by Shawn Boday | Apr 7, 2025 | Business, Home Buying Process, Shawn Boday
Downsizing your home can feel like a big decision—and for good reason. Whether you’re an empty nester, looking to simplify your lifestyle, or seeking financial freedom, the idea of moving into a smaller space often comes with mixed emotions. While the benefits can be compelling, it’s not a one-size-fits-all solution. So, is a smaller home the right move for you? Let’s explore the pros and cons to help you decide.
Why People Downsize
People downsize for many reasons. Some want to reduce living expenses, while others are tired of maintaining a large property. Retirees often look for homes that require less upkeep, are closer to amenities, or better suit their changing physical needs. Younger homeowners may also downsize to save money, pay off debt, or embrace a more minimalist lifestyle.
The Benefits of Downsizing
1. Financial Freedom
Smaller homes typically mean smaller mortgages, lower utility bills, and reduced property taxes. Selling a larger home can also free up equity, giving you cash to invest, travel, or use for retirement.
2. Less Maintenance
A smaller home naturally requires less time and money to clean, repair, and maintain. This can be a huge relief for those who want to spend more time enjoying life and less time managing a property.
3. Simplified Living
Downsizing encourages decluttering and focusing on what really matters. Many people find that a smaller space leads to a less stressful, more organized lifestyle.
4. More Accessible Locations
Smaller homes or condos are often available in urban or walkable areas, making it easier to access shops, medical care, and entertainment—something especially important as we age.
The Challenges of Downsizing
1. Letting Go of Space (and Stuff)
One of the hardest parts of downsizing is parting with personal items and adjusting to less room. If you’re used to entertaining guests, having storage space, or just enjoying extra room, this shift can be emotionally and practically challenging.
2. Lifestyle Adjustments
If you’ve grown accustomed to a large home, sharing tighter quarters with family or losing a backyard can take some getting used to. It may require a change in how you live day-to-day.
3. Moving Stress
Selling your current home, finding a new one, and coordinating the move can be stressful. The process often involves tough decisions, paperwork, and costs—especially if you’re moving to a competitive market.
4. Limited Space for Guests or Hobbies
Downsizing can mean giving up that spare room for visitors, a home office, or space for hobbies. You’ll need to consider what you’re willing to sacrifice.
Is It the Right Move for You?
Start by evaluating your current needs and long-term goals. Are you looking to cut costs? Do you want to travel more or reduce daily responsibilities? Or are you emotionally attached to your current space and lifestyle?
A smaller home can lead to big rewards—financially, emotionally, and practically—but only if it aligns with your vision of the future. Take your time, weigh your options, and think about not just what you’re giving up, but what you might gain.
by Shawn Boday | Apr 7, 2025 | Business, House Flipping, Shawn Boday
Buying a fixer-upper can be an exciting challenge or a stressful money pit, depending on how well you prepare and what you’re looking to get out of it. These homes—typically priced below market value due to needed repairs or outdated features—attract buyers looking to build sweat equity, customize a space, or break into otherwise unaffordable neighborhoods. But is it really worth the investment? Let’s break down the pros and cons.
Pros of Buying a Fixer-Upper
1. Lower Purchase Price
One of the most appealing aspects of a fixer-upper is the lower upfront cost. Because these homes often need significant work, sellers price them below market value, making them more accessible to first-time buyers or investors looking to get more bang for their buck.
2. Customization Potential
With a fixer-upper, you have the freedom to design your dream home. From layout changes to finishes, you can tailor nearly every aspect to your taste—something that’s rarely possible with a move-in-ready property.
3. Increased Equity and Potential ROI
Renovating a home can significantly boost its market value. If you buy low and renovate smartly, you may end up with a home worth far more than what you paid and spent, creating instant equity or a higher resale price down the line.
4. Less Competition
Fixer-uppers tend to attract fewer buyers due to the perceived effort and risk involved. This can work in your favor during negotiations and help you avoid bidding wars common with turnkey properties.
Cons of Buying a Fixer-Upper
1. Unexpected Costs
Even with a detailed inspection, it’s nearly impossible to predict every issue lurking beneath the surface. Mold, plumbing problems, or outdated electrical systems can lead to costly surprises that quickly blow your budget.
2. Time and Effort
Renovations take time—often longer than expected—and can disrupt your life if you’re living in the home during the process. Coordinating contractors, managing timelines, and dealing with delays can become a full-time job.
