In the market for a new home? How do you know what size home is right for you?
Too small, and you have to worry about feeling cramped and out-growing your new digs too quickly.
Too big, and you’ll be paying for space you don’t need, not to mention feeling lost in a maze of empty rooms.
To see what the experts think, tune in to our discussion with Robyn A. Friedman of The Wall Street Journal addressing “The Risks of Buying a Home That’s Too Big.”
If you are tempted to buy the largest house you can afford, just realize that more square footage typically means more money—and that means higher mortgage payments, taxes, utilities and maintenance, says Robyn.
While few buyers pine for a truly tiny house like those portrayed on HGTV, a too-large home can create problems of its own.
“Once your children leave home, you could end up living in—and paying for—a McMansion that’s largely empty,” cautions Robyn.
And for most people, your money could be doing more good elsewhere.
Cutting your housing costs each year by $20,000 over the life of a 30-year mortgage could help you accumulate a nearly $1.2 million nest egg, according to numbers we ran for Robyn.
You might find that having those dollars at your disposal means a lot more to you than owning that perfect empty 4th bedroom with room for your treadmill!