Strange, I don't consider 1200 sq ft to be living a simplified life - just sounds pretty normal to me. I guess in some parts of the country there are a lot of new McMansions with 5000 sq ft so it must be unusual in some parts. But I consider the McMansions to be the "new, strange" thing rather than normal, and the 1200 sq ft to be on the traditional side.
Other than the US (and maybe Canada) where in the world would 1200 sq ft seem small, except to the wealthy?
My parents lived in a couple of 4000 sq ft houses, and they were nice and one in particular we liked a lot. But even so, I have to say, there was a LOT of unused space, rooms that just sat there as storage, etc. Bathrooms that were never used but still had to be dusted and maintained. (One house had 5 different bathrooms, granted most were just 1/2 baths, but still... it was like we could not possibly be expected to cross to a different room to get to a bathroom). I was a kid then so I have no idea what the heating and cooling bills were, but I can sure say that there was a great deal of money just going out the window there. Also, my parents are NOT minimalists AT ALL, and I still can't figure out what other stuff they would need to acquire to fill up that kind of space.
We are a family of 3 living in 1170 sq ft. I won't claim it feels like a mansion to us, but it's perfectly fine. We never feel like "wow, this is small." It's just a home, a reasonably sized home. If we had another child, I don't see why we'd need to move either. I do agree that layout does make a difference, and I fully understand that not every 1170 sq ft house would feel big enough. But the issue then would be layout, and not square footage. Living in 1200 sq ft just isn't a minimalist life, unless you're from Beverly Hills I guess. It's a normal life.
I don't know about the kitchen, the kitchen is important to me and a "tiny" kitchen could be difficult. But again, that's layout and not square footage. Our 1170 square foot house has a HUGE kitchen. It's not one of those Martha Stewart kitchens with islands and all (it's a 1905 house that's not completely updated), but it has plenty of counter space and cabinets. Former owners even added a laundry closet to it, and there's enough space for a small table. And we have a big table in our dining room. Three reasonably sized bedrooms. The bathroom has room to move around in, we store a laundry hamper in there and such. (But granted, there is only one, which is fine with us but considered medieval living by many). We are not ultra-organized. DH has tons of computer junk. DD has tons of toys all over the place (and believe me, it's not a factor of the size of the house.. she has TONS of toys!! Some of them very large, as well, like ride-on toys and play kitchen and so on). We have a weight bench and an elliptical trainer. Our basement is not finished, and while we do have some junk stored down there, it's not used as living space in any way. There's nothing in the attic.
I don't know how well the house you're looking at is laid out, but there's just nothing inherent about 1200 sq ft that will be hard for a family of 4 to live with. Only if you are used to one-use rooms (like a home theater, or an exercise room) - and those are very new things, and will likely not be valued in the future when it's just too expensive to heat rooms that are only used a few hours a week or month or year.
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