Living In The Nicest Home You Can Afford Is Worth It

Living In The Nicest Home You Can Afford Is Worth It

 

One thing that I’ve learned since the pandemic is to appreciate life to the fullest. I recently decided to move back to my hometown in Illinois so I can be closer to family. After I graduated from college, I thought it would be good to venture out to different locations and live life to the fullest. Eight years later, and with a family, it was finally time to head back to the home roots.

When the pandemic wasn’t around, you and I probably spent more than 12 hours away from home daily. Ever since the pandemic and the social limitations that we endure, the time we spend at home is most likely more. It only made sense with the transition of moving back to my hometown that living in a nicer home that I could afford only made sense. If you are in the same position or you’ll be in the same situation soon, it may make sense for you too!

Moving back, I had some specific criteria that had to be met. I had discussed with my wife that I wanted a minimum 3 car garage and 4 bedrooms. I’m pretty simple, but it was hard to find a home in my hometown, a growing city. Even though I grit my teeth saying this, but this is my ‘forever home.’ Since this is my 3rd house and I’m also a licensed Realtor, I’m going to share with you some things I’ve learned along the way.

There’s a hidden window timeframe

If you’re single and not planning to have a family, living in a modest size home and creating a badass bachelor or single-lady pad can be done. However, if you are like me with a family, your time frame to own your forever dream home is roughly around 20-years. When the window shuts, it may be closed indefinitely.

My overall goal is not to have you buy something that you can not afford because you are trying to show off and catch up with the Jones. I want you to have the life that you always dreamed of in a responsible manner. I’ve met many people who have pool houses the size of my home for what reason? To show off to the neighbor, and they’ve forgotten they started from humble beginnings. That’s them, but let’s focus on you.

Get Your Forever Home When Your Wealth Increases

To have a stressful free wealthy life, the overall goal is to have your net worth grow faster than the value of your forever home. In theory, you are decreasing the value of your home compared to your overall net worth. As a result, you live a constant lifestyle or even yet better while increasing your wealth. For all the years I’ve been in real estate, I’ve seen many people continue to buy nicer homes as their net worth increases. In my opinion, it is reasonable if the same amount of people or more are planning to live in the new residence.

If your kids are planning to move out, whether for college, military, or just to move out, it doesn’t make any sense to get something bigger!

 

So When’s The Best Time?

The best time to own the nicest home you can afford is when your kids are still planning to live with you. If your kid(s) are planning to stay longer than expected, the window would be extended. Right after high school graduation, many attend a community college before venturing out to the university.

Once the window shuts and your net worth continues to climb, it doesn’t make sense to continue buying a larger home. Having a home with multiple unused rooms can feel a little weird and probably downright depressing. As the kid(s) leave home, it may make sense for you to transition to the next chapter of your life, which is to start downsizing. The ‘term’ downsizing can be interpreted in many ways, but for this article, it means reducing the size of your home. If you’ve paid off your mortgage and you’ve built sentimental value over the years, logically, it would be best to keep your home.

Strategy To Downsizing Without Selling Your Home

Besides blogging about personal finance, I’ve been a Realtor since 2017, and I love real estate. Real estate is the only asset you can sleep in and has the possibility for a value increase. If you have the financial means, instead of selling your home to downsize, you do have the choice of renting it out for another stream of cash flow. If you do this method periodically (every 5 years), you’ll have an excellent rental portfolio in a matter of no time.

It Was Time To Buy A New Home

I discussed with my wife about buying a nicer home with the minimum requirements of a 3 car garage and 4 bedrooms back in our hometown in Illinois. I got the stern look about moving because we were only in our home for not even 2-years in Missouri. When we moved from Tennessee to Missouri, it was a pain. I said to myself, ‘this house will be my forever home.’ Fast forward 2 years, I was ready to move back to my hometown in Illinois. Overall, we’re 10min away from direct family now, which is excellent if you have children.

Therefore, we weighed the pros and cons, and it made sense if we were going to move back to our hometown to invest in our ‘forever home. Plus, around 7 years old, children start to remember their childhood days. Now that we are in the nicest home we can afford, we’ll keep it until we are ready to downsize.

Buying the nicest home should be done as a strategy to optime spending on your primary residence when it makes sense. Purchasing a home to provide space for your family is when buying the nicest house method should be done. If you’re single, buying a house that is 5,000sq feet is not optimizing your spending. However, purchasing the nicest house that meets the demands of your lifestyle is what matters the most.