Despite what the old cliché says, bigger isn't always better, especially when it comes to buying a home.
Given that many people become home buyers because they're tired of the cramped apartment market, it can be hard to understand why anyone would opt for a smaller property. The only exception would be retired individuals who are looking to downsize after all their children have flown the coop. However, you don't have to wait until your golden years to hop on the tiny home buying trend.
Here are five cost-saving benefits of opting for more compact living:
- Lower mortgage bills: Smaller homes create tight quarters in your wallet as well as your living arrangement. There are many ways that you'll cut down on your expenses. For starters, you'll spend less on the property itself, which means lower monthly mortgage payments. Additionally, you can transition to homeownership more quickly because a less expensive home loan amount means a more affordable down payment.
- Energy savings: We all want to stay warm in the winter and cool in the summer. We also like having lights to brighten up our homes in the evening, water heaters for hot showers and other perks powered by electricity. In a larger property, it takes more energy to keep all those appliances going, especially in regard to heating and cooling. Smaller homes have less space to warm or cool and require fewer lights to keep bright at night.
- Less consumption: In a big house, it can be tempting to purchase a lot of furniture and knickknacks so the property doesn't feel empty. Over time, these purchases can have a noticeable impact on your finances. In a compact home, you'll be looking for ways to reduce the number of your belongings, which can help you avoid frivolous spending.
- Easy maintenance: Even if the property inspection produces a clean report, you still have regular repairs to make as a homeowner. Smaller houses make maintenance more manageable, as you have less grass to cut, fewer rooms to dust and so forth. This saves on time and money spent on cleaning supplies and yard management.
- Cheaper taxes and insurance: Property taxes and homeowners insurance are two things potential home buyers often forget to consider when calculating if they can afford to move from renting to owning. Luckily, a tinier space can have lower payments for both of these expenses, depending on where it's located and other factors.