Before looking at the benefits of buying a small house lets first check out, why people often like to buy a big house despite having a small family:
Having big house is a status symbol and to impress others
The property agent's false explanation and forced convincing
Mistaken thought that only a big house makes a dream home
The wrong impression that a builder offers big house at a discount over small one due to lower cost
Preconceptions that bigger is better
Many buyers' thinks that they have spare money so it's better to buy a big house as it will provide space for living and also fulfill the purpose of investing.
We have discussed the reason for buying a big house; now let's check the benefits of buying a small house so that we can come to an analytical conclusion.
Benefits of Buying a Small House
To Save Money
Obviously, the small house costs less than bigger one, so "to save money" is a genuine reason to buy a small house. It needs smaller amount of money to insure the house, less area means low energy requirement, so the electricity bill will be reduced and low maintenance costs.
To Be Stress Free
Small house takes off the stress of paying huge EMI and also less financial pressure on your budgeting. The loan amount can be paid early and the buyer can keep his financial book to be debt free. One can invest the money thus saved into other avenues for a better return or use it for other important work.
To Save Time
Less area means less time to clean and maintain the house. Small house makes everything seem to be kept in the easily accessible distance and hence it saves the time which otherwise required in the bigger house.
Helps to curtail shopping bill
Quite often unimportant things are given space in the home due to useless purchasing, but small house curtails waste spending because the resident understands the space limitations and hence buys only necessary things whenever goes to a shopping.
For Closer Family Tie up
It helps in developing a strong bond between the family members because everybody stays in a compact area and therefore it eliminates the communication gap between each other. The free interaction due to close living style helps in growing a happy feeling reducing the personal differences.
Good Resale value
Small house has a very good market and the rate of such property also appreciates steadily. Due to low price involvement, the owner enjoys the choice of changing the house very frequently.
Less area of construction means more space for the nature to grow, so a small house helps the environment and support the greenery.
Buying a house is a personal decision and it depends on numerous factors to finally select a house of one's own choice. If the family consists of up to four members, then a small house can provide a cozy feeling, sense of security and self contentment to the buyer. Bigger the better is not always true, so buyers should start focusing on a smaller house to live a life of own choice and payback property loans easily.
About the author:
Author is an MBA (Fin) graduate and a Financial Consultant. He has spent 10 years in Equity research, Stock broking and Financial Consultancy Sector. He can be reached at firstname.lastname@example.org