Downsizing

[ChefGirl]

Can you downsize from a 4 bedrooms and 3.5 bathroom almost 4,000 sq. ft house to a 2,500 sq ft with 3 bedrooms and 2.5 bathrooms house?

I'm trying to cut down on our spendings and trying to be more financial prudent. My son will be attending private school for the next 12 years (if they don't kick him out). I can't cut the tuition, day care expense and the after-school enrichment activities for the kids. So the next big item to cut is the spending related to the house. We have no mortgage but the property tax is about 2% of our property appraisal value. I also plan to cut back on my hours in a year. So, the only big spending to cut is the house property tax on an annual basis. The house we are considering downsizing is in a good neighborhood but directly across from an elementary school, which my daughter can attend if she doesn't test into any private schools.

So, here is the question, can 2 adults and 3 kids (6, 4, and 15 months; boy, girl, and boy) live in a 3 bedrooms and 2.5 bathrooms 2,500 sq ft house? It practically has no backyard. But, it's across from the school so there is a playground there. And the neighborhood has a community pool and club house. The annual HOA is lower than our current dues.

I appreciate hearing everyone's opinions.

ETA: Let me put this into perspective, our current home is valuded around $1.2 million and we are thinking about downsizing to a $650K+ home. So, if you do the math, that's roughly saving of $10,000 to $12,000 a year. Yes, most likily my 2 boys will end up in private. My daughter may end up in public depending on how well he does on her testing. We are also thinking of pulling her back a year. We built our current home and weren't being smart about it so no, we won't get ALL of our money back. My husband is self-employed. I'm hoping whatever I can' recoup from our current house, we'll get a deal on the next house and offset it. I don't know. It's a constant struggle.

[WatchingThemGrow]

I sure hope so, because within the month (yay!) we'll be 2 adults and 3 DC (3, 1.5, and newborn) living in a 1400 sq. ft. home. Granted, we do have a fun (smallish) backyard, but that doesn't make up for the extra 1100 sq. feet more you'll have. Granted, we're on the opposite end of the spectrum, space-wise. Our next move, when we crash into one another in the hallways, will be to a house similar to what you're describing.

[kransden]

The answer is of course you can, but will you get your money out of selling the house at this time?

[wellyes]

On the one hand, 2500 square feet sounds like a mansion! Wow. I can't even imagine owning enough furniture to fill a 4000 square foot home.

But it does depend on layout. In my world of 1200-1600 sq ft Cape Cods, 3 bedrooms doesn't usually mean 3 bedrooms. There are typically 2 bedrooms upstairs and 4 rooms downstairs..... kitchen, dining, family room, and the "third bedroom". Almost everyone turns that room into an office or playroom. So, in my neighborhood, I would not try to squeeze a family with 3 kids into a 3 bedroom. But of course it may be very different in your neighborhood.

[almostamom]

We are 2 adults and 1 child living in 2700 sq ft. We could easily fit 2 more children in this house, but we would have to change a few things (fewer toys, no guest room). The biggest concern I would have is the backyard. We have a park within a 2 minute walk from our house, but I would rather my son play in our backyard. It's not huge by any means, but we have a small swingset, extended patio for bike riding, and a small pool. Personally, the small/no yard would be a deal breaker for me.

Linda

[infomama]

I agree with pp..the small yard would be a deal breaker for us. The size of the house would be just fine, though.

[Happy 2B mommy]

The space of the house is definitely workable (our living space is app 1400 sq ft 3 bed, 2 bath, but we also have a full, unfinished basement for storage) What do you mean by "no backyard" ? That would be the deciding factor for me. Our backyard is pretty small compared to what I grew up with (2 acres) But the backyard is big enough for a swingset (2 swings, space for a baby swing or hand rings and a slide) a step2 sandbox and DD's step2 roller coaster. The lot the house is on is 120 X 90 (wider than it is deep). With a school playground right across the street, you don't need anything too elaborate.

[mariza]

The space is fine, we are 2 adults 2 kids living in 1400 sq feet, but my yard is large and fenced in. I love that I can let the kids and the dog out there and stay in the kitchen and supervise via window while cooking supper. No yard would be a big deal breaker for me.

