If you are one of the lucky few these days to be blessed with a small house then congratulations. Yes, a small house is indeed a blessing. Here is why you are so much better off than families with huge McMansions.
Your property values
In general, smaller homes will retain more of their value in a bad market. This is because people are more likely to buy a smaller home when times are bad. So while $500,000 newer home may be selling for only $300,000 now, a $200,000 home is selling for $195,000. This is a true example from a town near my own home.
Your maintenance and upgrade costs
Naturally, a smaller home requires less of an investment to maintain. From paint to heating and cooling, smaller homes naturally cost less in the long run. Think about the cost of replacing windows, for example. A larger home with lots of windows can cost upwards of $30,000 to upgrade. A smaller home could cost as little as $5,000 to upgrade or even less. Smaller appliances cost less to run, too.
The cost of your stuff
I don’t care how large or small a home that you have, you probably have a tendency to fill it up. Most people’s stuff expands to fit the space and then some. My first home was only about 700 square feet. The previous owners raised five children in this house. I am guessing that they didn’t spend a lot of money on belongings, because there was simply no room for stuff. Instead of closets full of clothes or rooms full of toys, a small home necessitates careful decision making on purchases. And living the simple life can expand into other areas. For example, this family spent a lot of time outdoors playing in the yard and going to community events, rather than focusing on buying their entertainment.
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