Summary of this article
Smaller homes suit modern urban lifestyles
Lower costs, easier upkeep, better security
Right-sized homes ideal for retirement living
Anything small in today’s world seems inadequate. It can signify a lack of ambition, lack of imagination and even the zeal to live a full life!
Live life king-size is the mantra that is on everyone’s lips.
Once upon a time, there was a concept of a home - a home that accommodated the various requirements and the idiosyncrasies of the occupants. So there was an open terrace to accommodate the kite flying by the kids ( and the adults during Sankranti ), the papad making penchant of the dadima, the cleanliness fiend ( the lady of the house) who wants the same space for drying clothes, whose sweet smell she raves about, etc.
Then there were multiple rooms which were occupied by different members, that reflected their personality, penchant for clutter and hoarding! Some rooms had balconies attached, and others just had windows. There were rooms which no one in particular was occupying. There was a puja room where some elders spent time chanting stotras and used to witness the appearance of younger ones, primarily before exams!
There was a garden around the home - some parts overgrown with weeds, and others had plants grown by the one with a green thumb. Further construction used to happen as and when necessary.
All this was then. People just used to ask if they had their own home - that’s all. No query about 2 BHK or 3.5 BHK!
The money equation supports a small home - With the advent of urbanisation, lots of things have changed. The most important thing that changed was the concept of buying a plot and constructing one’s own home. This still happens in smaller towns, but hardly happens in metros or even A-class cities.
One of the reasons for that is the astronomical prices of land in these cities. A small piece of land in a central place would cost crores. Also, today, people live in nuclear families and big homes (like they used to be) are not necessary any longer.
Security considerations: Further, people worry about security. In a typical household, there are just 3-4 people and even there, a couple of them will be out for work during the day. When the family travels, the house will be locked, and an individual's home would be a security risk.
In the case of a flat which is part of a society or a gated community, security personnel are provided at a society/ community level. Access to the building and the individual dwellings is vetted and controlled by them.
Also, as part of the security arrangements, there are surveillance cameras, access control systems, verification of bona fides before the visitor is allowed access to a home, etc.
These offer a decent level of security to the home dwellers.
Financial considerations: The costs in societies and communities are pooled, and hence the shared cost per dwelling is moderate. Even then, the society charges payable will depend on the area of the home and the various amenities like Gym, swimming pool, play area, garden, security, maintenance, etc.
In the case of an individual home, the costs of maintaining the home, garden and security itself will be quite high, without any of the frills like a swimming pool, Gym, etc. Also, the common facilities ( like lights, water pump, car park or any other equipment ) are operated by specific people who have been employed. In an individual home, the people living there will need to pitch in; otherwise, if external people are employed, the full charge needs to be paid, unlike shared expenses in housing societies. Also, painting and repairs in an individual's home are costly as they need to be borne by that person alone.
There is a very clear financial case in favour of flats in a building with common amenities.
Home upkeep: A big home is great, with lots of space. It confers bragging rights among friends and in society. Everything is fine till you are called in to maintain it!
You may have house help to assist with that. Of course! With a big home, one may need more than one house help, which would push up the costs. If the maid does not come, as happens from time to time, one may need to double up on the work.
Otherwise, call other agencies that provide such services on the fly. Covid was a period when people had to clean up behind themselves. A big home did not look like such a great idea then! Nor would it now, when the onus of cleaning devolves on oneself from time to time.
Right-sizing homes: Having homes of the right size is hence very important from a money and a practical standpoint. A big house, especially in the retirement years, would mostly be superfluous as children would have completed their education, maybe working and staying in their own homes or be in other cities / countries.
Many find walking inside the house from room to room in big homes tiring. Compact homes are far more practical, easier to maintain, are easy on the pocket and far more livable.
Convincing people about this is difficult. But that does not take away the merit of having a smaller home, especially in retirement.
Suresh Sadagopan is the MD & Principal Officer at Ladder7 Wealth Planners and the author of the book “If God Was Your Financial Planner”
(Disclaimer: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)
