Chicago Relocation

Pros and Cons of Down Sizing

December 19, 2008

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When it comes time to relocate to Chicago more often than not that means downsizing.  Unless you’re coming from a New York, Boston or San Francisco market, your money may go a bit farther in the place you’re leaving than the place you’re coming to.

Not that downsizing is all that bad.  As someone who pays for the guy to mow the lawn I seldom walk, and rake the leaves I see out my window, there’s an appeal in a smaller (or non-existent) lawn. According to Runzheimer International a family of four who downsizes in Chicago from 2800 SF to 1800 SF will yield approximately $1281 in utilities savings and $4,545 in property tax savings annually (that’s a total of over $5,800 ).  Well, there’s your IRA contribution!

In addition, as reports, smaller homes have shown a great annual appreciation (5.2%) than smaller homes (3.5%).

There are always two sides to every story.  Presumable you’re moving from a big suburban home to a city condo.  The flip side of that “quality of life” and minimal commute may be hundreds of dollars each month to park that seldom used car (and a jump in insurance costs to boot); or the addition of condo association fees.  But at as we read the reports from “black Friday” – consumers will buy enough to fill up any space they’re in….so isn’t it smart to see the advantages of a slightly smaller space?