[Momof3Labs]

After this summer, we'll be 2 adults, 4 kids and 2 dogs in 3br, 2.5ba, appx 2600sf. But we have a decent-sized fenced-in backyard.

I know that you posted on this before, but you really need to look at the up-front costs of moving and figure out how long it will take you to recoup that based on your property tax and HOA dues savings. I just have a hard time imagining that it will be enough of a savings to make a big move right now, but you have to look at your budget both ways and make that determination yourself. We can't tell you the answer.

Keep in mind that your day care expenses may end (or will drastically reduce to after-school care costs) when all your kids are in school. Will they all go private, or just the oldest?

[JBaxter]

I have 4 kids and a dog in a 3500 ( or 3800 I cant remember exactly) and there is NO WAY if I had a choice would I down size. When you have teenagers you need them to have more space. It would be a different story if you didnt have a choice but all 4 of the boys have their own room and its so nice. my 17yr old and 14 yr old are very different people and have different interests and it works out much better for them to have their own rooms. < and no one wants to share with the 5 yr old LOL>

You will have to put your now 6yr old and 15 month old in the same room.

Im talking from an older child aspect but I have one working on AP Bio and one practicing guitar ( one playing legos and one trying to crawl)

[WatchingThemGrow]

Im talking from an older child aspect but I have one working on AP Bio and one practicing guitar ( one playing legos and one trying to crawl)

I love this perspective!:ROTFLMAO:

[AJP]

I think it would be doable if the layout of the home is right for your family. I could have 15 rooms and 5000 sq feet, but if I didn't have the open layout I prefer, the home might still feel "small" to me. I don't mean small size wise, but "space" wise. 2500 sq ft with a lot of closed off rooms is a lot smaller to me than 2500 with open living areas. It would have to depend on how you all live as a family. 2 of your children would have to share a bedroom right? Would you put your 2 boys (oldest & youngest) together? That may be a problem as they get a little older and the age difference causes problems in the way they share their space. Oh, and everyone's idea of no backyard is different. Would there be enough room for your kids to play back there on a swingset for instance? It may be nice to have them able to play at home where you could watch them instead of going to the park all the time. Would you sell your existing home for enough to make the move worth it? I personally wouldn't want to sell my home at a loss right now if I didn't HAVE to. And, we have enough equity that we could very comfortably downsize. Then again I have nightmares of when my girls start school, b/c I'd love to send them to private which is big bucks around here.

[JBaxter]

OH and another thing.... Showers / bathrooms with teens( older children that shower in the mornings) and adults getting ready in the mornings. I would NOT EVER give up our extra shower its like a relay in the mornings here. DH showers. wakes DS2 showers I hear the shower turn off DS1 showers. We have the luxery of having 3 full baths and 2 - 1/2 baths. ( Master, main upstairs and DS1 has a 3/4 in his room in the basement). No one "waits" for their turn it just flows.

We could do it but why if you dong "have" to?

[KpbS]

I think you definitely can live w/ that size house but I would talk to a realtor first before selling. How is the housing market where you are? Is your home typical in price to those in your area? Are other houses in your price range moving?

If the potential house literally had no yard I wouldn't like that but if it had a yard that was on the small side of things I would say go for it. Or keep looking for houses in that same neighborhood/price range.

GL

[daniele_ut]

Well, since my parents, 2 sisters and I all lived in a 1000 sf 4 bedroom city apartment for over 20 years, I would say that 2800sf would be fine for a family of 5. However, if I were in your situation, and it would save only $10,000 a year, I wouldn't do it. It would take you several years to recover the costs of selling and moving.

[dogmom]

The quick answer is, of course it is doable since 15 people can live in one room and do.

That's bigger than my house, with only 2 kids, but 2 dogs, and sometimes I wish I had LESS room, not more. As a pp said, it's the layout. Also, less room means less stuff to fill it up with, which usually = less $, less time, better choices in stuff. A small yard can be a problem or a blessing if it means less yard work. If there are nice parks and etc around, you don't need a big yard. It also will save you a lot in utilities. Also less space = less time cleaning. I could NEVER imagine living in the size of house you have, it would drive me crazy, but I am older than most of the people here and no one when I was growing up had a house over 2000 sf, 1500 was huge.

