The Smaller House may be the Better Long-Term Investment
Big new houses certainly have their attractions. They offer enough space for every modern gadget, and indeed, not just one big screen tv but one in nearly every room. And when you look at the price per square foot, you begin to realize that it makes sense to buy in bulk as little houses cost much more per square foot both to build and during resale.
However, before you rush out and put everything into a monster house with the thought of it being the best investmest possible, you may want to consider the cost of maintaining that house over the years (mortgage payments, taxes, utilities, yard maintenance, house cleaners, window washers, updating all of the flooring later on, painting the entire exterior every so many years, tenting it every decade, HOA fees, and so on and so forth). You may find that other investments will cost you less, and your house might not be that sellable a few decades from now in just the way dated 70's homes are not considered hot items at the moment despite the recycling of some fashion trends.
You may want to consider this: that your children probably won't live with you for the next 30 years (do you want them to?) and so 10 bedrooms aren't really so great (unless you and your significant other need offices for all of your multiple personalities). If and when you do decide to sell and downsize, you'll be selling a house that someone will need to have bought and sold several houses in past lives to be able to afford (think buyers with contingencies) unless you miraculously encounter the wealthy person who has to have your house instead of any of the others on the block.
So you may want to sit down and have a numerically competent person crunch some long term numbers for you and reconsider what the house of your dreams might end up truly costing you over the years. If you're doing it for love, you'll go ahead and buy it if you can. If you're doing it for a long-term investment, you may find yourself thinking twice and going for the smaller house. It needn't be tiny, just small enough to encourage your kids to leave home and go to college...
You can go to an interesting Press Enterprise article that questions the logic of buying big as an investment by clicking on the link below:
Cash in later on Smaller House
However, before you rush out and put everything into a monster house with the thought of it being the best investmest possible, you may want to consider the cost of maintaining that house over the years (mortgage payments, taxes, utilities, yard maintenance, house cleaners, window washers, updating all of the flooring later on, painting the entire exterior every so many years, tenting it every decade, HOA fees, and so on and so forth). You may find that other investments will cost you less, and your house might not be that sellable a few decades from now in just the way dated 70's homes are not considered hot items at the moment despite the recycling of some fashion trends.
You may want to consider this: that your children probably won't live with you for the next 30 years (do you want them to?) and so 10 bedrooms aren't really so great (unless you and your significant other need offices for all of your multiple personalities). If and when you do decide to sell and downsize, you'll be selling a house that someone will need to have bought and sold several houses in past lives to be able to afford (think buyers with contingencies) unless you miraculously encounter the wealthy person who has to have your house instead of any of the others on the block.
So you may want to sit down and have a numerically competent person crunch some long term numbers for you and reconsider what the house of your dreams might end up truly costing you over the years. If you're doing it for love, you'll go ahead and buy it if you can. If you're doing it for a long-term investment, you may find yourself thinking twice and going for the smaller house. It needn't be tiny, just small enough to encourage your kids to leave home and go to college...
You can go to an interesting Press Enterprise article that questions the logic of buying big as an investment by clicking on the link below:
Cash in later on Smaller House
posted by Alma Jill Dizon, Riverside Realtor @ 9:46 AM
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