Should You Buy a Larger House Than You Need?
Surely having a bigger space is a good thing, right? Well, this isn’t always the case. Believe it or not, bigger houses often come with a huge range of hidden costs that you might not have thought about.
It’s certainly true that people tend to outgrow their homes as their families expand, but at the same time, a bigger house isn’t always better. It’s worth putting in a lot of additional thought before you go ahead and take the plunge because if you do, you will soon find that you can come out making the best decision overall.
The Mortgage Will Be More
Everything is always bigger when you buy a larger house. You don’t just get bigger rooms, you get more significant payments, and it also costs way more to maintain them as well. Sure, you would expect your mortgage to be heftier since bigger homes come with a larger price tag, but it won’t just be the premium you pay each month that will rise at the end of the day.
You will also have to pay higher closing costs, you’ll have to pay more to furnish your home, and you may even end up paying higher property taxes too. As if that wasn’t enough, you’ll also have to pay more homeowner’s insurance. Alongside this comes higher energy costs, so you have to keep this in mind as well. There are numerous considerations when buying a home, and your costs are certainly part of the equation.
All of the above costs will add up incredibly quickly. Even if you have the money to spend, you still need to think about your financial future. Talk with a financial advisor to see if they can help you out with the higher premiums you have and also make sure that you have thought about your financial goals in the long-term, such as your retirement or any kids you might want to have.
If you want to get into the business of renting real estate, then it may be worth trying to take out personal liability coverage, as you will technically be a business owner.
Bigger Isn’t Always Better.
A house is quite possibly one of the biggest investments you’ll ever hope to make. Sure, you’ll want to buy a home that you love, but you also need to think about the return you will get on it.
This concept applies to every other investment that you’d be likely to make. Real estate trends change very rapidly, and you need to make sure that you do everything you can to safeguard yourself. Many young buyers in this day and age just aren’t interested in purchasing a bigger home, which means that what was once a sound investment now isn’t at all.
There is no way for you to predict what will be a good investment and what isn’t. This is especially the case when it comes to your home. After all, a lot can change over time, including how good the neighborhood is and the nearby amenities.
Big homes are just no longer attractive in the way they once were, which means that you may have a smaller pool of buyers to sell to if you invest when the time comes. If you want to avoid this, then finding a smaller property is certainly key. If the area you are purchasing does not have many expensive homes, becoming the lone wolf is usually not a sound idea.
Ego Shouldn’t Be a Key Driver.
When it comes to the property market, you need to make sure that you don’t let your ego get in the way. Sure, buying a bigger house may seem good on paper, and you may even find that there is a status that comes with it as well, but at the end of the day, you shouldn’t buy a bigger home than you need just for the status of it.
If you do, then you may find that you end up compromising your investment overall, and this is the last thing that you need.
More Space Isn’t Always a Good Thing.
When it comes to getting as much as you can out of your home, think about the property’s functionality and not the square footage. There is no point in you going all out and buying a super big property if you know that all of the extra space is just going to go to waste. More and more people are buying homes virtually. Doing so can be disastrous if you are just looking at the square footage of the property and not the functionality.
Think about what you are going to use and not what you will have just wasted, and you will soon find that things quickly turn around for you. It makes sense to visit a large home to make sure you are purchasing something with functionality.
You’ll Be Limited by Location.
When you buy a bigger property, you will be limited by the location. You may find that you end up having to choose a bigger property in a worse area, or that you simply cannot find one that comes in your budget that has the amenities you want. Additionally, commuting can be expensive when you pick the wrong location.
This can really limit the potential you have, and you may find that you end up going for a property that you aren’t happy with. This is the last thing that you need when you are investing so much into your home, so make sure that you’re doing everything you can to make sure that the property you are buying suits your lifestyle, as well as it being just “big.”
If you do this, then there’s no reason why you shouldn’t be able to come out on top.
There’ll Be More Upkeep.
You need to know about bigger properties because they are much more expensive to upkeep. You may find that you spend more money trying to keep everything in order, which can really work against you.
If you want to try and help yourself here, it is wise to make sure that your bigger property doesn’t need too much work. If it does, then you may find that you end up struggling to pay for it all and that you also have a really hard time getting it renovating to the standard so you can eventually make a profit.
Final Thoughts on Buying a Large Home
Unless you have a large family, sometimes buying the biggest home isn’t what it’s cracked up to be. You may find that your large home is the elephant in the room, so to speak. More and more people opt for a smaller home with more quality and amenities that are stuck with an overabundance of space, they don’t need. Think carefully before buying a property that occupies all of your time due to its size and expense.
About the author: The above article on why buying a larger house isn’t always better was written by Bernadine Racoma. Bernadine is the Content Manager of eTranslation Services. Her long experience in an international development institution and extensive travels have provided her a wealth of knowledge and insights into cultural diversity. She writes to inform, engage, and share the idea of the Internet being a useful platform for communicating, knowledge sharing, educating, and entertaining.