Downsizing to my parents garage apartment
My husband and I are currently living in a 1100 sq ft apartment in the city . When we moved in we were both working full time jobs and could afford the rent no problem. We had a little surprise show up a couple of months after moving in....our son! He is now 3 months old and we are needing to downsize because I stay home with him full time. Most of the homes that we would feel comfortable moving into in the area around $1100, which would be a stretch for us. My parents have graciously offered to convert their garage into an apartment for us if we agree to pay off most of the loan to do it. We would be paying around $500 for about 3 years. My question is, is it worth it? During this time we would be able to pay off my husbands student loans, save money for a house, and maybe even get to travel some. But, we would be living about 10 steps away from my parents house in a 28' by 24' apartment. I love my parents and they are wonderful but we are a young couple in our mid 20's still wanting our independence and space. Would this move into a tight space with limited privacy be a smart financial move and make our family more tight or will we drive each other crazy? Does anyone have experience with smaller home/less privacy vs. more money/less stress dilemma?