It isn’t just the summer heat; Canadians were already sweating from inflation being at a 40-year high. When the Bank of Canada announced a 1% interest hike, mortgage-bound homeowners and investors really started to tremble.
With a 2.5% interest rate – the highest it’s been in years – the market is heading toward what could finally be that ‘bubble pop’ realtors in Canada’s biggest markets have been speculating about for years.
Vancouver is already experiencing the repercussions, which some might argue include an overdue drop in value. Prior to the recent interest hike, you needed an annual household income of over $200k to afford property in Vancouver.
If you’re one of those people looking to bow out of the mortgage and downsize – or reduce stress at home while you’re deciding if you can afford to move forward with your payments – here are some ways self storage can give you a much-needed break:
- Downsize your home
While high interest rates are stopping some people from entering the market, not all is lost. Buyers are still snatching up properties, albeit not at the rate (or price) they were five years ago. A buyer’s market means you should be able to unload your property, even if you have to cut your losses.
If you don’t want to sell, think about bringing in tenants to soften the mortgage blow while you rent a smaller home or apartment. A smaller property means lower utility bills, too.
Rent a storage unit to hold furniture, valuables, and any other belongings that don’t fit in your downsized property. One day you’ll be in a better position – or you’ll find that a simpler, scaled back lifestyle is actually just what you needed.
- Maximize space to reduce stress
If things are starting to get tense at home, make more space. “How can you say that when stress is the reason we’re thinking about selling?” Well, you can get more space without physically increasing your square footage: by decluttering. Less clutter means more space, more mental freedom, and more control of your environment.
We may not have control of inflation and interest rates, but we can take back some of that control at home. The process of cleaning and decluttering alone can reduce stress. And that’ll hopefully result in less tension between family members.
Moving lower priority items into a storage locker will free up a ton of space at home. You’ll still be able to access your belongings when you need them while knowing they’re just as safe (if not safer) in a secure self-storage facility.
- Say no to warehouse space
If you own commercial real estate and can downsize part of your operation, this is the time. If you have inventory or lower priority items clogging up a warehouse, move them into offsite storage and relocate your office into a smaller space. Chances are a monthly storage unit will cost you less than the difference in monthly mortgage payments.
Even though we’re dealing with the highest one-time interest rate increase in over 20 years, there’s a light at the end of the tunnel. There are always options, but it can be tough to see them during stressful times.
Trust that you’re doing the best you can and regain a little control over your finances!