Author Topic: Downsizing Stories  (Read 4922 times)

MasterStache

  • Magnum Stache
  • ******
  • Posts: 2912
Downsizing Stories
« on: May 25, 2017, 01:40:02 PM »
I searched but couldn't find any threads. Seems to be several dedicated to vehicles and other bad ass life changes. Anyone have a badass story of downsizing their house/condo/whatever?  I'll share mine. Ours might not be that badass compared to others.

Previously: Paid - 210K, $1500/mo. 30 year mortgage.  1800sqft ranch home, 3 bedroom, 3 bath with 1 acre, large in ground pool, and several thousand feet in pristine landscaping. Sold for 250K

Currently: Paid - 149K (30% down), $900/mo. 30 year mortgage. 1390sqft home with 0.8 acres (some woods), 3 bed, 3 bath. Bought for 149K, house was in foreclosure condition.

Live in a HCOL area and new house was in the neighborhood across the street. We were lucky to find and jump on it as soon as it hit the market.  Nearing complete renovation. Not having a pool and all that landscaping itself has saved a ton of money.

crispy

  • Guest
Re: Downsizing Stories
« Reply #1 on: May 25, 2017, 05:37:10 PM »
Similar story...we sold our 4 bed/3 bath 2700sf home for 300k and paid 185k for 3 bed/2 bath 1500sf fixer upper (with a full acre lot) in the adjacent neighborhood. We did about 25k in renovations which included finishing out a 500 sf bonus room, updating the bathrooms and kitchen, and putting new flooring in the whole house. It would now sell for around 240k.

The best part is we will be mortgage free in October instead of 12 years from now. Our mortgage and the expensive maintenance was difficult before so this move was life altering on a good way.
« Last Edit: May 25, 2017, 06:03:06 PM by crispy »

Life in Balance

  • Bristles
  • ***
  • Posts: 434
  • FIREd in 2019
Re: Downsizing Stories
« Reply #2 on: May 25, 2017, 06:01:10 PM »
I downsized 5 years ago from a 5-bedroom, 3 bath (was a 3/2 when I bought and I foolishly finished the basement) that I sold for around $205,000.  It was around 2500 ft2 with a large yard.  I moved to a 2 bedroom, 1.5 bath townhouse for $106,000.  My mortgage payment went from a 20-year with a fixed payment of $1275 (PITI + HOA) to $850 (PITI + HOA) on a 15-year fixed.  The BEST thing about the change was not having to spend my weekends or evening taking care of grass--trying to coax it to grow (new subdivision), mowing it, watering it.  Never again.  My new place is around 1400 ft2, I can clean it in a couple of hours top-to-bottom, and the HOA does all the yardwork and snow removal. 

I threw the difference in housing costs directly into my 403b and my FIRE date moved up by a decade or more simply because my annual costs went down so much.

Livingthedream55

  • Pencil Stache
  • ****
  • Posts: 525
  • Location: Massachusetts, USA
Re: Downsizing Stories
« Reply #3 on: May 26, 2017, 06:55:02 AM »
I downsized last year. I just moved about 14 miles away so still can connect with tons of family, friends in former area, go to family events, help out, etc.

Sold a bigger house in a more high status town for $425,000 and bought a a 1400 sq ft 3BR house in a safe, more working class town for $275,000. I can walk to everything I need (groceries, commuter train, post office, thrift stores!, public library, parks and some great local family owned diners) - bliss!

I only needed a $25,000 mortgage because I had so much equity to roll over into the new house so it was a definite necessity for FIRE for me.

 

MasterStache

  • Magnum Stache
  • ******
  • Posts: 2912
Re: Downsizing Stories
« Reply #4 on: May 26, 2017, 07:06:51 AM »
I downsized 5 years ago from a 5-bedroom, 3 bath (was a 3/2 when I bought and I foolishly finished the basement) that I sold for around $205,000.  It was around 2500 ft2 with a large yard.  I moved to a 2 bedroom, 1.5 bath townhouse for $106,000.  My mortgage payment went from a 20-year with a fixed payment of $1275 (PITI + HOA) to $850 (PITI + HOA) on a 15-year fixed.  The BEST thing about the change was not having to spend my weekends or evening taking care of grass--trying to coax it to grow (new subdivision), mowing it, watering it.  Never again.  My new place is around 1400 ft2, I can clean it in a couple of hours top-to-bottom, and the HOA does all the yardwork and snow removal. 

I threw the difference in housing costs directly into my 403b and my FIRE date moved up by a decade or more simply because my annual costs went down so much.

