"Downsizing" house

[petershk]

DW and I have been thinking about it for a while but are now pulling the trigger.

Selling our 1.3m socal home in an expensive are and getting a 500k house in a less expensive area about 30 miles east. A bit further from the beach but the difference in what we bought the house for pays for the new house so no mortgage and no impact on liquid assets.

Lower RE taxes is just a free bonus.

Also closer to family which is nice.

Now just have to secure part-time/work more from home to negate the commute impact and if not... I guess that will mean "forced" ER.

I really love killing off 4k/mo of expenses and cutting monthly budget by 40%-50% in one blow.

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[W2R]

Congratulations on the decision to downsize! I love the lower monthly expenses that result from having no mortgage and hope you will, too. Sounds like a good, and timely move in your case if you are winding up your career and getting ready to retire or semi-retire soon.

 

[RobbieB]

Good for you!

It's nice not having a house payment -

 

[DrRoy]

I also love not having a house payment, but my house was only cost about half of your smaller one anyway.

 

[ExFlyBoy5]

It's nice not having a house payment -

I have to say, in the world of my finances, paying off my house was my proudest moment and when I think about it, I still smile. Being mortgage free is very, VERY liberating!

Congrats to the OP!

 

[38Chevy454]

I really love killing off 4k/mo of expenses and cutting monthly budget by 40%-50% in one blow.

Just move out of CA and you can probably cut an additional 10% minimum off that monthly budget

Back to your original post, good for you and that selling and move will certainly have a very significant impact on your savings and ability to retire sooner.

 

[Souschef]

Good for you!

It's nice not having a house payment -

Amen! I moved from the San Fernando Valley to a small town in Ventura County. Our home is paid for, and my property tax went from $2800 to $240. I took the remaining proceeds from my house and divided it up among our 4 sons.

 

[W2R]

I also love not having a house payment, but my house was only cost about half of your smaller one anyway.

I bought my Dream House last summer for even less than yours, but then I don't live in Southern California. I don't think I could buy an dog house there for that price. But with family there, I can understand why Petershk wants to stay there. For him, it is probably worth the higher cost.

Housing prices have gone up here a lot in the past year, so I am not seeing anything nice for the price I paid any more even here.

I know I talk a lot about my Dream House and perhaps boast too much about how much I love it and how perfect it is for me. If I do, then I'm sorry, everyone! I get carried away and do not mean to boast so much as to be joyful about it. My home was not super expensive or all "tricked out" in HGTV style. Still, it's just SO right for me.

 

[wmc1000]

W2R no apologies needed - Glad you LOVE your dream house!

 

[W2R]

W2R no apologies needed - Glad you LOVE your dream house!

Thank you! I really do. Like retirement, my perfect-for-me house is a lifetime dream come true.

 

[Dog]

It's such a good feeling to have our home paid off and being debt free. You will love it!


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[Bamaman]

We have gotten used to living in 4000+ square foot houses in Nashville and Atlanta suburbs. We moved to Alabama to a 3300 square foot house on 4 acres--downsizing getting ready for ER.

On our street, a very formal 6000 square foot house foreclosure on 5.5 acres with a pool could have bought it for $317K. But rebuilding the kitchen, floors, paint, etc. was more money and effort than we needed to have taken on.

My wife found another foreclosure--5000 square foot 5 bedroom 5 bath house with 2 double car garages in a very upscale neighborhood. We bought it for 25% less than market value, and paid cash. And it's really nice--especially for the money. Now, I've just got to sell my old house to replenish my cash reserves.

We're just so fortunate to live in the South--where houses are so much cheaper than in other regions. An ace in the hole is that my wife is on SS disability, and Alabama property taxes are waived on the disabled---a big savings.

So goes downsizing for retirement.

 

[frayne]

One word on my downsizing experience, liberating !

 

[swguy]

My fiance and I just moved to Florida from Georgia. We didn't really downsize since we were already living in the right size home for us, but getting into a single story home with a great floor plan makes a big difference. No mortgage, no stairs sure feels nice!

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[Dawg52]

Thank you! I really do. Like retirement, my perfect-for-me house is a lifetime dream come true.

Same here. My new patio home on the golf course is perfect for me. I took a neighbor down to my coastal condo last week and he said I have the best of both worlds. A golf view at home and a water view there. I sometimes have to pinch myself that I'm fortunate enough to live in an area that I can afford to have both. If I lived in CA, I would be living in a double wide.

 

[eytonxav]

Down sized almost 3 years ago, brand new energy efficient house, property tax and utilities cut in half, no yard maintenance (included in HOA fee), and gated community. One of the best retirement decisions one can make.

