The Hidden Costs of Buying a Bigger House
In a culture where the focus seems to be shifting toward smaller homes (we’ve all heard of the tiny home trend), some of us are still looking for something big enough to stretch out in. Whether you like to host family gatherings, football parties with friends, or just have a mild case of claustrophobia, a smaller home simply isn’t ideal for everyone.
It’s obvious that a larger home will cost more money - that much is evident from the price tag. What may not be as evident are the hidden costs of that larger home. There are countless factors that go into your buying decision and planning your budget, but you may not realize just how much a few small things can impact the amount you’ll pay over that 30-year mortgage.
Some of the hidden costs can include increased utilities, furnishings for a larger home, even maintenance and property taxes. These expenses can add several hundred thousand dollars to the amount you’ll pay through the length of your mortgage, and even long after.
As a result, you'll want a good balance of home size - large enough to grow into and be comfortable in, but small enough to minimize your expenses and still have enough room.
It’s important to note as well that home equity can be an significant component to any investment portfolio, and a $5,000 tiny home won’t help much there. The idea is for every investment to grow your net worth. This equity and increase in a larger home’s long-term appraisal can be especially valuable down the road when you’re living on a military pension. It can cost you a lot more in the long run than you might think, however.
To help with your long-term planning, here is an informative infographic that shows you exactly how much those few hundred extra square feet might cost you over the years. Take a look at The Hidden Costs of Buying a Bigger House and make sure you’re making the right decision for you and your family.
Anastasia Ivanov is a freelance writer and graphic designer for InvestmentZen with a penchant for flipping houses. In her spare time, she enjoys cooking, hiking, and playing with her two cats Leena and Masha.