Housing

Why You Should Buy The Worst Car and House

There are some things to consider in buying a car and a house.  For a car reliability and safety features are important considerations.  When buying a home being in the right location and near good schools usually is worth paying up for.  After the basics are met many people tend to spend extra for upgrades in each.  Just remember that the more you pay for a home or car the more you pay in additional recurring costs.

For a home you will pay property taxes every year that is based upon the purchase price or market value of your home.  The more expensive your home, the more you pay.  Maintenance is another factor.  The larger the home is and the more custom features it contains increase the amount of money that will be spent in upkeep.

A car is no different.  You must pay registration and insurance every year.  Both of these amounts typically are assessed in relation to value of the car.

A side note about Land

The one area of a home that may be worth paying extra is in the land value.  A large lot, or scenic view will cost more, but may well be worth it.  Many people do not realize that the real value in real estate is in the dirt.  The structure as discussed earlier needs to be maintained over time as it is a depreciating asset.  However, the land typically does not need a lot of upkeep and is almost indestructible.  The real estate appreciation over time is largely derived from the land.  Therefore, the increased costs of property taxes for premium land generally will be made back with a future sale.

Closing

Remember you are not your house, car, or job.  Your identity is within yourself.  If these things are important to you it is fine to spend for them, but just know the costs involved in the upgrades.

 

 

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