When you think of your dream home, what do you think of? A big villa or a mansion with five bedrooms and a massive pool? Well, there are actually quite a few drawbacks to owning a bigger house! Find out why…
When you’re thinking of a bigger house first think about the money, of course! A bigger house means bigger bills, and we’re not just talking about a few bucks. The costs of a massive place can quickly add up and become overwhelming. Not only do bills and mortgages increase based on the size of the property, but almost all other costs can also. Bigger houses tend to be in nicer neighborhoods, meaning higher grocery and gas bills. And that’s not all, also expect these costs:
- A bigger home will need more furniture and decorations.
- The property tax and monthly premium will grow in size.
- The cost of the insurance for the homeowner will increase, perhaps even double.
- Any renovating and refurbishing a huge house takes more time, energy, and money.
Next, ask yourself why you want a bigger house. Of course, celebrities and social media influencers can make it seem like a big house and nice car is all there is in life. But that’s not just. In fact, a big house should probably land pretty far down on your list of priorities. Take a look at all other important financial goals: having a great plan, saving for retirement, paying off debts, and so on. If these have not been accomplished, those should take precedence.
If you have all your ducks in a row and most of your other financial goals are taken care of, maybe it is time for a bigger house! However, only pick one up if you need to. As investments, mansions are actually not the best, despite what others have said. While regular-sized homes can do well, depending on the market, villas almost always take a long time to sell for a great price. In fact, many often lose money on a mansion just to seek it quicker!
So, you have the money to buy a big house, and the other bills are paid. There’s one final question to ask: is a bigger house practical and functional? When taking the house tour, can you imagine what every room will be like? Or will some remain empty forever? If its the latter, there’s really no point in purchasing a bigger house. Also, think if you can stomach all the housework!. A huge house means more roof leakage, broken toilets, scratched floors, and dust.
Before thinking about buying a bigger house, call a financial advisor. Discuss the plan and how much money it might take to move, then think about future goals and strategies.