starting to think downsizing to a townhouse not worth it

[Anonymous]

Don’t forget your aging joints when contemplating your next house

[Anonymous]

OP this isn’t exactly what you were thinking of doing, but what if you sell your SFH, and then just move to Manhattan? Buy like a 2-bed 1-bath in a doorman building in Murray Hill or similar for the amount your house costs. Sell your cars and 80% of your furniture, declutter/Swedish death-cleaning, whatever you want to call it. You won’t be pocketing no half mil, but you are really and truly downsizing and switching to a totally different lifestyle. Not just like, moving over a neighborhood or two for no identifiable justification—just more stairs (“glorified stairwell,” per PP…ha!)and noise and less privacy.

[Anonymous]

Anonymous wrote:What are you looking for in your next dwelling? Location? Layout? I am older GenX with a townhouse in a good area and already I hate my stairs. My elderly parents can’t come visit because of the stairs, and even I see myself taking a tumble some day. I want something on one floor, with dedicated indoor parking, and no maintenance. Two bed two bath at a minimum. Walking distance to a grocery store and other amenities. Public transit nice to have. So I will probably go to a full-service condo in the next ten years.

My in laws in NJ bought into a townhome complex that is all 2BR and 3BR, with the 2BRs all ranch and the 3BRs have one 2nd floor BR and bathroom. So it’s good for guests, but the main dwellers don’t really have to venture to the 2nd floor much.

It’s funny because it’s almost what OP describes. They sold their main home for like $1.2MM and bought the 3BR TH for like $800k.

[Anonymous]

Keep your house, rent it out, and go rent a 2BR condo for a year or two. I bet you need a lot of less space than you imagine.

If you hate the condo life, then move back into your house which continues to appreciate. No big deal.

[Anonymous]

Anonymous wrote:I'm not in NYC or DC area, but we're in the same situation as OP. We can downsize but not down price/cost. THs and condos and 55+ neighborhoods all have association fees in addition to the price of the unit, which offset any savings for less lawncare, etc.

The only way we would do it is for location or less work and maintenance, not lower costs.

Association fees cover expenses like master structure insurance and reserves.

Our townhouse will get a new roof soon. We have a special assessment for $8,500 but that's probably half the cost of the full job. We also don't pay for exterior painting, driveway work, shingle repair, gutter cleaning, vent cleaning, and pest control.

So some of our fees do cover things that SFH owners would pay out of pocket.

I don't know that the fees are a great deal but I do think my TH may be cheaper than a somewhat bigger SFH I could have bought instead.

[Anonymous]

Other issue boomers can’t downsize as they need the big house as kids are not stepping up

I will be hosting thanks giving, Xmas, till my 80s

[Anonymous]

Anonymous wrote:

OP again. Yes, it's crazy. And it's keeping out young families who could really benefit from our spacious homes. Of course, with complaints about school crowding, maybe this is a blessing. But I feel for millennials right now.

Don't feel badly. Eventually people die or go to assisted care. Several houses have come up in our neighborhood for these reasons. I think a lot of older folks make the calculation that you made and realize that their next move will be one that is out of necessity (because the financials just don't work). "Downsizing was not a thing in my grandparents' day. I think it only came up as a "thing" in the last 25 years or so. My grandmother's house did not go on the market until after she died. Nobody judged her for that. But people do judge the boomers for doing the same thing. In fact I know someone who would like to downsize, but just plain can't find a smaller home in their area (because there aren't many that were built). She has given up.

+1. My parents, Greatest Gen and Silent Gen, stayed in their 5 bedroom 4 bath home until they died. My dad wanted to move to a luxe CCC but mom refused to give up her home to move into a one bedrm unit with him. My two single siblings never moved out. They have many neighbors that have done the same.

[Anonymous]

Anonymous wrote:Other issue boomers can’t downsize as they need the big house as kids are not stepping up

I will be hosting thanks giving, Xmas, till my 80s

You don't have to, you know.