Haha, I can relate. Along with all the landscape I used to have to take care of and before I found MMM, I spent thousands installing irrigation and completely renovating my lawn. According to numerous lawncare companies and neighbors I had by far the nicest lawn in town. I even splurged on expensive golf course quality grass seed. You could have eaten off my lawn. Not a single weed. One day I realized just how much time, effort and money was being poured into he lawn. I deserved a face punch beat down.

Last year I spent a total of $30 on my current lawn. And it looks great. This year I am on track to spend 0. Man it feels good! 

heathiedeann

  • 5 O'Clock Shadow
  • *
  • Posts: 1
Re: Downsizing Stories
« Reply #5 on: May 26, 2017, 06:12:33 PM »
We moved from a 3300 sf mansion with a pool to a 1000 sf apartment.  Savings of $800/mo and we used the equity in the house to pay off a chunk of business debt. 

The $ would be far more drastic of a drop, but we moved to a much higher cost of living state for my husband to take a dream job for a non-profit. 

The emotional change has been HUGE! We went from 5 bedrooms to 2.  My kids now share a room.  No dedicated playroom or office (or media room - eye roll).  We sold around 80% of our possessions before making the move.  It definitely caused us to switch from a consumer mentality to a much more minimalist one.  We are all forced to spend time together because there is no where to hide.  I think it has made our family much stronger.

human

  • Pencil Stache
  • ****
  • Posts: 787
Re: Downsizing Stories
« Reply #6 on: May 26, 2017, 08:31:45 PM »
150k house and HCOL area don't belong in the same phrase together . . .

Largest place I've lived in as an adult was 1000 square feet which is our current condo worth 450k. Downsizing possible but as a couple this is nice. Last place single was 500 sq feet.

FrugalZony

  • Handlebar Stache
  • *****
  • Posts: 1565
Re: Downsizing Stories
« Reply #7 on: May 26, 2017, 10:08:17 PM »
Sold my 4br/3bath 2700+ sqft house, invested the money and downsized into an RV paid for with cash ;)
http://www.thefrugalhumanist.com/downsized-4-bedroom-3-bathroom-house-rv/

Not regretting a thing!
Still have too much stuff though.
« Last Edit: May 26, 2017, 10:49:18 PM by FrugalZony »

MasterStache

  • Magnum Stache
  • ******
  • Posts: 2912
Re: Downsizing Stories
« Reply #8 on: May 28, 2017, 07:25:24 AM »
150k house and HCOL area don't belong in the same phrase together . . .

Largest place I've lived in as an adult was 1000 square feet which is our current condo worth 450k. Downsizing possible but as a couple this is nice. Last place single was 500 sq feet.

Haha, you would think. But we bought the cheapest house in our neighborhood. A house in our small neighborhood sold for roughly 375K recently. The neighborhood behind us doesn't have a single house under 400K. Most are around 750K with a few in the millions. Property taxes are sky high. I am sure it is cheap compared to other places like LA or Seattle. But for a midwest town, it's very expensive.   

paddedhat

  • Handlebar Stache
  • *****
  • Posts: 2228
Re: Downsizing Stories
« Reply #9 on: May 28, 2017, 08:16:48 AM »
150k house and HCOL area don't belong in the same phrase together . . .

Largest place I've lived in as an adult was 1000 square feet which is our current condo worth 450k. Downsizing possible but as a couple this is nice. Last place single was 500 sq feet.

Haha, you would think. But we bought the cheapest house in our neighborhood. A house in our small neighborhood sold for roughly 375K recently. The neighborhood behind us doesn't have a single house under 400K. Most are around 750K with a few in the millions. Property taxes are sky high. I am sure it is cheap compared to other places like LA or Seattle. But for a midwest town, it's very expensive.

The concept of pockets of high cost housing in LCOL can be a little strange for those on the coasts. We just moved to a highly desirable, fairly affordable area in the mid-Atlantic states. The cost index here is 96, with 100 being average. The existing home we bought is small, 1100 ft, old, and needs work. It was $240ish, which is close to the national existing home price median. We bought what is essentially one of the cheapest single family homes in town. Our immediate neighborhood is largely homes worth $350-700K, yet, within a few miles I can find a perfectly livable detached, and semi detached homes, in great school districts, and highly desirable small towns, for less than half of what we spent.

When we tell friends and relatives that one of the nearby towns is developing a reputation for tear-downs, we get two reactions. First, many have no idea what we are talking about, next many find it hard to believe that anybody would spend $250K for a house, then remove it to build a 6-7000 sq. ft. trophy.  Unfortunately, like a good friend of mine from the San Francisco area said the other day, "I never thought I would see the day that your area was heading in that direction, sounds pretty familiar"
« Last Edit: May 28, 2017, 08:25:38 AM by paddedhat »