Infographic: This is Why Bigger Homes are Not Always Better
Bigger is not always be better. Though society loves to always push us towards a house that is slightly bigger or pricier, homebuyers do not often consider the long-term effects of their decision. While most people are aware that a bigger home will cost more upfront, it’s the hidden costs that can really add up significantly over time. This is one of many reasons why tiny homes make sense from a financial standpoint.
Considering the upfront cost is only the first piece of a very big home-buying puzzle. Of course, there is the price of the home, the closing costs, and the cost of furnishing a home to calculate. However, there are also the variable costs like electric, heating, and air conditioning, each of which goes up significantly for every additional square foot of house. Especially in homes that are not environmentally friendly.
The data shows that for each additional 500 square feet of a home. There is an additional $120,574 spent on maintenance, energy costs, property taxes, etc. over the life of a 30-year mortgage. In fact, there is an additional $350,000 spent on a house that is 2500 square foot house versus a 1000 square foot house.
Depending on your financial goals, the additional money that can be saved from living in a tiny home can make a big difference when saving for retirement or other major life events. If you are in the market for a new home, even if you’re not quite ready to make the leap to tiny house living, be sure to consider these additional costs of buying a bigger home when planning your financial future.
For more about the hidden costs of bigger homes, check out the financial breakdown in the infographic below.