Comments on: Why Downsizing To A Smaller Home Can Make You Happier

By: Five Ways To Reduce How Much You Need To Retire By $300,000

Five Ways To Reduce How Much You Need To Retire By $300,000 — Mon, 09 Nov 2009 20:30:01 +0000

[...] lower maintenance costs, lower insurance premiums, and less hassle. Take it a step farther and downsize to a condo or townhouse close to the urban core and you can eliminate the cost of owning one or both of your cars while [...]

By: Ernest

Ernest — Sun, 23 Aug 2009 15:33:08 +0000

Interesting alternative post by “Queen.” There are many choices. My wife and I live in a mobile home, in a mainly elderly park with a pool and near a beach. Neighbors are quiet, friendly and polite, crime is zero and we have gardens and plants and a dog that is no one’s problem because we own the structure. Our rent and utilities total $400/month. Everyone says, “but those things lose value.” Yes, like the car in the driveway. While they never go to zero, like a car, let’s say they did. I paid $30K cash for it (and could get one for half that). After 8 years, that works out to another $312/mo. for 1216 sq. ft. This number will continue to drop. I have zero debt, and all but about $1000/mo. of my 6 figure income goes in the bank. There are many alternatives, and none are for everyone. Henry David Thoreau said in the 1840’s, “Most men are needlessly poor their entire lives because they think they must have a house like their neighbor’s. Consider how slight a shelter is absolutely necessary.” Amen.

By: Yael

Yael — Thu, 30 Jul 2009 12:47:02 +0000

We, too, are on the verge of moving — from a 2450 SF single family house into a ? My preference is renting a townhouse, with just one living room, as opposed to what we now have, a formal living room with separate dining room, AND a family room. We almost never use the formal living room. With cathedral ceilings, I KNOW our utility costs will be lower. Also in a townhouse, we probably would not have to pay for the water, and that’s an expense of about $80 a month for our house. As for the costs of ownership, not only do we have a mortgage of $18,000 a year, but we also must pay for property taxes ($4,000 a year), homeowners’ insurance ($2,000 a year), homeowners’ association dues ($1,200 a year). The total cost is approximately $2,100 a month. We can rent a 1700 SF townhouse for about $1,000 a month total. That is about half our current costs, not even counting utilities savings. The idea of owning a house is as a hedge against inflation — inflation in real estate — which is not forthcoming, as far as I can see. And if you can’t see your way clear to actually owning the house you live in free and clear, then the debate is moot regarding owning vs. renting. Either way, you’ll have monthly payments, but with a house, your payments are much larger, cutting significantly into monies you can spend elsewhere.
Yael