Comments on: Why I Say Buy A Big New House http://www.savingadvice.com/blog/2007/04/30/101372_why-i-say-buy-a-big-new-house.html Bridging the gap between saving money and investing Sat, 30 Aug 2008 09:01:13 +0000 http://wordpress.org/?v=2.6.1 By: Teri http://www.savingadvice.com/blog/2007/04/30/101372_why-i-say-buy-a-big-new-house.html#comment-44785 Teri Thu, 10 May 2007 15:44:38 +0000 http://www.pfadvice.com/2007/04/30/why-i-say-buy-a-big-new-house/#comment-44785 Angie - I certainly understand your viewpoint. Since we moved to a cheaper area we in a sense "downsized" and made a simpler lifestyle. I guess my point is the 2 aren't mutually exclusive - I agree with all your points. But if we had gone much cmaller and cheaper it would not have been as good as an investment. (I would never buy a house that required 2 incomes to maintain though - and we picked a house that required much less maintenance and upkeep than others - too many assumptions here. ;) ) Bruce - you make interesting points as well. We actually have a very cozy home (2600 sf is not that huge and layout makes a big difference). Plus around here 3-bedrooms are not selling, they are plummeting in value, while a more mid-range house like ours goes strong. This varies from place to place, but I would not assume small would hold it's resale value - not the case here at all. But maybe I should have titled this - why a say buy a medium, new house - LOL. You all bring up great points about going too large, indeed. Angie - I certainly understand your viewpoint. Since we moved to a cheaper area we in a sense “downsized” and made a simpler lifestyle. I guess my point is the 2 aren’t mutually exclusive - I agree with all your points. But if we had gone much cmaller and cheaper it would not have been as good as an investment. (I would never buy a house that required 2 incomes to maintain though - and we picked a house that required much less maintenance and upkeep than others - too many assumptions here. ;) )

Bruce - you make interesting points as well. We actually have a very cozy home (2600 sf is not that huge and layout makes a big difference). Plus around here 3-bedrooms are not selling, they are plummeting in value, while a more mid-range house like ours goes strong. This varies from place to place, but I would not assume small would hold it’s resale value - not the case here at all.

But maybe I should have titled this - why a say buy a medium, new house - LOL. You all bring up great points about going too large, indeed.

]]> By: Montreal http://www.savingadvice.com/blog/2007/04/30/101372_why-i-say-buy-a-big-new-house.html#comment-43824 Montreal Mon, 07 May 2007 20:30:11 +0000 http://www.pfadvice.com/2007/04/30/why-i-say-buy-a-big-new-house/#comment-43824 I don't want to buy a new house because 1) new houses are mostly out in the suburbs, 2) new houses have no character & they aren't homey (unless you can afford to hire a great architect to design a house just for you). I don't want to buy a big house because 1) I don't want to be more in debt than I need to be, 2) I don't need or want a lot of extra space, nor do I want to have to clean it!, 3) Again, big houses are more likely to be out in suburbia, 4) no plans for more people than we already have. I don’t want to buy a new house because 1) new houses are mostly out in the suburbs, 2) new houses have no character & they aren’t homey (unless you can afford to hire a great architect to design a house just for you).

I don’t want to buy a big house because 1) I don’t want to be more in debt than I need to be, 2) I don’t need or want a lot of extra space, nor do I want to have to clean it!, 3) Again, big houses are more likely to be out in suburbia, 4) no plans for more people than we already have.

]]> By: Carnival Of Personal Finance #99 - Awesome Money Quotes Edition http://www.savingadvice.com/blog/2007/04/30/101372_why-i-say-buy-a-big-new-house.html#comment-43716 Carnival Of Personal Finance #99 - Awesome Money Quotes Edition Mon, 07 May 2007 12:11:51 +0000 http://www.pfadvice.com/2007/04/30/why-i-say-buy-a-big-new-house/#comment-43716 [...] Why I Say Buy A Big New House by Teri Newton @ Personal Finance Advice. An interesting take on buying a house with controversy written all over it. It amazes me how sometimes when it comes to a purchase as big as a house, people throw their ideals of value out the window. To me, the bigger the purchase, the more something like value becomes important. Just some things to think about next time you are house shopping. [...] [...] Why I Say Buy A Big New House by Teri Newton @ Personal Finance Advice. An interesting take on buying a house with controversy written all over it. It amazes me how sometimes when it comes to a purchase as big as a house, people throw their ideals of value out the window. To me, the bigger the purchase, the more something like value becomes important. Just some things to think about next time you are house shopping. [...]