 

[FANOFJESUS]

Houses and cars are the best ways to cut costs. The other stuff is usually small money.

 

[brett]

Agree. We downsized from a large home to a storage container and then to a condo. Also got rid of one of two vehicles.

It has been so liberating and it has changed our lives. We will move up little soon however our priorities have changed. We did not do it to save money although we knew that we would. After 35 years of home ownership, fix ups, renos, yard work, we simply got tired of it. It became a distraction. The huge upside was financial.

 

[W2R]

Same here. My new patio home on the golf course is perfect for me. I took a neighbor down to my coastal condo last week and he said I have the best of both worlds. A golf view at home and a water view there. I sometimes have to pinch myself that I'm fortunate enough to live in an area that I can afford to have both. If I lived in CA, I would be living in a double wide.

I am so happy to read that your new patio home on the golf course has turned out to be just as perfect for you as mine is for me. You know exactly what I mean, then. All my life I have wanted a house like this. The last house was as good as I could find at the time, but it had to be near to work and cheap for LBYM so I didn't have much choice. My new-to-me house is not fancy or a mansion, but it is just perfect for me. Living here brings sheer joy to my life every single day.

We are indeed fortunate to live in areas where we can finally afford the houses we truly want. In my case, I am so lucky to have found this house right before real estate in my suburb "took off". Housing prices are not as high as in California, but still for this area they are [-]ridiculous[/-] INSANE right now. I keep track of asking and selling prices for real estate in my neighborhood, as a hobby. We enjoy laughing in disbelief at the crazy high prices even though we have no plans to ever sell.

 

[ExFlyBoy5]

...getting into a single story home with a great floor plan makes a big difference.

I will never live in a home w/ stairs again. I have always been against stairs anyway, but the couple places I have lived that had them...I hated it!

My Dad's house (they had it custom built in 1973) was designed with ZERO stairs ANYWHERE and all the doors (pocket) were made wide enough to accommodate wheelchairs. It was by design that they grow old in the house and as a matter of fact, my Mom took her last breath in her bed, in her dream home. She wouldn't have wanted it any other way. We are convinced that the "easy to get around" home actually kept her around a little longer.

And 5000 or 6000 square feet? Ah...that would be my nightmare!

 

[athena53]

When DH and I were downsizing last year, stairs were a minus because of his balance issues. In some houses, he'd see the steep stairway down to the lower level and wait upstairs while I checked it out.

We did end up with 2 levels but have 2 bedrooms on the main level (important because sometimes he can't sleep and doesn't want to disturb me). The stairway down is wide, has huge windows with lots of natural light, and had a landing midway down. To me, it's perfect; he still gets practice navigating stairs but they're safer than average.

 

[Dawg52]

We are indeed fortunate to live in areas where we can finally afford the houses we truly want. In my case, I am so lucky to have found this house right before real estate in my suburb "took off". Housing prices are not as high as in California, but still for this area they are [-]ridiculous[/-] INSANE right now. I keep track of asking and selling prices for real estate in my neighborhood, as a hobby. We enjoy laughing in disbelief at the crazy high prices even though we have no plans to ever sell.

I won't ever be tempted to sell my golf course home as prices just don't fluctuate much in my smallish town. But I may be tempted on the condo. Market prices have really gone up since I bought it 2 years ago. If values get back to where they were in 2008, might let it go. I can always lease when I want to get away for a few days.

 

[RobbieB]

I like my little house. It has a nice view and it's a good size. Good location with a view that will never change with development. But it's not my "dream house"

My dream house would be twice as big with a boat dock in the back yard and targets set up so I could shoot off the back porch. Never gonna happen, that's why it's a "dream house" -

When I was a child and wanted stuff that he was not going to provide, Pops told me "It's good to want things"

This house may not be my dream house but it certainly is a "good enough" house.

 

[jabbahop]

Our home is about 4br 2 1/2 ba 3500 sqft and our summer lake "house" is about 1100 sqft with 1 ba and 3 br. For wife and I it is great. It is a little tight when the three teenage boys are with us but the lake view is to die for. Next year we will sell the big home when the twins head off to college and will have a 2500 sqft winter home and the lake house. We have spent the last year slowly getting rid of stuff for the move.


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[brett]

I have been in Home Depot exactly once in the past four years...to buy a lightbulb.

Prior to that, when we owned our home, it was a few times a week and during renos at least every second day. Don't get hundred dollar'd to death anymore at Home Depot. Sorry guys..but I do not miss you!