The Joy Of Living In Smaller Spaces In More Places
My retirement vision used to be a big home nestled on a hill with an ocean view, multiple bedrooms to host visiting friends and relatives, a sprawling garden and a pool to boot. I imagined frolicking with friends on the beach before coming home to a garden dinner, under the stars. This house would be my sanctuary where happiness, pride and contentment collide.
However, a different notion has taken hold. I now relish the joy of living in smaller spaces in more places. There are so many benefits in doing so that it is hard to resist once you’ve come to grasp with its concept.
Small Space Big Lifestyle
Properties are big-ticket items with hefty price tags. Owning a home is arguably the biggest expense for most people. The beauty about smaller spaces is that they tend to come with smaller mortgage (if owned) or rental payments.
By opting to live in a smaller, and hence cheaper, home you release money for another home to experience a different lifestyle altogether. With the right properties, you can even keep the costs to within that of a big house, especially if the 2nd place is in a lower cost country.
Such ‘location arbitrage’ can be appealing for retirees like my S.O and I. By living in 2 places we maximise our lifestyle without busting our budget. Twice the living for the same or lower cost! A no-brainer for us.
Not just for retirees, living in 2 smaller places can be for working folks too. You could live in a smaller city apartment close to work and escape to a 2nd home in the country or beachside in the weekends. Incorporating 2 lifestyles is hugely invigorating, preventing jadedness and monotony from setting in. The ability to retreat to another home whenever you can and wish to, is priceless.
Best of Both Worlds
To be able to live in more than 1 place truly exemplifies the adage ‘best of both worlds’. In this day and age of a borderless world and affordable travel, there are so many motivations to live in more that 1 place.
We have friends and acquaintances who own a 2nd home for climate preferences, increased leisure and recreation, cultural and lifestyle diversity, change of scenery, expanded social circle, change of pace, closer to family members, tax benefits…
For my husband and I, it was the search for warmer weather during winter months that spurred us to find a 2nd home in Marbella.
Prior to the Covid-19 outbreak, we used to travel to Asia to visit my parents and escape from the cheerless Dutch winter. When borders were closed during the pandemic, we decided to sell our 400sqm house in east part of Holland and headed south by car, in search of a place in the sun. We ended up captivated by Marbella, not just for its weather but also its amazing lifestyle.
From the sale of that 400sqm house, we bought 2 smaller apartments in Marbella. 1 for own stay (147sqm) and the other for investment (90sqm). We now move seamlessly between Amsterdam and Marbella throughout the year, being just a 3-hour flight away.
Easier Upkeep
With less footage, cleaning, furnishing and upkeep become easier, less costly and less demanding. Fewer things can go wrong in smaller spaces and repairs are often easier and cheaper to manage. Utility costs are lesser and with smaller spaces, you have less room to clutter.
Think about it: wouldn’t you prefer to spend time doing something more enjoyable than up-keeping your huge mansion? Buy more furniture, more yardage of curtains or blinds, more lawn to mow, more space to clean-up vs spending time on your hobbies or catching up with friends?
Risk Management
Being tied to a big house, especially in the face of economic and job uncertainty, is risky. Servicing a big mortgage can lead to financial hardship should the income stream be disrupted. The saying of not putting all your eggs into 1 basket applies to living spaces too – both self occupation and for investment.
Exchanging 1 big property for 2 smaller ones gives flexibility, such as renting out 1 of the homes should the need arise. Or be able to sell 1 of the properties to capture gains during a market high, and still have a place to call your own. This is 1 of the reasons why having multiple properties is safer than owning just 1.
Investment Potential
A 2nd home can also serve as an investment, potentially appreciating in value over time or can be rented out to generate income when not in use. We have neighbours who rent out their apartment in peak summer season in Marbella, returning in winter for their own enjoyment. This way, the cost of ownership is supplemented by the seasonal rent, some even making a profit.
Tax Benefits
In some cases, owning a 2nd home in another location can offer tax advantages. You can opt for the tax regime that is more beneficial to your personal circumstance.
Resale
Smaller spaces also tend to be easier to sell due to better affordability and bigger market. It is not surprising that current housing trend is towards smaller living spaces. Besides affordability, it is driven by smaller family units, lower maintenance costs, shift towards minimalist lifestyle and environmental consideration.
Less is More
Smaller spaces tick so many boxes, reflecting the shifts in lifestyle preferences, economic, social and environmental factors. Living in smaller spaces across more places magnifies the joy of exploring different lifestyles, maximising experiences, cultural exposure and even financial gains.
The way we choose to live should emphasise and support our lifestyle preferences. In a world of flexibility and hyper mobility, the concept of home is changing. A big forever home may no longer address modern aspirations with so many places to explore, countless adventures to undertake and savouring the fullest that life can offer.
Live richer,
Savvy Maverick
(Main image: A Balinese house. Savvy Maverick)
Disclaimer: The views expressed here are drawn from personal experiences and do not constitute financial advice in any way. Nothing published here nor should any data or content be relied upon for investment activities. Please do your own due diligence before making any financial decisions. Data and information cited from sources will not be updated after publication.
