Make Money From Home

4 Reasons Not to Upsize Your Home – The Motley Fool

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Itching for more living space? Think twice before you buy a bi…….

Image source: Getty Images

Itching for more living space? Think twice before you buy a bigger home.

Key points

  • It’s common for people to outgrow their homes and want more space.
  • If you’re thinking of upsizing, consider that your finances might be impacted by things like higher mortgage payments or higher property taxes, among other things.

A lot of home buyers purchase starter homes with the intent to upsize down the line. If you feel that you’re rapidly outgrowing your home, you may be looking at buying a new one — one that comes with a lot more square footage. But before you go that route, consider these four reasons not to upsize just yet.

1. Your monthly mortgage payments might increase — a lot

If you’re looking to upsize in the same general area you live in now, then buying a larger home could mean taking on a much higher mortgage payment every month. And that could, in turn, make it harder to cover your remaining bills.

Plus, the more money you spend on a mortgage, the less you’ll have left for other purposes, like leisure and vacations. And so you’ll need to really weigh the benefit of more living space against the financial constraints that might result in.

2. You could face higher property taxes

If your goal is to upsize but stay in the same neighborhood, you may find that swapping your current home for a larger one means seeing your property tax bill skyrocket. A larger home is likely to have a higher value than a smaller one, and that could translate into property taxes you struggle to afford.

If your town has a high tax rate attached to it, you may want to think twice about upsizing. Or, you may want to look at buying a larger home in an area where property taxes are more reasonable.

3. You might spend more time and money on maintenance

The more square footage you have to maintain, the more time you might spend cleaning your home and fixing things when they go wrong. And it’s not just your time to consider. There’s also the cost.

If you’re the type who tends to outsource home maintenance, either because your work schedule is demanding or you’re not very handy, then upsizing could result in much higher …….


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