A word about layout, look for a home with smaller bedrooms and bigger living spaces, keeps the kids in the common areas.

[hellokitty]

I think the house space is doable. I'm not sure what you mean by the, "no yard" comment. We live in a house that's probably about 2500-2700 sq ft, 2 adults, a dog, two kids and another baby on the way and I feel that this size house is just right for us... any bigger than this and I would really have a difficult time trying to keep it clean, I have a hard enough time NOW keeping the house clean. However, it is a four bdrm house. So, each child will have his own bdrm, but we won't have a guest room anymore (not a big deal, since nobody wants to visit us anyway, we don't live somewhere, "fun" and we can always have two boys sleep in the same room and make one a guest room if we need one in a crunch). Our yard is a decent size, about 2/3 an acre, and maybe it's b/c my kids are still younger, but they don't use THAT much of the yard. They like to play on the driveway and we have a pea gravel area with the swing set in the backyard, but the rest of the grassy part of the yard is pretty wet for the majority of the yr, so my kids don't really play on it that much.

Maybe I am weird, but I would never want to live across from a school. It just seems like it would be a noisy place to live and with all the traffic, and after school activities (concerts, plays, etc.) that would drive me nuts. So, if I were in your situation, I would be more concerned about the location of the house across the st from the school, more than anything...

[ha98ed14]

I think the answer to your question is, "Can you adjust your expectations, lifestyle or living habits?" Because really, what is and is not possible is a function of what you expect or *think* you must have. You do what you must do to make life work, although it does not sound like you are in a desperate situation like staving off forclosure.

We were house hunting and have seen a ton of houses, some in very nice neighborhoods where people are living 3 or 4 familes to a house (every family has a room). This is Orange County, CA, so we are not talking the 3rd world. On the days I saw those houses, I came home grateful for my 1000 sq foot apartment I had to share with only DH and DD. So it is all about perspective.

[sste]

OK, I am completely confused! Please don't take this the wrong way, but in the context of owning a 1.2 million dollar house and sending 2-3 kids to private school, saving 10k per year in property taxes should fall in the category of "chump change." Especially if you think you will lose money on the sale and won't have equity to carry over and fund the private schooling???

If you really want a move to be a money-saving venture my vote would be to move to an elite school district, as in one of the top school districts nationally, send all 3 kids to public school and downsize the house. Not sure if this is possible for you based on where you live . . .

Maybe you can tell us more about where you live (near metro, rural, etc. school districts) and whether there is going to be equity left over after you buy the 650k house . . .

[vludmilla]

OK, I am completely confused! Please don't take this the wrong way, but in the context of owning a 1.2 million dollar house and sending 2-3 kids to private school, saving 10k per year in property taxes should fall in the category of "chump change." Especially if you think you will lose money on the sale and won't have equity to carry over and fund the private schooling???

If you really want a move to be a money-saving venture my vote would be to move to an elite school district, as in one of the top school districts nationally, send all 3 kids to public school and downsize the house. Not sure if this is possible for you based on where you live . . .

Maybe you can tell us more about where you live (near metro, rural, etc. school districts) and whether there is going to be equity left over after you buy the 650k house . . .

Pretty much my thoughts exactly.

[Laurel]

It sounds like you have already picked a new house to buy? So would you buy that house and then sell your current home? In this market, that sounds like a way to potentially lose thousands.

Honestly, if I was in your position, I'd find other ways to save 10k a year. Can you get by with one vehicle? Cut vacations?

[KrisM]

OK, I am completely confused! Please don't take this the wrong way, but in the context of owning a 1.2 million dollar house and sending 2-3 kids to private school, saving 10k per year in property taxes should fall in the category of "chump change." Especially if you think you will lose money on the sale and won't have equity to carry over and fund the private schooling???

If you really want a move to be a money-saving venture my vote would be to move to an elite school district, as in one of the top school districts nationally, send all 3 kids to public school and downsize the house. Not sure if this is possible for you based on where you live . . .

