Smaller home, fewer vehicles, more disposable income.

[Southern Kross]

I've also seen the opposite work in a negative way. I've known people that a relatively poor, live in a shitty small house and fill it with all sorts of wide screen TVs and huge stereo systems. They also spend A LOT on drinking and gambling, then complain all the time they don't have any money. It really annoys me because they won't acknowledge that, to a degree, their poverty is a result of their choices.

 

[freeeekyyy]

A larger house than you need doesn't make much sense. I consider a nice car to be one part of the measure of "quality of life" though. It's not because of status either. A nice car offers a smooth ride, quick acceleration, quiet, comfortable interior and quality sound system. Considering how much time many americans (myself included) spend in their cars, it seems like a good car is an enjoyable thing to spend some income on.

 

[highlander]

I think people are sort of imprisoning themselves in their own massive investments.

You are exactly right. I have one of those houses and cars. I guess I can afford them pretty well but for many years it was a stretch and I don't think it's worth it to do.

At least on average houses don't go down in value (last couple years are an exception).

 

[freeeekyyy]

I've also seen the opposite work in a negative way. I've known people that a relatively poor, live in a shitty small house and fill it with all sorts of wide screen TVs and huge stereo systems. They also spend A LOT on drinking and gambling, then complain all the time they don't have any money. It really annoys me because they won't acknowledge that, to a degree, their poverty is a result of their choices.

Yeah, I think between the two extremes, that's probably worse. At least a house will make you some money, under normal economic conditions anyway.

 

[Rail Tracer]

A lot of empty space = not my thing. So, if you were to ask me what I would choose at this time, I would rather have a smaller home/big apartment than spend all that money in a big home in which I really don't need.

The only time living in a bigger home seems valid is if a family has actually started, or if the cost of houses are down (which they are... if you can get them.) But if you don't want to have to be tied to one place just yet, I don't see why buying a home right now is a good choice. Honestly, I lived in both an apartment and a house. As long as the place isn't ghetto, I wouldn't mind living in an apartment instead of a house.

But that is just me.

 

[syndatha]

We've recently moved to a much smaller house than before (about 100m2 smaller), but we plan to expand it by about 60m2 in the future. While I love the fact that it's less to take care of, we're currently 2 Es who are unhappy about not being able to invite 10+ people over anytime. We often have night guests, and ATM we don't have a dedicated guest bedroom. I would never have a bigger house than I actually need and use, that's just a waste IMO. If I lived alone (not likely) I definitely would do with a 50 - 80m2 appartment.

 

[ScorpioINTP]

I think people are missing out on a lot of indulgences in life this way. I think people are sort of imprisoning themselves in their own massive investments. The more I think about this, the better an idea it sounds like. The main question in it for me is if I can find an SO would be comfortable with it the way I am, or if I get stuck with someone who's into that whole big house, three car thing.

Also, how many people do you think have similar thoughts to mine? Am I actually pretty common, or really anomalous?

I am with you on this. I'm not even one of those people and I feel imprisoned by owning a house, furniture and other large things. My reply I typed up got vanished, so I am retyping a new reply..ughh. There were times I wanted to move to a new state, but was tied down with a house/stuff etc. and felt weight down.

After having bought a very old house this summer, I realized how expensive PA utilities are. It's cost $450/mo to heat and I still have to wear a jacket inside. That is more than double what I'm used to paying (but less than neighbors)....but some of that is having leaky windows/no insulation in places. Nonetheless, once we sell this house, I will be renting a smaller place and maybe eventually buy a smaller home, if I ever decide to do that again. There are homes around me that must cost well over $1000/mo to heat/cool!

Keeping up a home is a lot of work. I live around really big homes that must require a full time housekeeper and/or grounds crew, but they can probably afford it.
I think the ultra rich (top2%) buy giant homes, because its a long term value holder (like art and gold) and a tax write off (and some ego thrown in). Then there is the rest who live beyond their means, which makes no sense. Having 3 cars is nuts too. I've known people how make $90k/yr and can't get a company credit card because their credit is so bad or combined six fig incomes who live check to check. Its silly. I never made anywhere near that much money and have always lived below my means. I don't spend money on frivolous overpriced stuff (starbucks, $2 sodas, booze, cigs, clothes etc) or go out to fancy restaurants all the time. I go the the extreme when I grocery shop. I only buy things at "fair" prices and buy lots of them when on sale. If something isn't at my price point, I just don't buy it and get some other alternate product. People don't understand the power of the consumer and pay whatever price, because they can't say "no". These are they same people that drive up home prices and overpay (I'm simplifying, but it is part of the equation).

