Downsizing

[cschin4]

We are considering another downsize. We sold our McMansion a few years back (not really a McMansion but a much larger home sq. ft wise) and now live in current 4 BR family home. There is a nice ranch home for sale that we really like but has 3 BR instead of 4, has smaller yard but the yard is really nice, flat (which is a big plus around here) and beautifully landscaped plus a Florida room and small patio. The home feels very cozy and there unfinished basement area so that would be great for a game room for the kids. In the long run, it would be home much easier to maintain than our current and after going through a series of illnesses the past couple of years, that seems to be on my radar.
What are your thoughts on downsizing?

[bjl584]

Sounds ok to me.

My only concern if I was in your position would be the amount of equity that I have in my current home and how quickly I could anticipate selling it and for what price. Or, are you considering renting your current home once you move?

[disneysteve]

Well, we never upsized so I can't speak from experience, but if you keep things simple, don't keep a lot of clutter (unlike us), and aren't emotionally attached to the house, the space or the furnishings, a smaller house has many advantages, both financial and non-financial.

[cschin4]

Our home is paid off. And, the real estate market seems to be on the uptick. I talked with my realtor and she said things are starting to sell again. And, she is a good friend of mine so i don't think she would steer me wrong. Also, i have seen a lot of properties go and and be sold pretty quickly. We would just buy the other home, I would take a mortgage just because i don't want to plunk that much down. Then, when we sell the other home, I would pay off the mortgage. Our present home has been completely remodeled, updated and in good condition so I do think it would show well.
The other home will require some mild updates as far as carpeting, changing wallpaper, etc. It has a huge unfinished basement and I really want to finish that and make a nice game room as i have 3 kids, 2 who are young teens. I think they would really enjoy that. The draw back is my sons would have to go back to sharing a BR (13 and 15). They have before and are really great friends and get along well. And, eventually, when we remodel the downstairs, my older son could set up there. But, in a couple years he will be moving out anyway.
And, I really want to divest myself of a lot of the stuff I have accumulated. I am either going to do a big haul to goodwill or call an auctioneer and make up a bunch of box lots (I don't like holding yard sales).
Maybe I worry too much about the economy. But, I am just wanting to simplify life and put myself in the best possible position.

[cypher1]

Originally Posted by cschin4

The draw back is my sons would have to go back to sharing a BR (13 and 15).

I guess that's one way to get them out right at 18. My parents should've made me share a room with younger brother to move out fast

If your home is already paid for, in a great neighborhood, already updated to your liking, is it really worth it for a whole new project of upgrades/upkeep?

Originally Posted by cschin4

And, I really want to divest myself of a lot of the stuff I have accumulated. I am either going to do a big haul to goodwill or call an auctioneer and make up a bunch of box lots (I don't like holding yard sales).

You don't need to buy a different home to start de-cluttering current one.

[MonkeyMama]

I think downsizing is fine and dandy.

I am just curious how sure you feel about this decision. It seems like you have been changing your mind every few years. Why did you buy a larger home? What was it about your current home that was so appealing? Changing homes every few years is not a sound financial strategy. There is usually a lot of expense involved.

As such, I think I would wait a while and be sure this is really where I wanted to settle for a while. Maybe renting would suit you better? It would give you more flexibility until you found what you were truly content with.

Likewise, I can't imagine a move from a 4 BR home to a 3 BR home making that much of a difference, financially. Is it really that much easier to maintain? I am skeptical about that.

If this is truly what you want - go for it. Your post just raises a lot of questions. I am trying to play a bit of devil's advocate.

[LivingAlmostLarge]

Heck no. I hate moving. And you are going to remodel more? My vote is the lazy man's NO! Unless you need to do it financially or your house really is awful, I'd stick it out until kid #3 is gone then sell and get something really small.

But I'm lazy and slothful about stuff. I have junk and I do try to minimize and declutter. But DH and I just make a pact about just not buying stuff. Thus our next house is our forever home until the kids move out. Two more moves, one into a rental, then our next home. And i'll only move if we lose a job and need to move.

Then when the last kid is off, cioa and we'll downsize. But I hate moving.

[cypher1]

Originally Posted by LivingAlmostLarge

Heck no. I hate moving. And you are going to remodel more? My vote is the lazy man's NO! Unless you need to do it financially or your house really is awful, I'd stick it out until kid #3 is gone then sell and get something really small.

But I'm lazy and slothful about stuff. I have junk and I do try to minimize and declutter. But DH and I just make a pact about just not buying stuff. Thus our next house is our forever home until the kids move out. Two more moves, one into a rental, then our next home. And i'll only move if we lose a job and need to move.

