Poll

How much net change in total debt reduced + equity added did this badass move help you?

We were net under-water on equity and lived to tell the tale!
0 (0%)
$1 to $100K
5 (25%)
$100K to $250K
7 (35%)
$250K to $500K
6 (30%)
$500K to The Sky Is the Limit!
2 (10%)

Total Members Voted: 20

Voting closed: November 10, 2018, 06:35:08 PM

Author Topic: We Downsized, er... Optimized! Wheeeeeeeeeeeeeeeeeeeeeeeeeeeee!  (Read 1622 times)

Money Badger

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We Downsized, er... Optimized! Wheeeeeeeeeeeeeeeeeeeeeeeeeeeee!
« on: October 11, 2018, 07:35:08 PM »
As MMM has espoused, downsizing/rightsizing primary residence can accelerate FIRE and enhance overall sense of calm and happiness (Jean Luc Picard style).   For those who did this, how much was your total sum debt $ reduced plus liquid equity $ freed from downsizing?   And it's perfectly OK to vote that you sold just to give the keys back to the bank if the house was underwater since that can be a life saving / financially enhancing move as well in many more cases than the bankers would like us to believe (particularly in major systemic / employment downturns).   Will keep the voting open for 30 days and see how this goes...

mspym

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Re: We Downsized, er... Optimized! Wheeeeeeeeeeeeeeeeeeeeeeeeeeeee!
« Reply #1 on: October 11, 2018, 08:37:06 PM »
We downsized our rental house and netted enough savings to buy a new Jazz with cash in under 6 months.
[can never buy in this market because it would be an $8-10k a month mortgage payment, even w 20% down]

ixtap

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Re: We Downsized, er... Optimized! Wheeeeeeeeeeeeeeeeeeeeeeeeeeeee!
« Reply #2 on: October 11, 2018, 08:48:16 PM »
Those are some impressive brackets there.

However, I am another renter who got a roommate because it was cheaper to share than to get a studio.

soccerluvof4

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Re: We Downsized, er... Optimized! Wheeeeeeeeeeeeeeeeeeeeeeeeeeeee!
« Reply #3 on: October 31, 2018, 08:16:17 AM »
We downsized twice in the last 8 years. Went from roughly 800k to 450k then Roughly 450k to 255k but put about 60k in the current house so that =$ 450k we roughly put into investments.

soccerluvof4

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Re: We Downsized, er... Optimized! Wheeeeeeeeeeeeeeeeeeeeeeeeeeeee!
« Reply #4 on: October 31, 2018, 08:17:27 AM »
I should also add I sold our paid for Cabin we were not using for 335k that went into investments as well.

Money Badger

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Re: We Downsized, er... Optimized! Wheeeeeeeeeeeeeeeeeeeeeeeeeeeee!
« Reply #5 on: October 31, 2018, 08:46:29 PM »
@soccerluv0f4,    That's some impressive "liquification" of equity there...   You are hereby awarded the first "500K+" bracket vote in the poll!

lhamo

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Re: We Downsized, er... Optimized! Wheeeeeeeeeeeeeeeeeeeeeeeeeeeee!
« Reply #6 on: October 31, 2018, 09:03:41 PM »
We sold our majorly appreciated Beijing condo, bought a nice house in expensive Seattle for cash, and FIREd on the surplus (well, plus retirement accounts -- but we are letting those ride and living off the house proceeds for the next 8-10 years).

I used to refer to the condo as our lottery ticket in the sky.  Was so happy when we finally cashed it in and locked in those gains! (and got the money out of China....)

jonjon

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Re: We Downsized, er... Optimized! Wheeeeeeeeeeeeeeeeeeeeeeeeeeeee!
« Reply #7 on: November 07, 2018, 06:04:08 AM »
We downsized so that we can live on one of our salaries. Got rid of the car since we plan on staying downtown in a rental with walking distance to both our jobs and to daycare for our son. This in combination with 5 year worth of savings has made me confident enough to take the leap and switch careers by going back to university. Scary but it feels really good! My colleagues at work are expressing a mixture of fascination/curiosity/envy/ridicule. In the country were I am at you can have a leave of abscence from work when going back to studying. Nice to have that as a safety net of things do not work out as planned.
All in all, I am super-proud that me and my wife has come this far together financially.

