Why smaller homes can be the best homes

There is much to be said for downsizing or for choosing to go small when you buy your first home. Jawitz Properties takes a look at the advantages of buying small, including lower costs, greater saving potential and the general appeal of a lock-up-and-go lifestyle.

A lower cost of living

In a nutshell, living in a smaller property is almost always cheaper than living in a large, expansive home. For starters, you are likely to pay less to purchase your small home than you would for a larger home in the same area. Or, if you are renting, then your rent will be lower. Secondly, if you are responsible for rates and levies, these will be more affordable if your home is smaller. You're also likely to use less electricity, which is another saving. A final point to consider is that if you buy your small home for less than R1 000 000, you will not need to pay transfer duties on the transaction.

Greater saving potential

When combined, these lower expenditures can lead to significant saving potential every month. You can put this money into a tax-free savings account or unit trusts and ultimately have it become an investment in your future. If you are currently renting, this money that you save could become the deposit that you put down to buy your own home. Alternatively, you could put this money towards a second property investment or your retirement savings.

The ability to buy in a better area

Buying small could give you greater buying power. This, in turn, could mean that you're able to find a home in a nicer neighbourhood than you would be if you were looking for a more spacious home. Having great surroundings and close proximity to amenities can be more important than extra space. Small properties - especially those in inner-city areas - can be immensely popular, which guarantees you a good return on your investment when it's time to sell.

Excellent investment potential

For property investors looking for buy-to-let properties, a small property can be a great find. For starters, a small home typically means an apartment or sectional title property, which in turn means that exterior maintenance is often taken care of by the body corporate. One-bedroom apartments are typically easier to rent out if priced well, as they appeal to members of the younger generation who are living away from home for the first time and young professionals starting out their careers.

Less space, less clutter

In many large homes, there are cupboards and garages that get filled up with clutter. Not having this extra space forces you to stay organised and repurpose, recycle or get rid of things that you no longer need. Over and above this, the smaller the space you have, the less time you'll need to dedicate to keeping it clean!

The lock-up-and-go lifestyle

One of the biggest joys of living in a small home - particularly if it is within a block of apartments or a complex - is that there's so little to plan when you want to go on holiday. Living this way means that you often won't have a swimming pool or the worry of security in preparing to go away. It literally just means locking your front door and heading out.

Whether you are looking for a large family home or a smaller first-time home, we look forward to joining you on your property journey. Contact us today and let us assist with finding the property that's right for you.