Big, expensive houses are all the rage these days. Celebrities and wealthy businesspeople seem to be buying up ever-larger homes at an alarming rate. While there are some advantages to owning a large home, there are also several disadvantages that you should be aware of before making the decision to buy one.
In this blog post, we will discuss five financial disadvantages of owning a huge house.
Houses That Are Too Large Can Be Difficult To Maintain, Both in Terms of Time and Money
Many people find it difficult to clean a small home. If you have 20 or 30 rooms in your home, this can become a daunting task. The cost of maintaining a large home from exerior to interior maintenance can be especially costly.
The average cost to maintain a home in the United States is a little over $16K per year. If your home is expensive, this price could double or triple.
They Often Require More Furniture and Accessories To Fill Up the Extra Space, Driving Up the Cost
When you move into your new home, you are going to need furnishings to fill up the additional space. If you have several living spaces and multiple bedrooms, these costs can add up quickly.
The price of furnishing a home can be anywhere from $25K to $50K or more for a large home. If you haven’t saved up for this. It can be an arduous task getting your home completely furnished.
You’ll Likely Need a Bigger Mortgage or Loan To Cover the Costs, Resulting in Higher Monthly Payments
With mortgage rates over 7 percent. The cost of a huge house has exploded and put this type of home out of range for most homebuyers. A million-dollar home a year ago would have cost you $4,054 per month with 20 percent down. The same house today will cost you almost $6,000 per month with the same 20 percent down.
If You’re Not Careful, You Could Easily Fall Into the Trap of Overspending on Your Home
Another issue that you may face is that there are fewer homes on the market. You may find yourself overspending for a home to beat out the competition. This would result in a higher-than-expected mortgage payment.
The Larger Your House, the More Energy It Will Consume – Meaning Higher Utility Bills
Electricity has skyrocketed this year. According to the US Energy Information Administration, residential electricity prices are up 14.3 percent from August 2021 to August 2022. With a larger home, you’d be facing higher utility bills. This is something that must be considered when looking for a huge house.
Think carefully before making a home purchase.
Are you thinking of buying a huge house? What are some of the disadvantages you’re worried about? Leave us a comment below.
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Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.