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Should you downsize your home?

Should You Downsize Your Home?

Updated on April 20, 2021

 Personal Finance

Have you seen this new trend in downsizing? Tiny houses have been fashionable as summer homes or getaway retreats for decades, but now people are beginning to consider them as primary residences.

We’ve been talking about unique and interesting way to save money for awhile now; this one would obviously take some serious consideration. Changing homes is a major decision everyone has to make in their life at least once, but usually two or three times. And whenever you buy a house, it’s almost always with the consideration of building some equity in the home with an eye toward selling it in the future.

If you are one of those folks who is considering making such a move, please allow us to offer up a few ideas that might help you make the decision. When it comes to tiny houses, there actually are a lot of options that could potentially accommodate a family of just about any size.

First and foremost, changing to a tiny house lifestyle saves you money in a number of ways. On utilities, there is less space to heat or cool, fewer light bulbs to operate (go solar and pay no electricity bills whatsoever), less water usage in terms of multiple bathrooms. That’s quite a bit of money saved right there.

Tiny houses are cheaper; they average about forty thousand dollars complete, even cheaper if you build them yourself and floor plans can be purchased for very reasonable prices, sometimes even free. Less house surface means less maintenance in terms of roofing, exterior painting and general upkeep when it comes to the exterior of the home.

Now let’s look at some scenarios in which even a family of ten (!) could downsize into a tiny home. Starting with the seemingly impossible – we can tell you’re looking at the pictures and saying to yourself, “no way a family of ten will fit in there!” and you’d be right – a tiny home for a big family. But consider the idea that these cost forty thousand dollars or less a piece and three of them grouped close together will accommodate four children in one, four in another, and Mom and Dad in the main residence.

Even at full price, that’s only $120,000 for a home for a family of ten! Design the kid’s shelters to have a bathroom and the rest of the space used as bedrooms and the unit will likely cost less than the forty thousand sticker price, so let’s say thirty thousand each and now your home costs only $100,000…for a family of ten! The only real logistical issue would be dining space, but we’ve seen people get very creative with this obstacle, and it can be done.

Now let’s say you’ve invested in your dream property for retirement; a nice chunk of land next to that lake in the woods. You’ve got all the hookups and utilities ready to go, but you were originally planning on building a mountain lodge with cathedral ceilings and exposed wood beams. It’ll cost a serious fortune and certainly deplete your retirement fund. How about a tiny house instead? Not only will you still get that mountain home feel, but you’ll have more land surrounding your home with less house covering it. Buy a second unit for guests and you still save a major chunk of cash and yes, still have most of your land in its pristine condition.

Don’t live in the woods? Were you thinking about getting out of your apartment and into a McMansion in the suburbs where you’ll not only pay higher utilities but much more in fuel for the commute? Take a look at that ugly vacant lot a couple blocks over. Has it been abandoned? Doe it still have hookups to gas lines and the city’s electrical grid? Imagine getting that lot for practically nothing and putting a tiny house on it. Cover the rest of the lot in grass or make a garden of it and not only do you have your own piece of paradise in the middle of the city, but the neighborhood will probably be grateful you beautified the place.

If you are considering downsizing but find yourself short of funds, consider applying for Personal Loans for people with bad credit at CASH 1.