Sunday October the 22nd, 2017 

TEAMJONAMANTE: *Jon*Sylvia*Mehdi*Cliff*Neil  *Sales Representatives

REMAX Realtron Realty Inc. Brokerage

Independently owned and operated

2815 Bathhurst Street, Toronto ON, M6B 3A4

Direct: 416-543-8852

Office: 416-782-8882

Toll Free Fax: 1-866-513-2193

Fax: 416-782-3329

Downsizing? What Are My Options?

June 20, 2016 - Updated: June 20, 2016

Home Ownership…Condo Life…Apartment or Condo Renting …


Scenario: Married Couple in their early to mid-60’s, retired or about to retire, owns a home worth $600,000, all the kids are gone and would rather be travelling rather than mowing the lawn and trimming the hedges.




The Bottom Line:  Spend $400,000 of $600,000 house proceeds to purchase a bungalow outside of the GTA like in Cobourg or further.  Earn  $8,000 annually (applying the 4 percent rule) by investing $200,000 from the sale of the house. Annual property-related expenses include property tax ($3360), maintenance ($2,400) and utilities ($3,600) for a total of $9,360.

Net out-of-pocket annual costs: -$1,360




The Bottom Line:  Spend $300,000 of $600,000 house proceeds to buy a condo. Earn $12,000 annuall9 (4-percent rule) by investing the remaining $300,000 from the sale of the house.  Annual property-related expenses include property tax ($2,100), Condo Fees ($4,500), Special Assessments ($1,200), Utilities ($600 for Hydro) for a total of $8,400.

Net Surplus Yearly Cash Flow: +$3,600




The Bottom Line:  Invest $600,000 house proceeds.  Earn $24,000 annually (4 percent rule).  Rent a two bedroom apartment/condo or part of a house for $1,600 per month.  Utilities ($100/month)  Total Annual Rental Expense : $20,400.

Net Surplus Yearly Cash Flow:  +$3,600


Certainly, the right choice isn’t always clear. We suggest that you do not just look at the bottom line as there are PROS & CONS  for each option and we will gladly sit down with you and your family to discuss them in detail. 



Please do not hesitate to call Jon Amante and his Team.  We will be more than happy to meet with you.

Tagged with: real estate downsizing gta durham
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