--Boomer with big house that doesn't do it anymore.

[Anonymous]

I really wish developers would build more "right size" houses instead of the two options we have: poorly designed multi-family or big, dumb McMansions.

[Anonymous]

Anonymous wrote:I really wish developers would build more "right size" houses instead of the two options we have: poorly designed multi-family or big, dumb McMansions.

Is this true though? I live in Fairfax County and I've recently seen moderately sized homes being built. Not far from me there was a recent development with about 40 homes, all in the 3,500 square foot size range above grade on 1/8th acre lots. I don't think those are McMansions. 1,500 square foot houses don't really make much sense for most households, even for singles.

[Anonymous]

My son moved back to our area and it seems many of his school friends also have relocated to be near their family in their 30s. Unless capital gains tax on the sale primary residences is reduced or eliminated, it makes absolutely no financial sense to downsize. We even recruited a buyers agent to look for us but the homes would need more work than our current one. So I guess we'll stay put and remodel our first floor to accommodate a new primary suite or add an elevator when the stairs become difficult.

[Anonymous]

Anonymous wrote:My three bedroom, 2.5 bath, 2-car garage townhouse in a DC suburb has a walk score of 99, is a 5-minute walk from metro, and has tons of restaurants and four major grocery stores within a few blocks. I'll take that over a further out SFH anyday.

Your townhouse is the same size as a SFH. I'd downsize to that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Other issue boomers can’t downsize as they need the big house as kids are not stepping up

I will be hosting thanks giving, Xmas, till my 80s

You don't have to, you know.

--Boomer with big house that doesn't do it anymore.

who is doing it.

I went this week to a big wedding. The 32 year old daughter first of four kids to be married. The brunch day after wedding parents house. Like 100 people there. The wedding shower was there a few months ago. The parents do Easter, Thanksgiving there. All four kids live in a tiny apts in the city. Most have roomates.And where do you think Baby Showers, etc will happen. Parents have a 4,000 sf home with a 2,000 sf finished basement. In fact they only upsized 10 years ago and now everyone sleeps over. That wedding they had at least 15 people staying over. I myself had a tiny house 1,300 sf when kids little. I only upsized when my oldest was already 18. As crazy as it sounds you eed a much bigger house at 65 than 45 in todays world. My three kids 18-25 are all single and two oldest live in shoebox apts and dont own cars. Every holiday my house is full and everyone is staying over. I bet when spouses and grandkids come I can imagine holidays with 15-20 people staying over. I have 7 bedrooms and five bathrooms which I bet I will be using plus the sofas to sleep people on.

BTW I also own a 1,200 sf condo with two bedrooms I rent out as an investment last 13 years. We stayed over a few times when first got it and my wife was like I could never live it. At that time I had a 1,300 sf house so you think same size. But lack of garage or backyard or driveway made it feel tiny.

[Anonymous]

Anonymous wrote:My son moved back to our area and it seems many of his school friends also have relocated to be near their family in their 30s. Unless capital gains tax on the sale primary residences is reduced or eliminated, it makes absolutely no financial sense to downsize. We even recruited a buyers agent to look for us but the homes would need more work than our current one. So I guess we'll stay put and remodel our first floor to accommodate a new primary suite or add an elevator when the stairs become difficult.

Look my house I am only up around 500K if you count improvements so I could sell with no capital gains tax.
But here is my math. House now worth 1.9 million.
Realtor fee around $100,000
Closing costs around $25,000
Getting house ready to sell around $25,000
Moving with trucks etc around $10,000
Buying new place closing costs around $20,000
Minor things, decorating, buying new furniture small repairs, new house $20,000

So around $200,000 to move. However, if I do this at 70 avg life expectancy is 15 years or 85. Very long payback and also the smaller home will appreciate a lot less

[Anonymous]

I would only downsize to something without stairs