Looks like a new trend is steering away the American dream of homeownership.
If you are a downsizing retiree there is a trend to downsizing. But aside from saving money, there are other reasons that lead people to going smaller. Here are 5 reasons to move down:
A lower monthly payment
Cutting down expenses is considered one of the major reasons for downsizing as it equates to a lesser monthly payment. Mortgage "routinely accounts for 30% or more of gross income - often accounting for 50% of net income. Downsizing can have a dramatic and direct effect on expenses. At the very least, it can result in a significant reduction in your monthly expenditures and a significant increase in your free cash flow and massive savings in interest that is paid over the term of a mortgage.
Property tax savings
In an apartment in Raleigh, NC, you can get rid of your property tax bill altogether.
Savings on utilities
A smaller home takes less energy to heat and cool. Plus, newer appliances in apartment communities increase the efficiency, which means lower bills and less impact on the environment.
An apartment home means lesser space to maintain - that's lesser square footage to vacuum, lesser space for electronic appliances, basically lesser need to use electricity. As far as yard maintenance, there isn’t any, which could sum up to significant dollars in savings including in the monthly water bill.
A smaller home doesn't mean a less-fancy home
With a smaller space, you get to choose key pieces of furniture and art that have higher impact.
High-end luxury and style can be achieved in even smaller spaces. There is a plethora of do-it-yourself designers who offer-up unique ways to create a luxurious space despite small surroundings.