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Moving from a 2 or 3 bedroom apartment to a smaller one: Everything you have to take into account - Infobae
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El paso de un departamento de 3 o 4 ambientes a otro más chico: todo lo que hay que tener en cuenta
Cómo es el perfil de quienes optan por esta transición y las razones que impulsan la decisión de cambio. Claves para que el proceso de ajuste de metraje sea exitoso
www.infobae.com
April 15, 2024
What is the profile of those who opt for this transition and the reasons that drive the decision to change. Keys for the footage adjustment process to be successful
By José Luis Cieri
When their children get married or move, older adults tend to downsize in m2 and look for smaller homes to live in (Illustrative Image Infobae)
Urban and personal dynamics lead you to consider moving from a large home for your new needs to a smaller one. Among these are older adults looking for practicality after their children become independent, others because they are going through separations, and those who see an investment opportunity in properties with buildable potential.
This last group often chooses to sell large houses to move to a more functional apartment, and buy another one to rent. Hence, the motivation to “downsize” varies from the search for simplification and efficient space management to economic aspects.
The decision to go from a larger to a smaller home is driven by the desire to reduce maintenance costs ( expenses rose 200% year-on-year ) and take advantage of investment opportunities.
Agustín Walger , director of Lepore Propiedades, told Infobae that “currently, we find a variety of profiles looking to change their homes due to specific personal needs and situations. Among these are owners of properties with lots suitable for real estate development, who, after the exodus of their children, consider their 3 or 4-bedroom houses too spacious and choose to sell them. Their goal is to acquire apartments with at least 2 bedrooms that allow them to live comfortably and receive family visits without feeling limited by space.”
“On the other hand, the hectic pace of modern life and a new inclination to let go has led to an increase in the number of adults looking for 1 or 2-bedroom apartments after a separation. Usually, one of the spouses remains in the family home with the children, while the other looks for a nearby place that allows them to maintain the children's routines, including school and sports,” Walger explained.
Sometimes, owners sell their large residences, especially those with valuable land for real estate development who, due to the independence of their children, find their 3 or 4 bedroom houses excessively large.
“On the one hand, there are older adults who decide to leave their houses or apartments of more than 200 m2 in search of more comfortable and manageable options, both in terms of maintenance and costs. This decision not only responds to the search for efficiency, but also to the desire to live in a space that, being more compact, implies an environment with fewer memories of the entire family. To a lesser extent, there is a group of people who choose to leave the city as a permanent residence, but want to keep an apartment in Buenos Aires,” observed Juan Manuel Vázquez Blanco , economist and General Manager of Fabián Achával Propiedades.
Why do they get smaller in m2?
Among the reasons for opting for smaller homes is the search for business opportunities and the reduction of the physical and financial wear and tear that comes with the constant maintenance of a large house.Also mentioned in the sector is the preference for enjoying open spaces and green areas among those who live in apartments, driving the search for locations that offer access to these benefits, even if this means opting for smaller homes.
Vázquez Blanco added: “The choice of 2 or 3 room apartments became more common, influenced by the intended use, the composition of the home and the economic capacity of those interested.”
Chained operation
To guarantee success in this type of operations, especially when they involve the sale of a property to acquire a smaller one, it is essential to have a clear sales decision, verify all the necessary documentation , and consider the assistance of specialists in real estate developments to facilitate the process.“In addition, it is important to coordinate the needs and times of all parties involved to avoid delays or inconveniences in chained transactions. In financial terms, selling a larger property to move to a smaller one often results in an economic surplus, allowing additional expenses to be covered, although savings or loans may be required to complete another operation satisfactorily,” explained Vázquez Blanco.
"Selling a larger property to move to a smaller one often results in an economic surplus, allowing additional expenses to be covered, although savings or loans may be required to complete another operation satisfactorily," explained Vázquez Blanco (Getty Images)
In general, chained operations require that in addition to the money received from the sale, savings or a loan must be used to cover expenses without giving up comfort.
Values and what surplus is obtained
“The sale of a 4 or 3 room apartment to move to another 3 or 2 room apartment, depending on the case, can translate into a variation in the total price of between USD 30,000 to USD 100,000, depending on the value of the property and the segment. of the market,” said Juan Manuel Vázquez Blanco.Walger illustrated with a practical example: “Taking these values, if a couple in the process of separating decides to sell their 4-room apartment, valued at USD 240,000, to buy a 3-room apartment for USD 140,000 where one of the spouses can live with the children, and additionally acquire another 2-bedroom apartment for USD 85,000, the final balance shows an approximate surplus of USD 15,000. This amount could be used to cover the expenses of the purchase and sale transactions.”
Recommendations
Patience and openness to new possibilities are advised, considering the wide offer on the market and the emergence of neighborhoods with a renewed offer of services and qualities.Changing from a neighborhood with high demand to one with less can be strategically beneficial, not only because of the potential favorable economic difference but also because of the possibility of improving quality and living conditions.
The commission on sales may fluctuate, and it is feasible to negotiate reduced fees in the case of multiple or sequential transactions.
“It is key mainly to consider the good location, that it is connected and with good services and access. And that the environments are spacious or comfortable and functional for the new destination,” said Vázquez Blanco.
Taking as an example the sale of a property in Palermo, a highly valued neighborhood both by local residents and by buyers from the interior of the country and foreigners, and the move to a lower-priced area, such as Villa Crespo, Chacarita or Almagro, with similar footage , is likely to generate a significant financial surplus.
Purchase and sale expenses
The commission varies in sales operations, but there is the possibility of negotiating lower fees in multiple or chained transactions.In the Buenos Aires real estate market, the usual practice implies that the buyer pays the real estate agency in charge of the operation a fee of 4% plus VAT of the sale price of the property, while the seller pays between 2% and 3% plus VAT.
In a chained operation, a portion of the party that pays for the unit of lower value is often subsidized.
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