Maybe you can tell us more about where you live (near metro, rural, etc. school districts) and whether there is going to be equity left over after you buy the 650k house . . .

I agree with this.

If you have no loans on the house and you sell it for $1.2M and buy a new house for $650k, won't that give you $550k minus realtor fees? You'll have a ton of money from the equity of the house.

As far as downsizing, it is certainly liveable in that size of house. We have 5 of us in 2200 sq ft with 4 bedrooms and 2.5 baths. We do have a 2 car garage and a basement. We fit just fine, really, and have no plans to get anything bigger. But, I am sure we would have trouble downsizing to a 1400 sq ft house, like others here have. You get used to the space and rooms, etc.

[JBaxter]

You would also get hit wicked on taxes.

[LBW]

If you had your property reappraised, would its value be the same or less? If it's less, can you have your taxes adjusted?

[pinkmomagain]

OK, I am completely confused! Please don't take this the wrong way, but in the context of owning a 1.2 million dollar house and sending 2-3 kids to private school, saving 10k per year in property taxes should fall in the category of "chump change." Especially if you think you will lose money on the sale and won't have equity to carry over and fund the private schooling???

If you really want a move to be a money-saving venture my vote would be to move to an elite school district, as in one of the top school districts nationally, send all 3 kids to public school and downsize the house. Not sure if this is possible for you based on where you live . . .

Maybe you can tell us more about where you live (near metro, rural, etc. school districts) and whether there is going to be equity left over after you buy the 650k house . . .

Yes, I agree with this.

[KrisM]

You would also get hit wicked on taxes.

Won't that depend on what they paid for it? If they bought it for $1M and sell it for $1.2M, they'll be within the "free" amount you can get with no taxes. I'm stretching my memory, but I thought it was $250k/person, so $500k/couple.

[vludmilla]

Won't that depend on what they paid for it? If they bought it for $1M and sell it for $1.2M, they'll be within the "free" amount you can get with no taxes. I'm stretching my memory, but I thought it was $250k/person, so $500k/couple.

I believe she said they built it themselves so I don't know how that rule works? Does it apply to the cost to build the house in the same way it applies to cost to purchase?

[KrisM]

I believe she said they built it themselves so I don't know how that rule works? Does it apply to the cost to build the house in the same way it applies to cost to purchase?

I guess I took that to mean it was a new construction and other people did the actual building, rather than they bought wood and hammered it together themselves.

[kozachka]

I think you need to do a relatively simple cost-benefit analysis. See how much you would save by moving to a cheaper house. From what I understand the bulk of your savings would come from RE tax and would be at the most $11K per year, or (1.2M-0.65M)*2%. In reality, you savings would be even less since you can have your RE taxes lowered since your house if currently worth less than 1.2M that it's appraised for. It would cost you ~$50K to sell the house if it's in pristine condition. And lots of pain. You could also end up losing money so even higher cost. Also in some areas prices are beginning to recover (although not >$1M houses) so you could end up selling your house cheap and buying your next property expensive. My gut feeling is that it's not worth it.

Send your kid to public school. And save $$$ this way. Re-evaluate couple years from now when housing market hopefully recovers.

[ChefGirl]

I guess I took that to mean it was a new construction and other people did the actual building, rather than they bought wood and hammered it together themselves.

More details to come.....yes, we bought an old house in an excellent "elementary" school district. We were going to renovate it but decided to tear it down and rebuild. So the cost of the land and construction was about $1.2. Does any one know about the tax rule on rebuilds? I just assumed that the $500K gain rule applies here.

Yes, to other previous posts, I would have about $500 left over if we decide to downsize. We plan to use that $$ for investment and wait for the perfect lot in this one particular neighborhood again. The $650K home is located in an excellent "elementary" school district too. We are willing to downsize for the neighborhood. The house is what you would describe it as the cheapest house in the best neighborhood. It does have an open floor plan. We actually really like the floor plan. We have already decided that the kids will go to private school if they test in. I know, saving $10,000 a year on expenses seems silly, ain't it? I just don't know what else to cut...besides, DH is self-employed. He sometimes draws a salary, and sometimes doesn't due to cash flow. If I decide to cut back on my hours in a year...yikes....I figure it's a buyer's market right now so if I lose $$ on selling and hoping to make it up on the buying side.....I just don't know we will ever get 100% of our money back in a good market anyway.....our builder was a bit too expensive...live and learn.