3. Financing Challenges
Not all lenders are eager to finance fixer-uppers, especially if the home is in poor condition. You may need a renovation loan, which can be more complicated to secure and come with stricter requirements.
4. Permit and Code Compliance Issues
Older homes may require upgrades to meet current building codes, and pulling permits for extensive work can slow progress. Skipping this step risks fines and complications if you try to sell later.
Is It Worth It?
Buying a fixer-upper can absolutely be worth it—but only if you go in with eyes wide open. Do your homework, get a thorough inspection, and consult with a contractor to estimate renovation costs accurately. Consider your timeline, your tolerance for stress, and your ability to manage a renovation project. For some, the payoff in equity and customization is more than worth the hassle. For others, a move-in-ready home may be the wiser choice.
In the end, the decision comes down to your goals, your budget, and your willingness to roll up your sleeves.
by Shawn Boday | Mar 5, 2025 | Real Estate, Shawn Boday, snowboarding
Buying a home is a major financial milestone, but many buyers focus solely on the down payment and mortgage without considering the hidden costs of homeownership. These additional expenses can add up quickly and impact your long-term financial stability. Understanding these costs before making a purchase can help you make a more informed decision and avoid unexpected financial strain.
1. Property Taxes
One of the biggest ongoing expenses for homeowners is property taxes. The amount you pay depends on the assessed value of your home and local tax rates, which can vary significantly by location. Property taxes can increase over time, particularly in rapidly developing areas, so it’s crucial to budget for potential hikes.
2. Homeowners Insurance
Lenders require homeowners insurance, but even if it’s not mandatory, it’s a necessity to protect your investment. Insurance costs depend on factors like the home’s location, size, and construction, as well as the likelihood of natural disasters. Premiums can rise annually, so it’s important to factor this into your long-term budget.
3. Maintenance and Repairs
Owning a home means being responsible for all maintenance and repairs. From routine upkeep like lawn care and gutter cleaning to unexpected repairs like plumbing issues or a new roof, these costs can be unpredictable. A common rule of thumb is to set aside 1-3% of your home’s value each year for maintenance and repairs.
4. HOA Fees
If you buy a home in a community with a homeowners association (HOA), you’ll likely have monthly or annual fees. These fees cover services like landscaping, security, and community amenities but can vary widely depending on the neighborhood. Some HOAs also require special assessments for major repairs, adding an additional financial burden.
5. Utility Bills
Many first-time buyers underestimate the cost of utilities, which typically include electricity, water, gas, trash collection, and internet services. Larger homes generally have higher utility costs, and older homes may be less energy-efficient, leading to steeper monthly bills.
6. Closing Costs
Beyond the down payment, buyers must also budget for closing costs, which typically range from 2-5% of the home’s purchase price. These costs include loan origination fees, title insurance, escrow fees, and more. Many buyers overlook this expense when planning their finances.
7. Furnishing and Renovations
Moving into a new home often requires additional spending on furniture, appliances, and potential renovations. Even minor upgrades, such as painting or replacing flooring, can add thousands of dollars to your total cost.
Conclusion
Homeownership is a rewarding investment, but it comes with many hidden costs beyond the mortgage payment. By preparing for property taxes, insurance, maintenance, HOA fees, utilities, closing costs, and unexpected repairs, buyers can make smarter financial decisions and avoid costly surprises. Taking the time to understand these expenses ensures a smoother and more financially secure transition into homeownership.
by Shawn Boday | Mar 5, 2025 | Real Estate, Shawn Boday, snowboarding
In recent years, co-living spaces have emerged as a dynamic solution to the challenges of urban housing. With rising rent prices, increasing urbanization, and shifting lifestyle preferences, shared housing is gaining traction among young professionals, digital nomads, and even retirees. This modern take on communal living is reshaping urban real estate, offering affordability, convenience, and a sense of community.
What Are Co-Living Spaces?
Co-living is a form of shared housing where residents have private bedrooms but share common areas like kitchens, lounges, and workspaces. Unlike traditional roommate arrangements, co-living spaces are professionally managed, often providing amenities such as cleaning services, utilities, and social events, making them a hassle-free housing option.
Why Co-Living is Gaining Popularity
Several factors contribute to the growing appeal of co-living spaces:
- Affordability: With rent prices skyrocketing in major cities, co-living offers a cost-effective alternative. Residents pay a single, all-inclusive fee covering rent, utilities, Wi-Fi, and other perks.
- Flexibility: Unlike traditional leases, co-living spaces often come with short-term rental options, catering to digital nomads, remote workers, and those who relocate frequently.
