Most Americans dream of owning their own home. The size of that pictured house is often spacious. As the housing market gets tighter, the prices of homes go up. The bigger the home you wish to buy, the larger the price tag. Keep in mind that the bigger the house you buy is, the more everything else will cost. That means you have to look deep into your budget and far beyond the list price of a home to understand what you have to work with financially. Some things that a more prominent home might bring are:
Higher utility bills due to more space that you have to heat and cool
Increased property tax
Higher insurance premiums
More expensive repairs
More expensive renovations
Bigger yard to landscape
These are all additional costs that you should consider before you take the plunge to buy a larger home. The longer you live in the house, the more these expenses can add up. Many things like flooring, carpet, concrete, and roofing materials are priced by the square foot. While living large can be a great decision, the additional expenses can really add up.
Raising children is expensive. While you may want your child to have a large room and a lot of amenities right inside their home, there are so many other things that kids need. Consider your child’s hobbies. How much of your budget do you devote to those? Do your kids hope to attend college? How much extra money in your budget do you have for vacations and other activities that you may want to do as a family? Buying a bigger house could mean that you have less money in your budget for these things. Understand all the ways that you need to stretch your money before you have your eyes set on a larger home.
A more massive home means a more substantial monthly mortgage payment. That leaves less for you to save for things like retirement, rainy day funds, and other financial goals. Don’t let the fact that you have your eyes set on a big house shadow the rest of your life and your needs. A large part of buying a home is planning ahead. It will be a smart decision all around for you and your family to buy a home that’s affordable.
Buying a larger home fulfills a dream for many homebuyers, but don’t let that idea become a singular goal.