[kozachka]

DH is also self-employed so I now where you are coming from as far as cash-flow is concerned. BUT right now might not be the time to cut your hours or trade properties. It seems to me like the reason why you are thinking of moving is the fact that your older DS might start private school soon. What if he does not? And if he does, you can probably borrow some cash against the house. Moving is expensive in more ways than one. It can certainly be done (we moved from a 3800 sq ft house to 900 sw ft apartment) but it might not make sense financially.

Talk your accountant or advisor if you don't know how to run the numbers yourself. If you want to give it a try, put the list of costs vs. list of benefits on the other and see what you come up with. Chances are it will take you years and years to justify the move.

[neeleymartin]

yes.

i grew up in a 1000 square footer, with 3bdrms and 1 bath. there were five kids and two adults. schedule was everything for shared bathroom.

sharing a small space is something i HATED then, esp. as a teenager, but have such memories of now.

it's all i have ever known, but i am sure you will adjust.

[ChefGirl]

DH is also self-employed so I now where you are coming from as far as cash-flow is concerned. BUT right now might not be the time to cut your hours or trade properties. It seems to me like the reason why you are thinking of moving is the fact that your older DS might start private school soon. What if he does not? And if he does, you can probably borrow some cash against the house. Moving is expensive in more ways than one. It can certainly be done (we moved from a 3800 sq ft house to 900 sw ft apartment) but it might not make sense financially.

Talk your accountant or advisor if you don't know how to run the numbers yourself. If you want to give it a try, put the list of costs vs. list of benefits on the other and see what you come up with. Chances are it will take you years and years to justify the move.

I plan to cut back on my hours in a year or so when DD starts Kindergarten. It's a constant struggle iwht their after-school activities these days. DH and I both have full schedule. In order for him to concentrate on his business, he needs to put in the time versus chauffering the kids around....it's a life and work balance.

The smaller house has no grass in the backyard. It has a nice patio in the back and nice front yard. The secondary bedrooms about 23 x 12 each. One room acutally used to be two rooms but they left it open as one side is for sleeping and the other for playing. It has a dining, living, den/family/game, kitchen, breakfast, master bedrrom/bathroom, 2 secondary bedrooms with one shared bath. Downstairs has a half bathroom too. I guess I sort of fell in love with it. Can't you tell? It's in a neighborhood that we really want to get into.... nobdy ever leaves in this neighborhood. They are always move around from one street to the other.... oh well....

[Momof3Labs]

So really, the basic problem is that you don't have liquidity. You have all your money tied up in the house (paid off), but need the cash flow to cover your expenses for property taxes, private school, and other living expenses. Have you looked into tapping into the equity in your existing home? I'd consider this route first, and use that money to set up an emergency fund (9 months to a year) and then draw off the remainder as needed to pay off the loan and other expenses in months when you have a shortfall.

Is the value of your current home based on a recent appraisal, or based on what you paid for it (and thus overstated - perhaps by a lot)?

[KBecks]

I'll throw in my experience that expensive private schools can be a challenge. We started DS1 in a private preschool that we can afford, but not comfortably. It's a lot of money.

The school had a 13% tuition increase this year and we had DS#3. It's just too much, we could swing it but decided it wasn't worth it, especially with the economy slowing down. I struggled over the decision but now feel very happy with our choice -- my husband's commissions are not going to be as good this year, things are slowing down, and we have a fine neighborhood preschool that will meet our needs.

Given our experience, I would suggest taking another look at the expensive school and some less expensive education options to give you financial flexibility and peace of mind.

I don't quite understand why you believe your daughter won't test in but the boys will, I hate to think of that as a self-fulfilling prophecy kind of thing. I blissfully assume all my kids are bright and wonderful and will be successful! :)

[ChefGirl]

So really, the basic problem is that you don't have liquidity. You have all your money tied up in the house (paid off), but need the cash flow to cover your expenses for property taxes, private school, and other living expenses. Have you looked into tapping into the equity in your existing home? I'd consider this route first, and use that money to set up an emergency fund (9 months to a year) and then draw off the remainder as needed to pay off the loan and other expenses in months when you have a shortfall.