I never buy things I can't afford. I pay off my credit care every month and cash in the free points for cash a few times a year. I make less money than a lot of people, but I manage to save money still. I'd rather spend my money on travelling or fun splurges than buy bigger/better homes/cars/boats etc. or just work less. I've actually been selling off some of my lesser used toys, because I just don't need them anymore and I want to have less "stuff". The best things in life are free anyway.

 

[Lady_X]

people get things all confused when they're house shopping i think...they usually keep wanting the best they can possibly afford without really looking at what they'll be giving up by stretching their budget. my ex and i did that...we had an awesome house in a super cool neighborhood but...i couldn't get a latte whenever i felt like it...not that that is the most important thing but when you have to constantly watch your spending it does greatly lesson your overall enjoyment. sometimes it takes going through the experience to fully understand what your priorities are. i still want an awesome house in a neighborhood i love but have learned that i can be happy living with a lot less.

 

[FDG]

I generally agree with you Magic, although I can think about at least one exception. Certain houses are built in a beautifully scenic area (on the top of a hill overlooking the sea, near a beautiful lake with mountains as background, etc.), and I can understand paying a lot of money for their purchase.

 

[ceecee]

I think a lot of people go and get a mortgage and they say ok, you're approved to $200k. Great but that doesn't mean you have to buy a house that's $200k. We bought a small-ish house (3 br, 2 bath) and put an addition on. We made it just how we wanted and well within our comfort zone for a mortgage. My husband has a vehicle provided by work (Ford Fusion) and I have a SUV we paid cash for and used. Plus we have an older Chevy pickup we use often for home improvement purchases and large items and it comes in handy when we pull our boat out for the winter and put it in come summer. The boat is a luxury item, true but we live on a lake, all our kids waterski and wake board so it get's a lot of use. Otherwise we don't live beyond our means and save. This thread did make me think of the tiny house movement I keep reading about. There is something really attractive about it.

http://www.tumbleweedhouses.com/

 

[Mole]

Ensconced

At first I thought I would like to live on a desert island, for a long time I thought I would like to live on a desert island, but never did.

Then I thought I would like to live on campus, and I did.

Then I thought I would like to live in a park in a Canberra suburb, but instead I live in the centre of Canberra with all the amenities. Everyday I pass the window of a Real Estate Agent and I look in the window of all the rural properties marketed as 'escapes'. And I think at last I have nothing to escape from and have no need for desert islands, outer suburbs or rural escapes. I am ensconced at the heart of the nation.

 

[Octarine]

Considering how much time many americans (myself included) spend in their cars, it seems like a good car is an enjoyable thing to spend some income on.

But it is worth moving further out into the suburbs with a longer commute time, just so you can spend more quality time in a more expensive automobile?

 

[freeeekyyy]

But it is worth moving further out into the suburbs with a longer commute time, just so you can spend more quality time in a more expensive automobile?

No. It's usually the other way around, though. A lot of people don't like city life, so they either move out of the city or already live out of the city. Commutes are a necessity, not something enjoyable. But you might as well make the best of it...

 

[Chaotic Harmony]

I can't fathom living like that. Thankfully, my husband and I share the same mindset. We'd rather have nice things, that weren't over the top. We both have cars that get really good gas mileage.... We shopped around and found a decent sized home that had been on the market long enough that it was marked down to an amazing price for the neighborhood. We're in a $200,000 neighborhood, and paid $119,000 for our house... Thank you former owners for not updating anything! We have a three bedroom house, which fits our needs perfectly. We'll have one room for us, one for the baby, and then one with our office/exercise stuff. There are only two of us right now, and we only have two cars. We recently got rid of his car for a newer car so when the baby is here we've both got four-doors....he had a coupe before.

