House Hunting: Home buying trending toward small homes, less expense

01/21/14 by Jackie Russo

A "Happy Home is a Healthy Home," but what about a house that is small, efficient and devoid of high costs across the board?
Let's call that "Ecstatic."
The perception that a tiny home can't compete with a larger one has been supplanted with home owners raving about their smaller dwellings for a number of reasons, perhaps none as important as the amount of money they're saving.
That extra cash comes in a variety of forms and starts with buying the house initially. You don't have to be a financial wiz to understand that the smaller the asking price, the less expensive your monthly payment will be. You also save a pretty penny on that initial down payment.
Beyond your monthly mortgage payment being much lower, you can also count on spending less on your electricity, gas, home owners insurance and taxes.

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And good luck piecing together a budget for furniture, fixtures and accessories for a home that is huge without breaking the bank.
Naturally, the notion of buying a small house ultimately has to fit your needs accordingly. If you're married and have four children, then you probably aren't getting by comfortably on a two bedroom home. But it's hard to fathom, for example, a newlywed couple just starting out or a pair of married retirees opting for more house than they actually need.
Let's not forget that your time plays a huge role in going small with a home. Larger homes take up plenty of your time in the form of yard work and cleaning primarily, and isn't your time not only valuable but worth something to you as well?
In addition to your time, your trepidations about being a home owner might ease greatly knowing you've spent modestly on your first home. When it comes to employment or tenure at a particular job, there hardly are any guarantees. Buying a home within or even a step below your price range puts less stress on you financially, especially if you would unfortunately have a stop in your employment.
A huge number of home buyers tend to take that dollar amount they're qualified to spend and max it out accordingly. If you've been approved for $250,000 for a home, they tend to push that limit to the last penny. Instead, you should think about getting a house that is a little more modest, smaller and costs less over the course of 15-30 years.
That extra money can go in a number of directions: savings account, retirement plan, college tuition for the kids or traveling for you and your family. What's the use of having a huge house if most of your budget is set aside for one equally large mortgage payment?
Buying small has huge benefits and an upside that should push you in the direction of a home that sits securely and snug in a little neighborhood called "modesty."

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