Are you thinking about buying a home? No matter whether this is your first home or your tenth, owning the place you live in is still an important part of the American dream. And when many homebuyers shop for their next place, they often want the biggest and the best they can afford.
But you have good reasons to avoid this temptation and, instead, buying less home than you can actually afford. Why? Here are a few key reasons.
1. You Have Budget Left. If you spend your entire house purchase budget on a property, there is an opportunity cost to be made. You cannot then spend this money on things that might be just as important — or even more important — to you. What could you spend part of your house budget on if you saved it? This might include remodeling work, travel, college funds, or boosting your own retirement accounts.
2. You Save Money Monthly. The one-time cost of buying a large home isn't the only expenditure. In addition, larger homes cost more each month. You'll pay higher property taxes and insurance, more utilities, bigger or more frequent maintenance costs, and larger bills for services like cleaning or landscaping.
3. You'll Use the Space Better. When you have a home that's too large for your regular use, many areas are not utilized properly. Even if you can afford that home with two guest rooms, how often are you actually likely to use them both at the same time? What about unnecessary bathrooms, a formal living room or dining room, or a large basement? Assess how your family currently uses their space and be realistic about the need for unnecessary square footage.
4. You Aren't a Target. Owners of large and spacious homes often find themselves being more worried about theft, vandalism, burglary, or even intrusion. While no home is 100% safe from outside threats, a modest home is less of a temptation than a sprawling one.
5. You Can Focus on Other Things. If you put all your effort into a large home, that becomes more of a focus for your life. From the need to update constantly or fall to the temptation to compare it to others, a large home can become an emotional and financial drain. Modest square footage gives you fewer options, but it also brings fewer responsibilities to the house. Then, you can focus your energy on things that are more long-lasting, such as time with friends, life experiences, or getting your career on a better track.
Which of these reasons do you find the most compelling? From practical considerations to ensuring that you can put the more important things first in your life, a modestly sized single-family home could be the best purchase you've ever made — no matter what your budget really is.
For more information, contact a company like Partners Trust Real Estate Brokerage.