Most of the stuff we purchase is paid in cash. I recently completely paid off one of my credit cards, and I'm working on paying off the other one. I only have two, he has none. We both got rid of our gym memberships to save a little bit of money. We've got some exercise stuff at the house, and we can both use the fitness center at my work if we want more.

Most of my work experience was working for a financial company... So I monitor my budget, bills, and all that jazz pretty closely... And my husband was a marketing and finance major... So he's just as money conscience as I am.

 

[Rail Tracer]

This thread did make me think of the tiny house movement I keep reading about. There is something really attractive about it.

http://www.tumbleweedhouses.com/

That is a BIT TOO small for me

One living room/kitchen/dining room (enough space for a small couch, T.V., living room table, kitchen/dining room table and some general space to move about), one bathroom, and a bedroom... (enough space for clothes, a desk with a computer, a bed[depending on what size seems appropriate,] storage space. Living room, dining room, and kitchen would be in close proximity to each other) bare minimum. Which... really speaks out a small sized apartment. Not to forget, to not live in the middle of nowhere.

 

[rav3n]

I can't fathom living like that. Thankfully, my husband and I share the same mindset. We'd rather have nice things, that weren't over the top. We both have cars that get really good gas mileage.... We shopped around and found a decent sized home that had been on the market long enough that it was marked down to an amazing price for the neighborhood. We're in a $200,000 neighborhood, and paid $119,000 for our house... Thank you former owners for not updating anything! We have a three bedroom house, which fits our needs perfectly. We'll have one room for us, one for the baby, and then one with our office/exercise stuff. There are only two of us right now, and we only have two cars. We recently got rid of his car for a newer car so when the baby is here we've both got four-doors....he had a coupe before.

Most of the stuff we purchase is paid in cash. I recently completely paid off one of my credit cards, and I'm working on paying off the other one. I only have two, he has none. We both got rid of our gym memberships to save a little bit of money. We've got some exercise stuff at the house, and we can both use the fitness center at my work if we want more.

Most of my work experience was working for a financial company... So I monitor my budget, bills, and all that jazz pretty closely... And my husband was a marketing and finance major... So he's just as money conscience as I am.

I want to live in your city! There isn't a 3 bedroom house in my city in a decent neighborhood for under $600K. Living on the West side, you're looking at around $1M.

 

[lowtech redneck]

I actually like big houses, but I like entertainment more; I'd prefer disposable income if I had to choose between them. On the other hand, I get a lot of utility out of privacy (apartment walls are too thin) and big yards full of trees (living amongst steel and concrete would be too depressing for me), so I would pick a small house over an apartment any day.

 

[Chaotic Harmony]

I want to live in your city! There isn't a 3 bedroom house in my city in a decent neighborhood for under $600K. Living on the West side, you're looking at around $1M.

We're probably on a lot lower of a pay scale. A couple who makes about $65,000 combined income can survive here fairly comfortably. I imagine that's probably considered poverty in certain areas. And my 3-bedroom house is just over 1500 sq ft, not sure how big they would be out in your city.

 

[Magic Poriferan]

I actually like big houses, but I like entertainment more; I'd prefer disposable income if I had to choose between them. On the other hand, I get a lot of utility out of privacy (apartment walls are too thin) and big yards full of trees (living amongst steel and concrete would be too depressing for me), so I would pick a small house over an apartment any day.

My ideal would be to live in a tiny cottage, but that's much less likely to happen than the apartment thing.

 

[Giggly]

I am happiest with simplicity. My definition of simplicity, meaning comfortable but not excessive. Occasionally I'll admire lavish things from a far but I wouldn't actually want to have them. I admire them best from a far. Sort of like a Monet painting.... You may admire and appreciate one but would you really want to own one? Not really. That would be overload. I also know I'm different from the norm in that I just don't care about material possessions, fads, and keeping up with the Jonses like other people I know do. Perhaps I have ADD but owning lavish possessions lose their appeal to me after about a month or two unless they are extremely functional in a practical way in my life.

Not to mention that I'd go crazy with a lot of clutter. Being a collector has never appealed to me. I like feeling and being "lighter" than that and I definitely despise the idea of being a financial, mental or physical slave to material possessions or the Joneses.

However for some unknown reason, whenever I tell people (esp men) this, they don't believe me.