Making homeownership affordable again
Posted
Jan 31 2008, 04:58 PM
by
Karen Datko
Rating:
As an article at MSN Money points out, more middle-class people are finding that homeownership is beyond their financial reach. But a couple of personal-finance bloggers have offered ideas for making it more affordable.
Savvy Frugality says he agrees with parts of the article, but wonders: "Why not buy a home you can afford -- the proverbial 'starter home' -- or simply move to an area where housing is cheaper?" Stephanie at Stop The Ride offers 13 reasons why a smaller house is better. No. 1 is affordability.
Savvy says his in-laws in New York City have purchased an 1,800-square-foot house for $148,000 in Oklahoma City and will move there when they retire in a few years. "The cost of living is much, much cheaper than New York, which will help them stretch their retirement dollars," he writes. Savvy has already relocated from New York.
Stephanie's family of six lives in a 1,400-square-foot house. While she admits she needs more storage space, she says their next home will also be on the small side. A smaller house costs less to buy, heat and cool, furnish and decorate. She writes that she's also more inclined to keep down the clutter. Another of her reasons is "life lessons." She writes: "Sharing space may not always be fun for the kids -- or the parents who have to hear the arguments -- but I think there are lessons to be learned in those conflicts."
Finally, just for giggles, we offer the view of Contrarian Goldfish, who advises that even if you can afford a huge house, choose a modest home and buy a luxury car. Always the contrarian, that Goldfish. "Buying a quality luxury car that you can hold on to for a while in the end is cheaper than buying an average car that you replace every couple of years," Goldfish writes. "And it gives you a higher sense of satisfaction."
