Great article by author Michael Lewis of The Blind Side fame regarding the perils of expensive housing. Even a very rich man like Michael Lewis couldn't keep up with renting a landmark mansion in his home town. Mr. Lewis' fun essay also documents the hidden costs of utilities, maintenance and furnishings for a much larger house.
I'm in a phase right now where many of my friends are selling their first or second home and upgrading into McMansion world. It is somewhat surreal for my husband and I to visit our friends/peers who have moved from reasonable rancher to gated community McMansion. Some of them bought during Florida's real estate bubble deflation so they got good deals, but it is still a whole different world. One of my friends, who moved into McMansion world in the last couple of years mentioned that she felt like she had to buy (or lease) a new car to keep up with her new neighbors.
My friends' homes are beautiful and sometimes its hard not to think envious thoughts about those new chef kitchens and especially the walk in closets. But, I have no desire to take on that kind of debt. I did have a refreshing conversation with a college friend recently and she is just a couple of years away from paying off her home in full. Great motivation for me as not having a home mortgage is a goal that is always in the back of my mind.
Great article and a situation where I find myself. We moved in 2009, took advantage of the housing bust and bought a 3800 sq ft home in a nice area. But it's expensive.
ReplyDeleteFive years later, we are so glad that our lowball offers on even nicer homes were rejected.
When we first moved in, there were only 2 neighbors. One had 2 Mercedes and other one a 5 series BMW. I drive a Toyota Camry.
As the neighborhood has developed, there is more diversity in cars and my Toyota doesn't stand out.
However, I still long to have our yard professional landscaped like many of my neighbors. Instead, I read landscape books/magazines and will get a Landscape plan and plant it myself.
On the bright side, I take comfort in having a mortgage in the bottom 10% for the neighborhood.
Tina