5/13/18 NOTE: Thank you all for so many amazing insights! My hubby and I feel so grateful for advice from like-minded folks! It seems the general consensus here lines up with our gut feeling, and we have decided to stay put unless the perfect smaller house comes available!
Hi All!
My husband and I are weighing the decision to downsize to a smaller home and we are curious what our fellow mustachians would do. Here are the [big picture] details:
Our current house:
-3 bedrooms and 2 bathrooms - 1750 sq. ft.
-.25 acre lot
-Mostly remodeled, but we do intend to do some more projects - the biggest being our master bathroom, which needs to be almost totally redone.
-House was built in 1951 and still has original windows, so heating/cooling is very inefficient
-No irrigation available (boo!), sprinklers are on city water
-Beautiful historic area of town
-Exteremly close to downtown
-Ideal location in terms of proximity to our community and proximity to the things we love doing
-Within our financial means, but at the top of what we would like to be spending on housing
-Equity in home: approx. $65k
The downsized home we're looking at:
-2 bedrooms and 1 bathroom - 1,100 sq. ft.
-.15 acre lot
-Not a great location, close to (but not on) a very busy/commercial street
-Neighborhood is showing signs of gentrification, but its not there yet
-Nicest home in the neighborhood
-House was built in 1915, but has been totally remodeled and restored
-No projects needed! Move in ready.
-Well within our financial means, esp. as our mortgage would be about $100k less and utilities, etc. would all be less, too.
-Irrigation available!
Pros of Moving (from our perspective)
-Lower COL overall
-Move from 30 year mortgage to 15 year mortgage
-Reach FIRE more quickly
Cons of Moving (from our perspective):
-Smaller house means less ability to have larger groups of people over
-If required, resale will be harder with 2 bedrooms and 1 bathroom
-Worse location in terms of proximity to community and things we love (closer to hubby's work, though - maybe 10 minutes closer)
-Neighborhood may take longer than anticipated to gentrify
Life Goals:
-We have one child, but anticiapte having another in 1-2 years
-We plan to go down to one income this summer
-Cash-flow starting a business
-FIRE by 45, we are both 31 now
What would you all do if you were in our shoes? Is the financial gain worth giving up our fantastic location? Is the increased financial security worth a big downsize and a less desireable neighborhood?
Thanks all! Cant wait to hear your thoughts.