4 Reasons Why Big Houses Make you Poor.


Reason #9 that The Street gave for us not being rich is that our houses are too big. It seems like it would have a simple explanation, big houses cost more, but there is more to it than that.

REASON #1: Big houses cost more to build or buy.

REASON #2: Big houses have higher utility bills. There is more space to heat and cool, more lights that could be running (sometimes without you even knowing if they are on at the other side of the house), there are more windows and doors that need to be well insulated.

REASON #3: Big houses need more stuff to fill them up. This one is often overlooked. Most of us naturally fill up our house. If we are in a bigger house than we need more stuff to make it feel “homey”. Who wants an empty house!? I have moved 6 times during my marriage and each time we are surprised at the amount of stuff we have. I have heard the tip that you should completely empty a room and then completely set it up again. Whatever isn’t worth the time should be donated or thrown out. I haven’t done that yet – but I imagine it would work well.

REASON #4: There is more “repair” area in a big house. The more space you are working with, the more updating and repairs you will have to do. If you have to replace the carpet, it will cost more. If you need to paint you will need more. There is more attic space that will need insulation, more windows if you update them.

Figure out exactly how much you need and then consider going a little smaller! What’s the point of keeping up with the Joneses when you have the chance to break free from the rat race entirely!

Did you like this post? Be sure to check out the entire series here!

The final thing you need to know to be rich is to Take Advantage of Every Opportunity!

{ 7 comments… read them below or add one }

1 retire-at-40 December 14, 2008 at 11:32 am

You’re so right, and all those things we lug around with us from house to house just end up being something we have to keep paying for even though we don’t use them.

Downsizing and shifting into a smaller house has been very beneficial and satisfying to me.

Reply

2 Mama2ce December 14, 2008 at 7:42 pm

That is a great article 🙂 I am going to make it one of my goals next year to declutter most of my stuff. I’ll see how it goes!

Reply

3 David Leggett December 15, 2008 at 6:08 pm

All great suggestions (especially for someone like me who is looking to purchase a house sometime soon).

However, I am interested to see if you can think of any perks of a big house. Given the current economic situation, could it possibly be a good choice to get a bigger house that might be worth more in a sale over the next 5-10 years?

Reply

4 Mama2ce December 16, 2008 at 1:30 am

That is an excellent question David, and hard to answer! In the past houses continued an upward trend so larger houses would gain more just because it started at a higher price. Now that the bubble has “burst” and the baby boomers are getting older, I don’t think that trend will continue.

I have read a lot of articles pointing out that many of the baby boomers will want to scale down as they retire and their kiddos move out. If that is true then the smaller houses should gain value and the larger houses should get harder and harder to sell.

That said, personally, I don’t think I would ever get a house with only 1 or 2 bedrooms because people have gotten used to their space so I could see a 1 bedroom house being hard to sell. For me, I think 2-3 is the magic number unless you need the extra space.

Maybe look for quality instead of space. Fewer bedrooms, but large closets, a large kitchen, quality construction, maybe a whirlpool tub or other amenities that would appeal to an aging/retiring population. Good luck in your hunt!

Reply

5 Cassandra May 1, 2014 at 4:58 am

I completely agree with the reasons mentioned here. I think maintenance of big houses is one of the most costliest things ever.
Cassandra recently posted..Design District apartments are a hidden gem in central DallasMy Profile

Reply

6 Heidi May 12, 2014 at 9:42 pm

It really is!
Heidi recently posted..New #Printable #Coupons for #JanuaryMy Profile

Reply

7 Townhomes for Sale May 8, 2014 at 8:17 am

Thanks for this post, appreciate it much. I so happen to read another blog before you that small house can make you rich this is somehow interesting and facing the fact that it is really true. Great post!

Reply

Leave a Comment

CommentLuv badge
This blog uses premium CommentLuv which allows you to put your keywords with your name if you have had 3 approved comments. Use your real name and then @ your keywords (maximum of 3)

Previous post:

Next post: