Author Topic: Downsizing/Downgrading to buy house cash  (Read 1631 times)


  • 5 O'Clock Shadow
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Downsizing/Downgrading to buy house cash
« on: August 02, 2016, 11:59:58 AM »
With my career and family beginning to stabalize (no more relocations/no more children than we already have) my wife and I are beginning to discuss exact needs.  We currently live in a ~2,000 sq ft colonial in a suburb of detroit and have ~ 60k in equity and ~50-70k in cash we could put towards a house.  We do not struggle to make payments, etc, but are looking at long term options to get out of the work because we need to and more into the work because we want to.  There are many options to purchase a ~1200 sq ft ranch in a decent neighborhood for $110-130k that would provide us the option to pay off the house cash.  We would, however, be moving to a neighborhood that is not a desirable and has average schools rather than above average.  These are safe and family friendly cities, but again would be a downgrade from our current house and area.  I'm trying to weigh if a paid off house is worth making the move with children that will be entering elemetary soon.  We could send them to private schools but between two kids that'll cost as much as my current mortgage.  Any thoughts?  Does anyone have an experience of doing anything similar?

Miss Piggy

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Re: Downsizing/Downgrading to buy house cash
« Reply #1 on: August 02, 2016, 01:45:10 PM »
I'm confused...which is it: a "decent neighborhood" or a "neighborhood that is not desirable"?


  • Bristles
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Re: Downsizing/Downgrading to buy house cash
« Reply #2 on: August 02, 2016, 02:23:05 PM »
This is all a personal choice you have to make.

I see people paying $450k to live in a single family home in a less than desirable neighborhood with schools that do not "rate" well instead of driving 15 minutes and living in a townhouse thats about the same size for the same price in a better performing area.  (Schools that rate 3-5 out of 10 versus 8's and 9's)

You can always change the quality of a house, but you can't change the quality of the location.

Maybe if the area is in a transitional period where you can see it on the uprising, that may be one thing.

However, I am very picky about the neighborhoods and areas I would live in.


  • 5 O'Clock Shadow
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Re: Downsizing/Downgrading to buy house cash
« Reply #3 on: August 02, 2016, 02:43:47 PM »
If you're the kind of parent who worries about school quality... don't worry about school quality.  Your kids will be fine as long as the school is safe and at least mid-range. 

I would be more concerned with the built environment - will they be able to walk, bike, and play outside?  Are there other families nearby with similar aged kids?  A tribe is important, and that kind of infrastructure is hard to change.

Congrats on being able to live mortgage free!  That is a great achievement whether you take advantage of it or not.