Boomers Ready to Downsize

For their next move, Canadian boomers are looking to downsize to smaller homes. According to the TD Canada Trust Boomer Buyers Report, four-in-five Canadian boomers say their next move will be to a smaller home, either to save money (46 per cent) or to enjoy more luxurious features (34 per cent).

Three-quarters of boomers say it is important that they pay off their mortgage before they retire, but less than half (44 per cent) have paid off their entire mortgage. Of those boomers with a mortgage, one-third have paid off more than 60 per cent, but one-quarter have a long way to go, having paid off less than 25 per cent of their mortgage.

For their next home, the majority of boomers (61 per cent) plan to purchase a detached house. Although condos come in as second choice at 24 per cent, more than half say they are at least considering a condo because they involve less maintenance and offer better security and amenities such as a gym or pool. The top reasons that most boomers prefer houses over condos are that they prefer to have a backyard and garden and don’t want to pay condo fees.

However, some boomers say they will stay put. Forty-nine per cent will not move, either because they want to avoid the hassle of moving, because their house is already the right size for them or they like having extra rooms for guests to visit, says the report.

Nine per cent of boomers currently own a vacation property and a further 12 per cent plan to buy one for their retirement.

More than a third of boomers surveyed are considering buying a property south of the border. One-quarter say opportunities created by the depressed real estate market have sparked their interest, while another 12 per cent were already considering real estate opportunities in the United States. The most important criteria for buying a vacation property include location, price, low maintenance, and the ability to have friends/family visit.

Results for the report were collected through a custom online survey conducted by Environics Research Group.  Information provided by http://www.remonline.com/