]]> By: Bruce http://www.savingadvice.com/blog/2007/04/30/101372_why-i-say-buy-a-big-new-house.html#comment-42564 Bruce Thu, 03 May 2007 15:24:12 +0000 http://www.pfadvice.com/2007/04/30/why-i-say-buy-a-big-new-house/#comment-42564 We just recently bought a 600 sq ft smaller house than what we had. Our family is adding one more member soon, so that is not why we downsized. We like smaller much better for several reasons: cost of taxes and utilities are less, cleaning and upkeep is easier, and it is more "homey." We are not soooo spread out, our family is closer. As a realtor I can tell you in this area the bigger house is going to take much longer to sell than a smaller house because many people prefer a smaller house, and the higher price knocks out a large part of the buying market. I have also heard horror stories about the quality of "new." Established neigborhoods are also better since it is already built out, you won't get a "suprise" in your area. And you know what the traffic is like. And you know how safe it is. Althogh these things can change, established is typically more stable. We just recently bought a 600 sq ft smaller house than what we had. Our family is adding one more member soon, so that is not why we downsized. We like smaller much better for several reasons: cost of taxes and utilities are less, cleaning and upkeep is easier, and it is more “homey.” We are not soooo spread out, our family is closer. As a realtor I can tell you in this area the bigger house is going to take much longer to sell than a smaller house because many people prefer a smaller house, and the higher price knocks out a large part of the buying market. I have also heard horror stories about the quality of “new.” Established neigborhoods are also better since it is already built out, you won’t get a “suprise” in your area. And you know what the traffic is like. And you know how safe it is. Althogh these things can change, established is typically more stable.

]]> By: Angie http://www.savingadvice.com/blog/2007/04/30/101372_why-i-say-buy-a-big-new-house.html#comment-42518 Angie Thu, 03 May 2007 12:17:04 +0000 http://www.pfadvice.com/2007/04/30/why-i-say-buy-a-big-new-house/#comment-42518 We built a large house nearly 5 years ago through a reputable company. We have had the basement do to a bad pour on the driveway-which they fixed. The master bath toilet leaked twice-my husband finally repaired it himself and a number of other small, but frustrating things happen. Our utility bills are the same as when we lived in our small, but old house. Our property value has skyrocketed along with our taxes. It takes a lot of work to clean and maintain such a large house and yard, using our evenings after work and most weekends to keep up with it. We are planning on scaling down shortly to free up time to do other things than sinking so much time, effort an money into owning and upkeep on our house. We did build with resale value and have kept walls, counter, flooring, tile, etc. in all neutral shades which helps with resale. Be careful the amount of debt you get yourself into. Choosing a house that requires two incomes means that no one will be able to stay home with the future kids should that desire occur. When my kids were little, only desperation would have had me working and dumping them into daycare every day. We planned our finances so I could stay home with our future children. Now one is in high school and the other college. We thought a big fancy house was what we wanted and found out it is a great deal of work and stress instead. I am ready to go to a smaller, simpler house and way of life. My advice--weigh your options, know your lifestyle and what suits you and plan ahead to make your dreams come true. My mistake was thinking my dream was to own a large custom house. Instead I want a simpler, less hectic lifestyle with more options. Those options aren't alway available with the big, expensive house. They take more of your life energy than I would have ever imagined. We built a large house nearly 5 years ago through a reputable company. We have had the basement do to a bad pour on the driveway-which they fixed. The master bath toilet leaked twice-my husband finally repaired it himself and a number of other small, but frustrating things happen. Our utility bills are the same as when we lived in our small, but old house. Our property value has skyrocketed along with our taxes. It takes a lot of work to clean and maintain such a large house and yard, using our evenings after work and most weekends to keep up with it. We are planning on scaling down shortly to free up time to do other things than sinking so much time, effort an money into owning and upkeep on our house. We did build with resale value and have kept walls, counter, flooring, tile, etc. in all neutral shades which helps with resale. Be careful the amount of debt you get yourself into. Choosing a house that requires two incomes means that no one will be able to stay home with the future kids should that desire occur. When my kids were little, only desperation would have had me working and dumping them into daycare every day. We planned our finances so I could stay home with our future children. Now one is in high school and the other college. We thought a big fancy house was what we wanted and found out it is a great deal of work and stress instead. I am ready to go to a smaller, simpler house and way of life. My advice–weigh your options, know your lifestyle and what suits you and plan ahead to make your dreams come true. My mistake was thinking my dream was to own a large custom house. Instead I want a simpler, less hectic lifestyle with more options. Those options aren’t alway available with the big, expensive house. They take more of your life energy than I would have ever imagined.

]]> By: Teri http://www.savingadvice.com/blog/2007/04/30/101372_why-i-say-buy-a-big-new-house.html#comment-42319 Teri Wed, 02 May 2007 20:54:02 +0000 http://www.pfadvice.com/2007/04/30/why-i-say-buy-a-big-new-house/#comment-42319 Phil,I live in California, and the opposite is true. Buying up, in the market in the last 30 years (not just in recent years) means a huge increase in property taxes. Better to lock them in for life here. IF we moved and bought a similar house today our property taxes would more than double, from $3k/year to $6 or $7k. At the time we bought, property taxes and insurance were not much different between our home and smaller/older homes. Property taxes are pretty much locked in - unless laws change - until we move. But you make a point - all things to consider based on the area where you live. I never really got that cleaning argument either. All the more reason to go new I guess. Newer materials are easier to keep clean. I don't spend a lot of time cleaning the house - it just doesn't get dirty - no cobwebs or anything. I think it is a newer material thing more than anything. IT doesn't have any more kitchens or bathrooms than a smaller home, and to me that is what I spend most time cleaning. OF course as a family we all share house work and such, not like 1 person is stuck cleaning the entire house. I just haven't found it a big deal myself. Phil,I live in California, and the opposite is true. Buying up, in the market in the last 30 years (not just in recent years) means a huge increase in property taxes. Better to lock them in for life here. IF we moved and bought a similar house today our property taxes would more than double, from $3k/year to $6 or $7k. At the time we bought, property taxes and insurance were not much different between our home and smaller/older homes. Property taxes are pretty much locked in - unless laws change - until we move. But you make a point - all things to consider based on the area where you live.

