- How Much Money Is Needed To Invest In Rental Property?
- Should A Real Estate Investor Get An Agent’s License?
- 5 Big Factors That Affect The Costs Of Renovating Your Home
- SIBOR Hike – What You Can Do With Your Current Loan
- 6 Basic Don’ts Of Real Estate Negotiation Tactics
- Will New Condo Relaunches Trigger The Great Property Sale We Have All Been Waiting For?
- 10 Proximity Amenities That Add Value To Real Estate
- How To Get Personal Loans More Easily With Good Credit
Why Buying The Biggest House You Can Afford Will Be Worth It In The Long Run
Are you in the market to purchase a home? Well if you are, you’re going to have no problem finding plenty of houses on the market. What makes it so good is that so many housing options exist today that you should be able to get some pretty good deals if you look hard enough. With this being the case, the next question becomes whether or not you should go for a home that’s just the size you need or a little larger. Much larger. That are many very persuasive arguments that you should opt to get the biggest home you can get and for good reason. Now at first, this might not seem like the smart thing to do, especially if you’re single. You have to look at things in the long run though.
Here are some reasons why purchasing the biggest house you can afford will eventually be worth it in the long run.
You’ll end up starting a family or your current family will grow
When people get homes that are too small or are what they call the right size, this almost always backfires. Because there is always a good chance that there will be more occupants in the home. It can be due to marriage, children, parents, etc.
When we look for a house at the right size as a young adult, the home that’s the right size is usually the right size for one or two people. What happens if you start having kids or if you have more kids? You can’t expect your kids to remain cute and cuddly, and be contented to share a room with 2 other siblings when they grow into young teenagers.
The kids will eventually want rooms of their own at some point as they get older. This is inevitable. Even though we are social beings, each individual needs his or her own personal space as well. The lack of adequate living space is often an underlying cause for household disputes to occur. Things will begin to get cramped and it will be hard to get around when the number of occupants increase. Having a big house now can prevent this and it would be perfectly capable of housing a large family.
You won’t have to spend money to purchase another house anytime soon
It costs money to move and what’s worse is you can be held up for a long time trying to sell a house in order to do it. If you purchase a house that’s too small and then find yourself having to move your house can sit on the market for who knows how long. Then you might end up having to sell it for a loss just to get rid of it. That is going to really throw a wrench into your mood. Don’t make the mistake of thinking these things only happen to speculators and will not happen to you. The truth is that it affects everybody who has a house on the market.
Homeowners often argue that they would be selling their homes at a profit since real estate prices tend to rise over time. But the thing is that since you are moving into a new house, you will be buying one at a higher price compared to the time when you first bought that first house. The new home you got into would probably cost more, because by the time you sell the house real estate prices would have gone back up. This would make it tougher to get a new house and you’d probably end up settling. Purchasing a large house now can save you from all of this.
A large house is going to go up in value over a small one much faster
A larger home is usually going to be occupied by people with kids or other family. What do you think this means? Well one of the main things it means is that these parents are going to want good schools for their kids. There has been a lot of research done that shows parents are willing to pay more for a home if they schools in that area are good. Purchasing a large home is usually going to land you in a suburban neighborhood most of the time or at least in an area where the schools are better than average. This means the price of your home will go up faster than if you bought a smaller home geared towards singles or couples without kids.
The market for small homes is very different from the market for bigger homes. While smaller homes draw a larger crowd with higher demand in the mass market, bigger homes attract prospects that have a larger buyer power. And while those with a smaller budget will look to haggle for every little detail, those with higher net worth are able to appreciate the value of a bigger house. This makes it easier for you to let it go should a situation arise that requires you to do so. Meaning small homes tend to attract buyers that seek more value, while bigger homes attract buyers more willing to pay what it’s worth.
Downgrading is less of a headache
If ever you find yourself in an awkward situation where you have to sell your house, you can be more assured that you will be able to fetch a price enough for you to downgrade to a smaller apartment while leaving a sizable amount of cash available. This can be a very important factor if your finances are the source of your problems.
So instead of selling high and having to top up with more cash in the case of selling a small house in order to buy a bigger one, you are looking at a situation where you have a bigger budget of options in the case of selling a big house to replace it with a small one. If you can envision yourself selling your house in the near future, surely the latter option will look more attractive to you?