gahome

 

Let me say this as humbly as possible. I’ve spent my fair share of time in the big house. Not the big house usually involving a cell and shackles, but the large home which boasted many luxurious accoutrements. Some of which I couldn’t pronounce at the time of purchase, and others I didn’t realize were there until more interested folks came over to visit and pointed them out. Who needs a bidet? I don’t know but I had one. We had attained the dream; gainful employment, marriage, and a mini mansion. The house served as a sort of iridescent emblem of success we felt we deserved. Oh how wrong we were. We wasted no time using our 30 foot ceiling abode to throw “hey look, we’re successful” dinner parties and exorbitant soirees. It was our home. The problem is, we became house poor.

 

Nothing worse than coming home to a house you can’t afford. Every. Single. Day. It really defiles the dream of the big fat crib. Instead of peering out of the dramatic windows with self satisfaction, I found myself staring at the ceiling so many nights as I struggled to find a way to keep this house (job loss, business decline, and sky-rocketing medical bills). The mortgage posed no problem. The total cost of ownership did. Don’t fall for the hype.

 

Before I continue my diatribe, let me assert my desire to empower, not dissuade. If your dream is to acquire a 7,000 sqft slice of heaven, I am not here to stand in your way. Merely, I hope to impress upon you the importance of putting one foot (firmly) in front of the other before committing yourself to such a large purchase. Buying an expensive (large) home is quite different than any other major purchase one could make. It requires planning, sustainable resources, and what I have lacked in the past, reality. To help you avoid the pitfalls when buying a big house, please review the 5 most important things to consider before doing so.

 

1. Think long-term. What does that mean exactly? Well, buying a big expensive home is a long-term commitment. One that definitely shouldn’t be rushed into without thinking about the impact it may have on all areas of your life. Whether you pay for the big home in cash or mortgage it, keep in mind that you won’t be able to get out of the commitment without consequence. If you go the mortgage route, consider the fact that most mortgages are either 15 or 30 year terms. That represents a significant chunk of a person’s life in either case. Especially, if you consider making this a permanent dwelling for the life of the loan. A more manageable home (size) may make it easier to sell or rent in the event of a desired move or major life change.

 

2. The Upkeep. All homes require routine maintenance, but the more lavish the home, the more expectation there is to keep up its appearance. Generally, as the cost of the home rises, so to do the routine costs. Landscaping, A/C filters, and Pest Control are just a few of the routine bills that come along with home ownership. However, some bills are tied directly into the size. These costs in many cases are largely contingent on size. So before you take advantage of the best deal you’ve ever heard of in real estate, make sure you factor this into your accounting equation so you won’t be surprised when your landscapers bill costs more than your car note.

 

3. Saving (investing). You need to be able to pay your mortgage, eat out as you desire, and shop for whatever your vice is without it impacting your overall financial health. A hefty mortgage and escalating upkeep costs can stand in the way of this. I can personally attest to the importance of having multiple savings vehicles in order to protect you from financial calamity should a major life event occur. God-forbid a major illness befalls you or a close family member. If you have an expensive home to contend with also, it can spell disaster financially. You can’t predict what the future may hold and you certainly don’t have to live timidly, but you should always have strong savings objectives built into your monthly budget when deciding how big and how affordable a home is before purchase. The goal is to enjoy your home for years to come and not become house poor when life inevitably happens.

 

4. Utilities. Notice the reoccurring theme. Bigger house equates to bigger utility bills. Some homes cost a small fortune to adequately heat and cool in weather appropriate months. Unless you’re plan is to bundle up in the winter and walk around in the nude all summer (I’ve been there), your estate home may take you on a financial roller coaster if you’re not prepared. More square feet will always equal more money. Sure, you can exercise great energy saving practices, but when your home is 3500 sqft or more, there’s only so much you can do to keep your utility bills from reaching astronomical figures. Unless of course, you decide to move in with your neighbors for a few weeks out of the month.

 

5. Furnishing. You’ve just purchased a 6,000 sqft, tri-level dream home. Now you have the pleasure of furnishing it. I can’t tell you how many times I’ve visited a family’s dream home, only to see it hardly furnished years after closing. They’re not minimalist; they just couldn’t afford to invest “in” the home. A house and a home (for our purposes) are two different things. A house is what you buy, and a home is what you make. Your color scheme, your furniture selections, and your art appointments all reflect the personality of its occupants. If you buy the big home, it requires more furnishings, more stuff… It doesn’t mean you have to furnish your home from top to bottom within the first 30 days after closing, but you should make sure you can afford to turn your dream house into your dream home when you see fit— as you see fit.

 

 

Submitted by André George, a lifestyle writer and brand strategist. Follow him on Twitter & Instagram @TheAndreGeorge.