Pros and Cons of a Larger House or Luxury Home
When choosing to buy a new home, your search starts with a budget and a general idea of the size and type of house you want. The size of the house you pick out for yourself is probably one of the most important factors to consider, and is also one of the first: Are you looking for a cozy starter home? A large luxury home? Or something in the middle?
While there are many advantages to owning a luxury home, they’re not for everyone: There are quite a few factors you should consider before making the commitment to buying one, even laying aside the obvious difference in cost. Look at the pros and cons I’ve outlined below, and think about what each of these things would mean for you.
- More space for guests, both bedroom-wise and entertaining-wise: Luxury homes don’t usually have problems with overcrowded rooms!
- More amenities – most luxury homes come with cool bonus features, like pools, jacuzzi tubs, in-home theatres, etc. – or have room for them if you want to add them.
- More storage – small homes mean you have to leave a more minimalist lifestyle, simply by design. You’ll never need to purchase more storage, and you won’t have to make hard decisions about what to throw away nearly as often.
- Better for larger families – especially if you have older children who need their own space and privacy. A larger home also means they can have friends over and not disturb anyone.
- More spread out: It’s somewhat easy to isolate yourself in larger homes, especially those that offer plenty of entertainment. If you have reclusive teenagers, or small children who could get into things they’re not meant to, this might present a problem.
- More space equals more opportunity for clutter – you might not realize how much stuff you’re accumulating until it becomes a very large task.
- More space also means more space to clean. If you buy a luxury home, you may want to also consider whether you’ll need to hire help to clean it and keep it in order.
- More occasion for parties: Sometimes having the largest home in your family means you’ll be the default house for holidays and gatherings. If you’re not the hosting type, you may want to avoid this.
In the past few years, shows about minimalism, tiny homes, and eliminating clutter have become popular, and buying trends have reflected that: Fewer people seem to be interested in large or luxury homes now than they once were. But Coronavirus has appeared to begin to shift this trend back in the other direction – here is one analysis of this trend, from Abby Stiller of Remax in Florida, to give you more perspective.
Why is Larger/Luxury Home Demand Increasing?
A year ago, additional space and extra amenities had a very different feel for homebuyers. Today, the health crisis has brought to light how valuable more square footage and carefully designed floorplans can be. Home offices, multi-purpose rooms, gyms, and theaters are becoming more popular, and some families are finding the space they need for these upgrades in the luxury market.
The Institute for Luxury Home Marketing (ILHM) explains:
“With quarantine concerns still top of mind for many luxury buyers, we see large, sprawling estates making their comeback.
For instance, the last six months have seen a resurgence in the buying of mega mansions and estate-size homes – specifically properties that offer space (both inside and outside), separate home offices, gyms, and private amenities such as swimming pools, yoga studios, and recreation rooms.”
This was not the case at this time last year, as the most recent Luxury Market Report from ILHM emphasizes:
“Exactly one year ago, we reported that demand for large properties, mega mansions, private estates, and luxury ranches had reduced significantly over the previous few years; especially from the younger generation of luxury property buyers.”
For today’s buyers looking for larger homes, steady increases in equity might be what makes a move possible. Leveraging home equity makes it easier to afford the down payment on a luxury home, and current low interest rates are making mortgage payments more affordable than they have been in years. The report from ILHM also notes:
“Luxury real estate prices may continue to strengthen further into the third quarter, as the affluent continue to see large investment returns from the currently strong stock market.
Coupled with the low interest rates, the policies granting (and insisting) on working from home implemented by many employers, and the concerns of the pandemic, all translate to the affluent increasingly trading in their city lifestyle for a home that has it all.”
Clearly, today’s strong gains in home equity paired with record-low interest rates make fall a great time to move up into the luxury market to meet those changing needs.
The Bottom Line
Whether you think you might be interested in a luxury home, or if reading this has made you decide that something a little more modest might be right for you, please give me a call or send an email – I’d love to set up a meeting, in person or virtually, to discuss your options, and start looking together.
And if you’re still uncertain after reading this, still reach out! I’d be happy to answer any questions you may have and talk it over further – as an experienced Realtor, I’m sure that I can help you figure out exactly what kind of house you want.