Is the value of your current home based on a recent appraisal, or based on what you paid for it (and thus overstated - perhaps by a lot)?

We actually already have an emergency fund. We are not hurting from a liquidity stand point right now. It's just that we are trying to get into this neighborhood. We eventually want to build our dream house again. But, you need cash on hand to get the lot that you wanted. I was talking to DH about is it worth it to take a loss for an annual saving of $10K. But, he said that we are really looking for a different way of living for the kids in this particular neighborhood. It's more of a neighborhood for children to grow up in....if that makes any sense...so we are really getting into it by downsizing into a smaller home and hoping eventually can get into a bigger home in that neighborhood. I don't know if that makes sense. Hey, maybe I will hit a lotto tonight. :-)

[strollerqueen]

Yeah, it sounds to me like that is what you really want to do, and you just need encouragement. The 10-grand is a way to justify it. But you don't have to justify it. It's your life, and your choices (and your family's, of course), and you can do whatever you wish. I say, follow your heart.

[o_mom]

We actually already have an emergency fund. We are not hurting from a liquidity stand point right now. It's just that we are trying to get into this neighborhood. We eventually want to build our dream house again. But, you need cash on hand to get the lot that you wanted. I was talking to DH about is it worth it to take a loss for an annual saving of $10K. But, he said that we are really looking for a different way of living for the kids in this particular neighborhood. It's more of a neighborhood for children to grow up in....if that makes any sense...so we are really getting into it by downsizing into a smaller home and hoping eventually can get into a bigger home in that neighborhood. I don't know if that makes sense. Hey, maybe I will hit a lotto tonight. :-)

It is so hard to say coming from a place where people would be crazy to tear down a house just to use the lot to build on.... it really stretches my imagination to consider it, lol, since there is so much unbuilt land around here.

Anyway... I do get that it works that way in other places. So, if you need the cash on hand to get a "good" lot in the new neighborhood, you will have to do that somehow. If the perfect lot came on the market tomorrow, most likely you could get a home equity loan, since it would be only about half the value of your current house and use that to buy the lot while you sold. I also get what it means to have a neighborhood that is good for kids. As much as we loved our previous house and neighbors, this area is so much better for them - they can play outside, have friends next door, etc.

To the original question... I think that yes, you can fit a family that size in a house that size. It takes a mindset of not accumulating things, but it is not an unreasonable size. It could be tight in 10 years when you start hitting teens, but even then it can be worked with.

Obviously check with your tax advisor or accountant, but the purchase price for your lot along with the cost of improvemnts would all offset your gains, so the 250/500 should apply as long as you have lived there long enough (2 of the last 5 years?). Also, any commision you pay to sell comes off the sales price for figuring the gain.

If you are not hung up on a potential loss or not getting the full price of what you might in a great housing market, then I wouldn't make that a sticking point. I really feel that sometimes it's OK to say that you won't get the best deal, but the intangible portion of the situation makes it worth it.

[kransden]

I know this might be something you'll say "duh" on, but I'll point it out anyway. You do realize that the private school often costs you an extra 20% or more on top of your tuition because of fund raising and activities?

[ChefGirl]

Thanks for your kind words. Believe it or not, DH and I are both "numbers" people. I asked him this morning if we are going into this with our "head" or our "heart". He said "head"...lol....we'll see what happens.....we have been struggling over this for over a year now. in retrospect, we should have made a better financial decision with our current house. Again, back then it was just me and DH....our housing needs and lay out needs are different now that we have 3 kids...lol

[ChefGirl]

I know this might be something you'll say "duh" on, but I'll point it out anyway. You do realize that the private school often costs you an extra 20% or more on top of your tuition because of fund raising and activities?

Oh I know....trust me.....I spent about $20 for the 2008 - 2009 school year for DS this year for tuition, after-school care, after-school activities and summer camp/day care. so, yes...on top of that, tuition does go up every year as well.....oh yeah, we are prepared for the next 12 years or for DS #1......by the time DS#3 ready for K, we will be broke! lol.... just kidding.