I never really got that cleaning argument either. All the more reason to go new I guess. Newer materials are easier to keep clean. I don’t spend a lot of time cleaning the house - it just doesn’t get dirty - no cobwebs or anything. I think it is a newer material thing more than anything. IT doesn’t have any more kitchens or bathrooms than a smaller home, and to me that is what I spend most time cleaning. OF course as a family we all share house work and such, not like 1 person is stuck cleaning the entire house. I just haven’t found it a big deal myself.

]]> By: Paula http://www.savingadvice.com/blog/2007/04/30/101372_why-i-say-buy-a-big-new-house.html#comment-41999 Paula Tue, 01 May 2007 18:16:20 +0000 http://www.pfadvice.com/2007/04/30/why-i-say-buy-a-big-new-house/#comment-41999 I notice no one has mentioned the effort of keeping a big house clean. We bought a 7 bedroom house, and have 3 kids. It has lots of room and the kids love it, but I spend massive amounts of time trying to keep up with the dust, clutter and spiderwebs. I notice no one has mentioned the effort of keeping a big house clean. We bought a 7 bedroom house, and have 3 kids. It has lots of room and the kids love it, but I spend massive amounts of time trying to keep up with the dust, clutter and spiderwebs.

]]> By: Phil http://www.savingadvice.com/blog/2007/04/30/101372_why-i-say-buy-a-big-new-house.html#comment-41980 Phil Tue, 01 May 2007 16:22:35 +0000 http://www.pfadvice.com/2007/04/30/why-i-say-buy-a-big-new-house/#comment-41980 I don't agree. Usually you buy your first home at around 30 (if you're lucky, I think that age is rising due to unaffordable housing, but I digress). It's not a good idea to be in a position where you can just barely afford to pay the mortgage. No, better to buy a low end home, pay off early and then go on to buy another home (again, not really a high-end home, though maybe in a different neighborhood) and rent out the original one. Repeat if you like. As far as buying new goes: The problem with that in many areas is that the property tax can be significantly higher for the new home than it is for a comparable older home. The reason for that is that many states have limits on how fast property taxes can rise. But a new home starts out with the property tax valuation which you bought the house for. Where I live the difference can easily be $1000/year and in many cases much more than that. I don’t agree. Usually you buy your first home at around 30 (if you’re lucky, I think that age is rising due to unaffordable housing, but I digress). It’s not a good idea to be in a position where you can just barely afford to pay the mortgage. No, better to buy a low end home, pay off early and then go on to buy another home (again, not really a high-end home, though maybe in a different neighborhood) and rent out the original one. Repeat if you like.

As far as buying new goes: The problem with that in many areas is that the property tax can be significantly higher for the new home than it is for a comparable older home. The reason for that is that many states have limits on how fast property taxes can rise. But a new home starts out with the property tax valuation which you bought the house for. Where I live the difference can easily be $1000/year and in many cases much more than that.

]]> By: The Simple Dollar » The Simple Dollar Morning Roundup: PBS Mormon Documentary Edition http://www.savingadvice.com/blog/2007/04/30/101372_why-i-say-buy-a-big-new-house.html#comment-41930 The Simple Dollar » The Simple Dollar Morning Roundup: PBS Mormon Documentary Edition Tue, 01 May 2007 13:30:27 +0000 http://www.pfadvice.com/2007/04/30/why-i-say-buy-a-big-new-house/#comment-41930 [...] Why I Say Buy A Big New House Don’t tempt me… please, don’t. (@ personal finance advice) [...] [...] Why I Say Buy A Big New House Don’t tempt me… please, don’t. (@ personal finance advice) [...]

]]> By: livingplanet http://www.savingadvice.com/blog/2007/04/30/101372_why-i-say-buy-a-big-new-house.html#comment-41856 livingplanet Tue, 01 May 2007 08:58:05 +0000 http://www.pfadvice.com/2007/04/30/why-i-say-buy-a-big-new-house/#comment-41856 nice article. the meta message is, as i wrote last week,a house (or car) should fit your and your family's household needs. these are just instruments to improve the quality of family life, which is very important in building wealth. if you need to spend a little more, go for it. the mantra should be, buy top of the line, but never full price. nice article. the meta message is, as i wrote last week,a house (or car) should fit your and your family’s household needs. these are just instruments to improve the quality of family life, which is very important in building wealth. if you need to spend a little more, go for it. the mantra should be, buy top of the line, but never full price.

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