Thinking about upgrading? Think again.
I do not own a overly-large house. Our house fits our needs. I do dream though… I dream about having a HUGE house… a basement full of toys and kids, a guest room for family to visit, a game room…ect.
BUT, even if we could own that… we probably wouldn’t… upgrading a house has a lot of hidden costs that could trash your budget fast!
6 Reasons Why you Should NOT Upgrade to a New House
Expensive utilities. Most people are ready for the higher mortgage. But are you ready for the higher water, gas, and electricity to keep a new house that size running? Read on how to save on your AC bill to help with this expense.
2. Home Insurance
Expensive home insurance and home taxes. Now, typically this comes out of our monthly mortgage… but still, are you ready for that? Your monthly mortgage payments could increase 200-300 a month just from your insurance and taxes. Each year our home insurance goes up 300-500. I spend about 2 hours making phone calls for different quotes and I’m able to typically find a lower price. But the home insurance STILL increases each year despite my hard work.
3. More Space to Fill
More space to fill and clutter. Having all the extra space is GREAT! More room for toys, friends, electronics, ect. Having all the extra space might prompt you to buy more toys or items to fill the space. Items you might not have budgeted for or planned on needing… Your wants magically turned into needs because you have the extra space. Are those extra “impulse” expenses budgeted in?
More time…needed for cleaning and yard work. Have you added in that extra time in your life to clean such a large home or provide yard-work for it? If you don’t have the time, have you planed the extra money in your budget to have someone take care of it for you?
When upgrading from a smaller to a larger new house, there are more rooms and space that need to be furnished. This will mostly likely only be a one time expense… BUT, add that on top of your initial down-payment, or other home upgrades and things could start to get pricey.
6. Family Time
Family. A new home will give you space, but it might give you too much. With a smaller home there might be only one or two rooms to congregate in. In a larger home it’s easier to spread out which also might mean not as much together time. With each kid having their own bedroom, or a game, reading, or toy nook… will your kids play together? Will you get that quality time together you used to have?
It’s always fun and nice to dream of having a larger house. I believe you can have a larger house, and if you want one, go for it! Or even if you are thinking of adjusting from an apartment to a house.
please be aware of all the other hidden expenses that will come with the new mortgage payment.
What do you think? I’ve heard many people upgrading but only a few stories of some people “downgrading”. Is the upgrade worth the price?
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