[kijip]

If downsizing makes for a better neighborhood and more easily afordable schooling, I would go for it. You would be freeing up a large sum that would more than help with schooling costs and you would have somewhat lower annual expenses.

Like the pp have said, yes, you CAN comfortably live in a 2500 sf home with a family. 2500 sf is double the average family home size in the 1950s (when families were on average larger). I think it is more than doable.

[strollerqueen]

I know this might be something you'll say "duh" on, but I'll point it out anyway. You do realize that the private school often costs you an extra 20% or more on top of your tuition because of fund raising and activities?

But isn't it the same with public school where you live? It is here. I have one in private and one in public, and the money pleas for the public school are worse. At least the private school has it spelled out, exactly what you have to pay and when. The public school is a constant guilt trip, threats of program cuts, weeping and wailing and rendering of garments...OK, this is CA so I'm not being THAT over the top. But seriously, do that do that at your pubic school?

[strollerqueen]

If downsizing makes for a better neighborhood and more easily afordable schooling, I would go for it. You would be freeing up a large sum that would more than help with schooling costs and you would have somewhat lower annual expenses.

Like the pp have said, yes, you CAN comfortably live in a 2500 sf home with a family. 2500 sf is double the average family home size in the 1950s (when families were on average larger). I think it is more than doable.

Katie, do you happen to know the average home size now? Thanks.

[vejemom]

But isn't it the same with public school where you live? It is here. I have one in private and one in public, and the money pleas for the public school are worse. At least the private school has it spelled out, exactly what you have to pay and when. The public school is a constant guilt trip, threats of program cuts, weeping and wailing and rendering of garments...OK, this is CA so I'm not being THAT over the top. But seriously, do that do that at your pubic school?

I dunno. My admittedly anecdotal evidence is that DSCs' private schools constantly had their hands out, whereas the public schools appear to be doing OK with just the occasional PTA bake sale. Or maybe it just annoys me more because they were asking for an additional $1K on top of the $21K tuition. Or maybe it was because the owners of said private elementary school live in what must be a $3 million house with landscaping and pools that rival the Ritz Carlton in South Beach.

OP, I would get a good accountant to run through the tax implications. Make sure that you have lived in your current house long enough to get the $500K per couple tax write off. See how your mortgage interest deduction figures in. We rented out our old house and are renting another home close to my stepchildren. It needed to be done, and everyone is very happy and it is working out well, but YOWZA, the financial particulars make my head hurt. The physical process of moving ain't cheap. I'm estimating that the move and its attendant expenses probably cost us $10K. (Dumb things, like we needed a washer and dryer) Is it a good idea to buy the cheapest house in the neighborhood? Most real estate experts advise against buying a house that is under or over the average price in the neighborhood.

[niccig]

I dunno. My admittedly anecdotal evidence is that DSCs' private schools constantly had their hands out, whereas the public schools appear to be doing OK with just the occasional PTA bake sale. Or maybe it just annoys me more because they were asking for an additional $1K on top of the $21K tuition. Or maybe it was because the owners of said private elementary school live in what must be a $3 million house with landscaping and pools that rival the Ritz Carlton in South Beach.
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I think it depends on the school. I'm in SoCal like StrollerQueen, and friends have their son in a LAUSD school, and the school is asking for a $2000 donation per family per year to keep things like the reading teacher, PE teacher, music etc. Our local school asks for a couple of hundred dollars per family, but we're in a different school district. I was reading the other night that the CA education budget might be cut by 3 billion dollars - granted that's colleges as well as elementary schools, but I can see schools here asking for a lot more $$ from families or they'll have to cut many teachers, programs, increase class size etc.

[vejemom]

I think it is a California thing. DH used to work for a Silicon Valley firm, and I was surprised to learn that most of his California colleagues sent their kids to private schools. I assumed because it was a wealthy area with what you would assume was an outstanding tax base, that the public school system would be incredible. Apparently, that is not the case. FWIW, we are in Virginia, and have spent our entire married lives in two counties that are considered to have some of the best public school systems in the country. But I can totally see where you're coming from.