Big Versus Small
In a culture of super-sizing, people compete with one another to see who has the most and biggest amount of stuff. The guy with a 4,000 sq ft McMansion is obviously more successful than the dude with a 2,000 sq ft “Townhouse”. But really, who is doing better? Who has more freedom? And who sleeps better at night? Let’s start listing the pros and cons of having a larger house than a smaller one. The benefits and disadvantages are only exacerbated as the gap widens.
Pros:
- Successful in the eyes of neighbors, friends, and family
- Can hold more “stuff”
- More space to move around in the house
Cons:
- Larger down payment required in today’s financial climate
- Higher monthly mortgage payments
- Higher interest rates (expensive houses get jumbo loans with about 1% higher rates)
- Higher property taxes assessed
- Higher insurance premiums
- Higher utilities costs (more energy to keep more sq ft warm/cold)
- Higher maintenance/repair costs (more things can break and larger yard work surface)
- Less freedom to spend money to do other things because money is tied to the house
To me, I rather have a smaller living space and a larger nest egg. I rather have no property tying me down, forcing me to drudge my way through the never-ending rat race. I rather have less stuff but more experiences. I rather be considered unsuccessful and have all the time in the world.
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