The Hidden Costs of Buying A Bigger House

    When you purchase a new house, it’s easy to start looking at larger homes slightly above budget. But there are more costs associated with larger homes than just the initial purchase price.

    The Hidden Costs of Buying A Bigger House

    SHARE THIS INFOGRAPHIC ON YOUR SITE WITH THE FOLLOWING CODE:

    <p><a href='http://www.investmentzen.com/news/the-hidden-costs-of-buying-a-bigger-house/'><img src='http://www.investmentzen.com/blog/wp-content/uploads/2017/03/the-hidden-costs-of-buying-a-bigger-house_infographic.png' alt='The Hidden Costs of Buying A Bigger House' width='800px' border='0' /></a></p>
    <p>Via: <a href="http://www.investmentzen.com/news/the-hidden-costs-of-buying-a-bigger-house/">InvestmentZen.com</a></p>

    After calculating energy costs, property taxes, home furnishings and home maintenance, those extra 500 square feet can end up costing you thousands of dollars more than you realize. Think about installing energy-saving technologies such as solar panels and induction cooking to save more money on your electricity bill when you buy a big house. 

    Average one-time costs when buying a new house

    • Purchase price of a average new house:   $84/sq ft
    • Closing costs:   3.5% of the home price
    • Costs to fully furnish a new home:   20% of the home price

    Average annual costs of home ownership

    • Energy costs:   $1.03/sq ft
    • Maintenance:   1% of the home price
    • Property taxes:   1.3% of the home price

    Over a 30 year mortgage, each additional 500 square feet of space will cost you an extra-

    • $42,000 in initial purchase costs
    • $1,470 in closing costs
    • $8,400 in furnishing
    • $24,148 in mortgage interest
    • $16,506 in property taxes
    • $15, 450 in energy costs
    • $12,600 in maintenance

    How much that bigger home will REALLY cost you over 30 years assuming you have a 30-year mortgage at 4%

    • A 1000 sq ft house will cost you an extra $241,148
    • A 1500 sq ft house will cost you an extra $361,722
    • A 2000 sq ft house will cost you an extra $482,297
    • A 2500 sq ft house will cost you an extra $602,871

    So before buying that bigger house, ask yourself:

    Is it truly worth the extra cost?

     

    Leave a Reply

    Your email address will not be published. Required fields are marked *