The Hidden Costs of Buying A Bigger House

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.

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?

Infographic by Investmentzen