- Built-in Community: Loneliness is a major issue in urban settings. Co-living fosters social interactions through shared spaces and organized events, creating a sense of belonging.
- Convenience: Many co-living spaces come fully furnished with modern amenities, eliminating the hassle of setting up utilities or purchasing furniture.
The Impact on Urban Real Estate
The rise of co-living is influencing the real estate market in several ways:
- Increased Demand for Shared Housing Developments: Developers are recognizing the demand for co-living and are investing in purpose-built spaces that cater to this growing trend.
- Repurposing of Existing Properties: Older apartment buildings, hotels, and office spaces are being converted into co-living hubs, maximizing urban space efficiency.
- Shifts in Rental Market Dynamics: As co-living becomes more prevalent, traditional rental markets may need to adapt by offering more flexible lease terms and additional amenities to remain competitive.
- Appeal to Investors: Co-living spaces often generate higher rental yields due to their shared nature, making them attractive investments in high-demand urban areas.
The Future of Co-Living
As urbanization continues, co-living is likely to expand, offering more tailored experiences. Some emerging trends include:
- Niche Co-Living Spaces: Designed for specific demographics like artists, entrepreneurs, or wellness-focused individuals.
- Tech-Integrated Living: Smart home features and digital platforms to enhance resident experiences.
- Sustainability Initiatives: Eco-friendly designs, energy-efficient buildings, and sustainable living practices.
Conclusion
Co-living is more than just a housing trend; it represents a shift in how people approach urban living. By prioritizing affordability, flexibility, and community, shared housing is reshaping urban real estate and providing innovative solutions to modern housing challenges. As cities continue to evolve, co-living is poised to play a significant role in the future of urban development.
by Shawn Boday | Feb 4, 2025 | Real Estate, Real Estate Tips, Shawn Boday
The tiny home movement has gained significant traction over the past decade, with many people opting for smaller, minimalist living spaces in exchange for financial freedom and sustainability. But is investing in a tiny home a wise financial decision, or is it just another passing trend?
What is the Tiny Home Movement?
The tiny home movement is centered around downsizing and simplifying one’s lifestyle. Typically ranging from 100 to 400 square feet, these homes are designed to maximize efficiency and minimize costs. Whether built on a permanent foundation or a trailer for mobility, tiny homes appeal to those looking to break free from high mortgages, reduce their carbon footprint, or embrace a more minimalist lifestyle.
Financial Benefits of Tiny Homes
One of the biggest selling points of tiny homes is affordability. Traditional homes come with hefty price tags, but tiny homes can cost anywhere from $30,000 to $100,000, depending on materials and design. This makes homeownership more accessible, especially for young professionals, retirees, and those seeking financial independence.
Other financial advantages include:
- Lower Utility Costs: With a smaller space, heating, cooling, and electricity costs are significantly lower.
- Minimal Maintenance Expenses: Less space means fewer repairs and lower maintenance costs.
- Reduced Property Taxes: Many tiny homes are classified as RVs or personal property, resulting in lower or no property tax obligations.
Challenges of Tiny Home Living
Despite the financial perks, tiny homes come with challenges that potential buyers should consider:
- Zoning and Legal Restrictions: Many cities have zoning laws that prohibit tiny homes or require them to be placed in designated communities.
- Resale Value: Unlike traditional homes, tiny homes often depreciate over time, making them a less attractive long-term investment.
- Limited Space: While minimalism is a key appeal, living in a tiny home requires significant lifestyle adjustments.
Is It a Smart Investment?
Tiny homes can be a smart investment depending on individual goals. If the primary objective is to save money, reduce living expenses, or enjoy a mobile lifestyle, a tiny home can be a great financial decision. However, if you’re looking for long-term appreciation, tiny homes may not offer the same return on investment as traditional real estate.
For those who are unsure about long-term commitment, renting a tiny home or investing in one as a vacation rental could be a lucrative alternative. The short-term rental market for unique stays is growing, and tiny homes often attract travelers seeking a one-of-a-kind experience.
Conclusion
The tiny home movement is more than just a passing trend—it’s a lifestyle choice that offers financial and environmental benefits. However, whether it’s a smart investment depends on individual priorities. If saving money and embracing minimalism are key goals, a tiny home may be the perfect fit. But for those seeking long-term property appreciation, traditional real estate might be the better choice.
Would you consider investing in a tiny home, or do you think it’s just a fad? Let us know your thoughts!
