleaning and cooking, this is a great choice.

For instance, Four Seasons condo residents enjoy access to all the Four Seasons hotel services and amenities, including a deluxe spa, fitness centre and pool, 24-hour concierge, valet and doorman, in-residence dining and housekeeping. Residents can socialize at the hotel bar, eat in renowned New York chef's Daniel Boulud's restaurant or they can have a meal prepared by the hotel kitchen delivered to their suites.

Same goes at other buildings that include residential condos in a brand-name hotel, including the Trump Tower, Shangri-La and Ritz-Carlton.

UNIQUE PROJECTS, INNOVATIVE ARCHITECTURE

Paul Johnston, a realtor with Right at Home Realty, who specializes in unique urban homes, has been surprised by the number of couples who have sold or are selling larger homes in the High Park area, who are interested in the Duke condominium in the Junction.

Duke is a small, midrise building  that allows them to enhance ties to the neighbourhood while dispensing with the maintenance headaches of their previous homes.

"What's been particularly exciting are buyers who are moving into the Junction as downsizers from other neighbourhoods, because they see the exciting trajectory that the neighbourhood is on, and want to be a part of it," he says. "As one buyer pointed out – who is a long term resident of Trinity Bellwoods – the Junction is a new story unfolding, and will be such an exciting neighbourhood to play a part in."

While it's a little farther removed from downtown, Mr. Johnston says downsizers are also buying in Crafthouse, a collection of 20 modern homes in Bayview Village ranging from 3,000 to almost 6,000 square feet. That may not sound like downsizing, "but we've met a number of people who are downsizing from much larger properties," says Mr. Johnston.

"For them, it's an opportunity to live in a brand new home with far few maintenance issues, that's architecturally relevant, but they still have room for large holiday dinners, parties and ample room for the kids and grandkids to visit."

He says another appeal is that the homes are in very convenient, walkable and connected neighbourhoods.

BIGGER BANG FOR THE BUCK BEYOND GTA

Jan Campbell says the Barrie area is attracting a lot of downsizers from Toronto who find it more affordable than GTA options or are coming to be near children who have moved there. And with a good variety of housing styles, there are a lot of two-bedroom older bungalows available, as well as new bungalows, townhouses and condos.

She gives the example of an older brick bungalow with detached one car garage in Scarborough that sold recently for $674,000. A much newer, two-bedroom bungalow in Barrie with attached two-car garage is listed for $299,950.

"Barrie's one of the fastest-growing cities in Canada," says Ms. Campbell. "We have a GO station, a state-of-the-art hospital and a lot of community support and a beautiful lakeshore."  Combine that with many good restaurants and a busy roster of activities and it's a lively place for retirees.

"There are some fantastic condos and a lot of them face the lake," says Ms. Campbell. "You can spend from $160,000 to the sky's the limit if you go for a penthouse.

"Barrie is big town meets small town. It has everything that's in Toronto without the lineups."