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Way back in 2016, I proclaimed a downsize challenge for me and Mrs. Groovy. Here is what that challenge entailed.
- Sell our Charlotte home for roughly what we bought it for ($225K).
- Use the proceeds of the sale (roughly $210K after realtor fees and closing expenses) to build a house in the Raleigh, North Carolina, area.
- Build a small (1,200-1,400 sq. ft.) but quality house on at least two acres.
- If our future house costs $185K, our housing downside challenge will have succeeded and we can happily fulfill our international travel goals—hello Ecuador, Vietnam, and Australia. We will, however, have to travel to and from Australia like the sorry people (i.e., economy class).
- If our future house costs less than $171K, we’ll have enough money to fulfill our international travel goals and get to and from Australia in style (i.e., business class).
Well, more than two years have past since I proclaimed the downsize challenge, and even though the foundation to Groovy Ranch hasn’t even been poured yet, the results of the downsize challenge are crystal clear. Here they are.
- Success. We sold our Charlotte home for $250K.
- Success. After realtor fees and closing expenses are accounted for, Mrs. Groovy and I walked away with $233K. And the land we bought for Groovy Ranch is about forty minutes north of Raleigh.
- Small failure. Groovy Ranch is going to be 1,528 square feet, a little more than our downsize challenge limit of 1,400 square feet. On the bright side, however, Groovy Ranch will sit on 3.3 acres. That’s 1.3 acres more than we were shooting for.
- Massive failure. The cost of land, Groovy Ranch, and Groovy Garage is going to be $290K as of now. There’s a chance it might go a little higher, but I don’t see it going over $300K. But whether it’s $290K or $300K, the total cost of Groovy Ranch is going to be a tad more than the downsize challenge of $185K. Bottom line: I still think Mrs. Groovy and I will travel to Ecuador, Vietnam, and Australia in the next five years or so, but it won’t be funded with the results of the downsize challenge. Not even close.
- Massive failure. Yeah, right. When we go to and from Australia, our pathetic butts will not know the bliss of business class or first class seats. They’ll only know the anguish of economy seats.
Groovy Ranch Costs to Date
Okay, the downsize challenge has turned into a dismal joke. But that’s the way things go if you want to build a house with nice finishes. There’s simply no way you can build a 1,500 square foot house with hardwood floors, granite countertops, stainless steel appliances, recessed lighting, vaulted ceilings, and HardiePlank siding for $121 a square foot—at least not in the Raleigh area of North Carolina. The total cost of Groovy Ranch is going to be more like $190 a square foot.
| Ranch | Total Cost of Land, House, and Detached Garage | Cost Per Square Foot of Heated Space (Total Cost Divided by 1,528) |
|---|---|---|
| Downsize Challenge Groovy Ranch | $185K | $121.07 |
| Actual Groovy Ranch | $290K | $189.79 |
Since the downsize challenge is now officially over, I might as well move on to another challenge. And that challenge is? Keep the total cost of Groovy Ranch below $300K, preferably below $290K.
Here’s what Groovy Ranch has cost to date.
| Item | Cost |
|---|---|
| Land | $35,111.57 |
| Design | $1,480.35 |
| Permits | $883.93 |
| Site Prep | $0.00 |
| Foundation | $0.00 |
| House | $0.00 |
| Garage | $0.00 |
| Landscaping | $0.00 |
| Miscellaneous | $500.00 |
| Total | $37,975.85 |
Fight-O-Meter
I hesitate to even comment on the Fight-O-Meter. This no-fighting nonsense is for the birds.
Lunch Zemplified
Mrs. Groovy and I are 7 for 7. We met another blogger this week and her real-life persona is even more impressive than her digital persona. Amy from Life Zemplified rolled into Raleigh with her husband John for a car show and we managed to meet them for lunch. Now, I’m not going to torture you with the details of our rollicking, beer-infused lunch, but I will share my impressions of Amy and John. Here we go.
- Amy is even prettier in person.
- Amy is also a font of ideas, and expect followers of Life Zemplified and Women Who Money to be reaping the benefits of that fertile creativity real soon.
- John hobnobs with Saudi royalty.
- When John isn’t hobnobbing with Saudi royalty, he’s either designing engines, drinking beer, or finding solace on a frozen lake ice fishing.
- And, finally, don’t ever complain to Amy that she parked her car to close to yours. I’ll let her explain why on her website. All I’ll say right now is this: you’ve been warned.
Yep, Amy and John won us over with their passion for finance and their zest for life. Super cool people. Can’t wait to hang with them again.
[Mrs. Groovy here. Say what’s the big idea? You forgot to plug the post I wrote for Amy and Vicki’s Inspiring Money Stories. It’s called You Can Start Late and Still Retire Early.]
Final Thoughts
Okay, groovy freedomist, that’s all I got. What say you? Should I bow my head in shame for failing at my downsize challenge so spectacularly? Or should I give myself a break and chalk up my failure to the fickle world of real estate and residential home construction? Let me know what you think when you get a chance. Peace.
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