Downsizing, Rightsizing, & Possibilities for Savings
We’ve talked before at Texas Lending Today about whether downsizing—building or moving into a smaller, less financially straining home—could be a possible smart solution for many Dallas-area homeowners’ woes. Apparently, it’s becoming a trend.
According to the Dallas Morning News :
Thanks to the recession, a housing bust and worries about overspending, new research shows that more homebuyers are passing up big houses in favor of something that’s more affordable to buy and maintain.
[…] More than 60 percent of the potential buyers Trulia surveyed said they wanted houses that were 2,600 square feet or less. Only 9 percent said their dream house would have 3,200 square feet or more. Builders are responding. Nationwide, new home size peaked in 2007 at 2,521 square feet and has fallen slightly since then.
Baron doesn’t need a survey to tell him that smaller houses are in demand. “This fall I have five new homes sold under 3,000 square feet,” he said. “This is where I’m carving out my niche – small and green.”
Baron’s houses are designed to mimic historic homes in the neighborhood but with the latest energy-saving features. He anticipates that the single-story house he’s building on Willis Avenue – with just over 2,000 square feet – will have electric bills under $100 a month.
In other words, smaller isn’t just smarter for many people—it’s better.
So let’s say you’ve either lost a house due to foreclosure or were forced to sell for less than you had hoped, and have found yourself struggling to get back in the market. And let’s say the kids have moved out, or the recession has helped you make some tough choices about what you do and do not need in a home. Downsizing might be right for you.
Let’s review a few of the (expanded) benefits:
One of the unintended consequences of buying that huge dream home is the massive utility bills that come with them. In other words, if a house’s HVAC system resembles what’s found behind Cowboys Stadium, that dream could quickly become a nightmare. Since many people in the recent housing bubble were already stretched to the limit just to buy their homes, sky-high bills were enough to push them over.
Furthermore, many new, smaller homes come filled with earth-friendly innovations—technologies like energy-efficient lighting systems and water heaters. These are good for both the world and your wallet.
Every little bit of cash helps in a recovery. Don’t overlook these potential savings.
Freedom. Glorious Freedom.
Simply put, downsizing gives you wonderful flexibility: Freedom to move closer to family and friends. Freedom to cut your daily work commute in half. Freedom to explore living in a new part of town. Freedom from yard work (if you move into a condo). Freedom from “dead weight”—extra space you’re paying for but not really using.
Embrace these new opportunities, and they’ll make moving much less painful.
Lower Mortgage Payments
With lower mortgage payments what will you do with that extra cash still there at the end of each month? Rebuild those decimated savings? Invest in some income property? Climb out of debt? Cherish these increased possibilities.
If you’re starting over, start on a solid foundation with a house you need (rather than the one you don’t). We can help—contact us for more information.