Understanding the financial cost of large homes is very important to your daily living and lifestyle. As a Real Estate Broker I don’t think homebuyers or homeowners really think about what it means to buy a larger home whether it’s an apartment or house. So I’d like to discuss what owning larger homes mean financially.
Most people want a larger home because they need more space. You should ask yourself “more space for what” exactly. Let’s face it we tend to own more stuff than we truly need and half the stuff we own we never use much less touch in a year or more on average. If you need more living space, you first should clearly define why. One of the best legitimate reasons for a larger home is you need more bedrooms due to people currently living in the home. Which means your search should be focused on the bedroom bathroom count because all the other rooms outside of the standard kitchen and living room are icing on top. If you are looking for a larger home due to all the stuff you own, maybe it’s time to declutter or learn how to maximize the space you have. Most people forget about vertical storage opportunity and focus on only horizontal space. Taking advantage of vertical storage opportunities in your home comes down to furniture or fixtures that serve multiple purposes. This type of furniture or fixture may cost more but in the long run it will save you money and supply great comfort in the home. Plus making a home you can afford more livable is more fun than repairing a home you cannot afford. Also come to see while you own 12 pairs of jeans you only really wear 3 and for all the shoes, coats and more you just don’t wear them all despite your intentions.
Financial Cost of Large Homes
- Larger mortgage and insurance cost
- Spend more time cleaning the home
- Cost more to maintain
- Large utility and water bill
- Larger HOA dues
- Pay more in property tax
Having a larger home takes money out your pocket that could go toward other important current or future cost such as tuition, retirement, savings, vacation, food or healthcare. You need to shift to thinking how to supersize your savings for retirement rather than supersizing the amount of things you own. The goal in homeownership is to own a home while being able to afford that home and manage your finances in a way that keeps you debt free or with no more debt than 1 -2 thousand on a credit card and whatever you owe on the mortgage. Taking on this mindset will allow you to live a stress free financial lifestyle that will be priceless in times where job security isn’t guaranteed and healthcare is so costly. Having to take on one of both of those mishaps can suck your financial coiffeurs dry in a blink of an eye. So what does larger homes mean financially to your daily living and lifestyle? Be honest and you won’t regret your well thought out decision.