Just last year we bought a smaller house while in Lavender Bay – the tiny pocket of the lower north shore was famous as one of Sydney’s most livable suburb, and it has all the rights to be called as such. When friends stay over, most marvel at the house and just comments “I love your home!” No mention of “small,” or “too shabby,” as well.
There is beauty in being minimalist – and it’s not just being “contented,” but being practical. In this article, we will list some of the reasons why you too can experience more happiness in a smaller house.
Here are the top reasons why people want and buy larger homes.
- They “outgrow” their smaller one.
- They think a bigger home is the home of their dreams.
- They are convinced by a realtor that it’s better or that they can afford it.
- They had a promotion and/or raise at work.
- They want to impress others.
Another reason many of us want bigger and bigger homes is thatno one is telling us off. Our culture says bigger is always better. They believe this and get a large home only because that’s “what we ought to do” when you begin making money… you automatically buy big, nice stuff.
Now let’s talk about why you’ll actually be happier in a smaller house:
Less time spent cleaning. No kidding, this alone can be reason enough.
Less expensive. Smaller homes are naturally less expensive to purchase and keep (insurance, electricity, taxes, heating, cooling, etc.)
Easier to maintain. Smaller space, lesser items. Everyone who owned a big home understands the amount of time, energy, and sheer effort to maintain it. A smaller home, on the other hand, needs less of your time, energy, and effort to complete that task.
Less debt and less risk. You can use as many online calculators as you can to help determine how much house you can afford, but these formulas are just based on savings, net income, current debt, and monthly mortgage payments. Plus, they’re also based on the presumption that people should spend 28% of their net income on monthly mortgage payments.
The thing is, you can be financially stable and better off by spending just 15%. Why then would you ever choose to spend 28?
Mentally liberating. The bigger space you have, the more impulse to buy more furniture. Plus, the more stuff you own, the more potential for the stress you’ll get. The same is true with our largest, most valuable asset. Buying small can free your mind.
Also, smaller homes require fewer resources to build and fewer resources to maintain. And that benefits all of us.
Encourages family bonding. This is a big deal sealer for me. A smaller home can foster more social interaction for the entire family. While this can also be true for people who get bigger homes, the opposite is also true.
Wider market to sell. A smaller, more affordable house, by definition is more affordable to a larger percentage of the population than an expensive, less affordable one.
Buying a home indeed a personal decision that entails plenty of factors unique to every family and situation. If you’re keen on purchasing a smaller home, then you will benefit best from a fixed rate home loan where mortgage repayment stays the same regardless of market change. With it plus a smaller home, you get a lower down payment and more manageable monthly dues. This frees you up not only financially, but practically as well.
Now time to find that (small) home sweet home.
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