Money Badger

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Re: We Downsized, er... Optimized! Wheeeeeeeeeeeeeeeeeeeeeeeeeeeee!
« Reply #8 on: November 07, 2018, 06:32:43 PM »
Welcome to the MMM forums jonjon!   Your likely single handedly ending the banking, automobile and petroleum parasites..., er, industries clutches on you in one fell swoop...  And making the world better to boot with your studies and lifestyle choices.   Honored to have you post here first.

Slow&Steady

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Re: We Downsized, er... Optimized! Wheeeeeeeeeeeeeeeeeeeeeeeeeeeee!
« Reply #9 on: November 08, 2018, 09:10:24 AM »
Oh, I dream of downsizing.  Not going to happen right now because the current house size works for our size of family but once the little birds fly the nest, downsizing is on top of the to do list.

IF we were to downsize right now we would probably walk away with ~$100k but I am not convinced that we could buy (even a downsized house) for less than what we currently owe so the debt number probably wouldn't change in addition.  I would really enjoy sticking that $100k into investments though.

Livingthedream55

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Re: We Downsized, er... Optimized! Wheeeeeeeeeeeeeeeeeeeeeeeeeeeee!
« Reply #10 on: November 08, 2018, 12:56:32 PM »
Optimized from a 1,650 square foot 4 BR to a 1,260 square foot 3 BR in a safe but less swanky town that is within walking distance to train station, library, post office, supermarket and restaurants and eliminated all mortgage debt (just shy of $100,000).

soccerluvof4

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Re: We Downsized, er... Optimized! Wheeeeeeeeeeeeeeeeeeeeeeeeeeeee!
« Reply #11 on: November 15, 2018, 02:52:35 AM »
We downsized twice i missed the poll date over 7 years. First time from 800k to 450k then to 255k  but put 6Ok into it. So it helped us alot not to mention all the tax savings etc.. We have more to do in the house were living in but definitely helped us when we retired.

Linda_Norway

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Re: We Downsized, er... Optimized! Wheeeeeeeeeeeeeeeeeeeeeeeeeeeee!
« Reply #12 on: November 15, 2018, 05:09:00 AM »
We haven't done anything yet, but we are planning to downsize (and FIRE) next year. Selling the house should free up a little over $400K, which will be more than half of our FIRE stash. We also own a cabin that I haven't been able to convince DH to sell yet. That should be worth around $80K. As long as we still own it, it is not counted as a part of our FIRE stash.

Our FIRE stash is lower than your average planned 1M$, because we don't need to cover the rest of our lives. Only the next 20 years.

Dicey

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Re: We Downsized, er... Optimized! Wheeeeeeeeeeeeeeeeeeeeeeeeeeeee!
« Reply #13 on: November 16, 2018, 09:14:48 PM »
We had to upsize to accommodate my MIL and her pal Al Z. Heimer. We sold two houses* for about $1.1M total and paid about $900k for one single-story clown house. Happily, it's 3.5 blocks from DH's work. It's value now is $1.4M+, so when Al Z. is gone, we can downsize again. We will probably have to spend about $1M for a 3+2 fixer, ideally about 1600sf. So, $200k the first time, and maybe $500k next time?

*Each house was two-story, with no downstairs bedroom. Boo.
« Last Edit: November 17, 2018, 12:49:54 AM by Dicey »

Money Badger

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Re: We Downsized, er... Optimized! Wheeeeeeeeeeeeeeeeeeeeeeeeeeeee!
« Reply #14 on: November 16, 2018, 09:23:59 PM »
@Dicey,  No matter what else happens...  You guys are good human beings.   Al Z. and it's evil little brother dementia both suck.