Then when the last kid is off, cioa and we'll downsize. But I hate moving.

Moving sucks also. That brings up a good point of waiting a few years for the first kid to move out (if he does) before considering. Hopefully you'll also build more equity in that time, and may have more options down the road.

[snshijuptr]

Would you downsize after the kids start moving out? With a 15 and 13 year old, you will be losing 2 bodies in 5 years. Are you going to feel that 3 bedrooms is too many? I say keep the house for now and wait until the kids are all gone for good. Then you can do one major downsize.

[cschin4]

We haven't moved that many times. We initially bought the old house, then decided to upgrade. I didn't like the neighborhood or the larger home, it was too much to maintain, clean, etc. And, i made a pretty nice profit on selling the larger home (over 50K) so not too shabby. I remodeled our current home. But, it is pretty clear that it is still an old house with old house problems. I also have some concerns about the foundation which I thought we had addressed but seem to be having some issues. And, because it is updated and the market is bouncing back, i think I could get a decent price for this as well. And, I guess I also just like to remodel as well.

[cschin4]

No, i wouldn't downsize after the kids move out. This would most likely be the home we would stay in. But, who really knows?

[jerrycates]

Downsizing is not so bad. It would not even mean that you are being spendthrift, but being practical. Do not mind if people would talk about why you are doing it, as long as it doesn't affect you, all will be well.

[Frugal]

I say downsize if you are able to, I am in the process, as are many others, of doing this. Good luck with everything!

[DebbieL]

I am a huge fan of smaller (well designed) homes. Our co-op townhouse is 2 bed/2 bath and about 1100sf. I love it. It's easier to keep clean, cheaper to keep warm, doesn't encourage us to accumulate a lot of crap, and is actually quite spacious for 3 people. If your teens get along as well as you say, I'd go for it. My siblings all got along too, and were great friends. There were 5 kids in our family (me being the baby). My older brothers shared a room as teens. I don't remember any fighting or other issues. One of them could always use the basement if that's what they'd prefer.

[maat55]

Depending on your age, you might want to think in terms of newer as apposed to older.

[snafu]

We sold SFH and downsized to a townhouse style, 4 level condo. Love it! wished I'd done it sooner but was put off by the work & associated costs involved in moving. I wouldn't buy until your house is under contract sold as the economy can change on a 'dime.'

Start now, ridding yourself of everything you don't use, don't need, doesn't serve you and your family needs. Anything new brought in requires something existing goes out. Don't use time, $$$ and energy moving extraneous stuff. We used a pkg of 'dot' stickers to denote what goes to the new place like sofa, bed, kitchen suite etc. If you don't like yard sales, start listing on Craig'slist & Kijji [local e-bay] in your community or box stuff for charity/tax deduction.

[Frugal]

You can always downsize by renting a cheaper apt.

[KennySoward]

I agree with those here who say downsizing is a good thing. For me, getting older means doing something else besides taking care of a gigantic house. Something smaller and cozier sounds nice to me, especially if you aren't the "cluttering" type.

[canada94]

Originally Posted by cschin4

Our home is paid off. And, the real estate market seems to be on the uptick. I talked with my realtor and she said things are starting to sell again. And, she is a good friend of mine so i don't think she would steer me wrong. Also, i have seen a lot of properties go and and be sold pretty quickly. We would just buy the other home, I would take a mortgage just because i don't want to plunk that much down. Then, when we sell the other home, I would pay off the mortgage. Our present home has been completely remodeled, updated and in good condition so I do think it would show well.
The other home will require some mild updates as far as carpeting, changing wallpaper, etc. It has a huge unfinished basement and I really want to finish that and make a nice game room as i have 3 kids, 2 who are young teens. I think they would really enjoy that. The draw back is my sons would have to go back to sharing a BR (13 and 15). They have before and are really great friends and get along well. And, eventually, when we remodel the downstairs, my older son could set up there. But, in a couple years he will be moving out anyway.
And, I really want to divest myself of a lot of the stuff I have accumulated. I am either going to do a big haul to goodwill or call an auctioneer and make up a bunch of box lots (I don't like holding yard sales).
Maybe I worry too much about the economy. But, I am just wanting to simplify life and put myself in the best possible position.

My advice is to never pay off all your mortgage, you are losing many tax benefits by not having a mortgage, your friend should be able to advise you on this.You dont need to have much 'outstanding' to get the full benefits.

[cschin4]

What "tax benefit" To pay $1 in interest on my home and get 20 cents back? So, if you want to send me $100,000, I will send you back $20,000. Sorry, i just simply did not see the point of paying 3x what the purchase price of my home was and calling it a "good deal".