Is it a good decision to sell my big house and move to a smaller one if I can save money that way?

Question

Have people risen to the fact that a home is a home - whether it is in a posh area or an average area? I took loan to buy a big apartment in a posh area. The cost of apartment has gone up three times. I'd like to sell it off, pay off the loan and settle for a bit smaller house in an average area (which I might get for less money than my current house costs.) So, does it make good financial sense? Or, will I be compromising on my status in any way?

Answer 1

i say go for it.

Answer 2

if its gone up x 3 id sell it, it may not increase anymore but then again it may, there is prob a bigger chance prices will drop and it may be 10-15 years before you can sell in order to make your money back. if your in love with the house it would be difficult but financially it seems the right thing to do. i have realised social status is what you make it.  i always buy expensive things, well i did untill i realised i was an appropriate person and even if i stayed in a council house i would still have a high social status due to the way i present myself. on a plus side, youd be one of the wealthier ppl in an average area

Answer 3

your home is first of all, your home, and only second, an investment.  If you want to live in a smaller house, that's what you should do.  

With that said, you need to either consult a professional financial adviser or do some research.  Random answers generated here will not really suffice!  

For example, maybe you should rent out your first house rather than sell it.  After all, if the value of your 2nd house is less than the value of your new one, you may end up paying tax on the difference.  As long as you pay you mortgage and/or rent on time, your status won't be affected by changing.