How Downsizing Your Home and Upsizing Your Storage Unit Can Save Money
Housing costs in Winnipeg keep rising and rising with no end in sight. Condos are getting smaller and maintenance on larger homes is getting more costly.
Whether you are looking for your first home or downsizing your existing home, a storage unit can make incredibly great financial sense.
Over the last number of years, condos have generally decreased in size. Gone are the days of affordable 1800 square foot, 3 bedroom units. New 2 bedroom units today in Winnipeg can be anywhere from 800-1200 square ft. with the average being about 880 square ft.
Saving with a self-storage unit in Winnipeg
Most people don’t think of a storage unit as a long term investment but just crunching a few numbers can change your mind.
Trovit.ca reports that the average cost per sq. foot for a home in Winnipeg is between $213 to $235/ sq. foot. The cost of a self-contained, climate controlled storage unit is approximately $1.00 to $2.00 per sq. foot monthly.
Here is where we crunch a few numbers:
If you were to downsize your home by 100 sq. feet or buy a new home that is 100 sq. feet less than your optimal goal, you will spend approximately $23,000 less on your purchase.
If you were to rent a 100 square foot storage unit to make up for the size loss in your home you will spend, at the very most, $2400 a year. Most self-storage companies offer better rates on long term storage and a 100 square feet of storage holds much more than say 100 square feet of basement just by the fact that you can generally stack a storage unit much more than a basement room. This alone means that you will need less storage space with a self-storage unit than you would need in your home.
The interest on the $23,000 on your mortgage at 4% would be close to $1,000 per year alone. That would cover the cost of a 50 square foot storage unit for many years and allow you to keep your home clutter free with seasonal or seldom used items.