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6 Mansion Problems You’re Glad You Don’t Have To Deal With

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Who hasn’t dreamed of living in their own mansion, a palace of their dreams? Imagine all that luxe space, soaring ceilings, and room to throw fabulous parties!

But it turns out, the grass isn’t always greener: Owning or living in a mansion—typically defined as 5,000 square feet or larger—isn’t always as glamorous as it seems. In fact, it can sometimes be more trouble than it’s worth. In many cases, buying a mansion can quickly spiral into “more house, more problems.”

So before you start saving up for that (massive) down payment, here are six downsides to consider before you make an offer on a mansion. (You might just be better off in that cute, little Craftsman.)

1. Shouldering the high cost of maintenance and upkeep

Least surprising info of the day: You’ll be spending plenty of your money on mansion upkeep, including (much) higher utility, heating, and lawn care costs.

“The larger the property is, the more there is continually [to] keep up with—something always needs attention or repair or replacement,” says Cara Ameer, a real estate agent in both California and Florida. “Money is continually going out the door for something.”

One method often used to calculate how much to set aside for maintenance on your home is the 1% to 4% rule. That means homeowners should set aside 1% to 4% of their home’s value each year for maintenance. (The exact percentage you’ll use will depend on the age, location, and condition of your home.) So for a $2 million mansion, you’re looking at $60,000 a year in upkeep.

Don’t forget, rapper 50 Cent was reportedly paying $70,000 a month to carry his 50,000-square-foot house in Connecticut—before he declared bankruptcy.

2. Having more entry points for burglars to get in

“Mansions typically have more points of entry into the building and property, and it can be easier for burglars to navigate around blind spots to avoid being seen,” says Kristin Bolig, CEO of SecurityNerd.

As a result, living in a mansion often means installing a comprehensive and sophisticated security system with video monitoring.

A high-end smart home system that regulates lights, security, and locks, as well as the thermostat, starts at $10,000, according to HomeAdvisor. And that price can surpass $100,000.

3. Paying high property taxes

Once you’ve saved up the thousands for a down payment on a mansion and managed to move in, don’t forget to budget for the sky-high property taxes you’ll be paying for as long as you own the home.

“Property taxes can eat you alive,” says Alicia Chmielewski, who specializes in luxury real estate auctions. “I’ve seen mansions that are $1,000 per day just in property taxes alone.”

4. Hiring a housekeeping staff

More square footage means more rooms to clean and more carpets to vacuum. The idea of six bathrooms might have sounded amazing—until the moment you find yourself scrubbing six toilets.

According to HomeAdvisor, hiring someone to clean a 4,000-square-foot home costs around $240 a month. For an 8,000-square-foot house, you’re looking at $480.

5. Furnishing all the rooms

Anyone who has ever moved knows the echoing sound of a large, empty home. To avoid the cold, desolate feel of a vacant mansion, you will need to think about how you’re going to furnish the many rooms.

“Having a big house always seems cool until you remember you have to fill it up with furniture and other items so that it doesn’t look oddly blank,” says Vicky Noufal, a real estate broker in Virginia.

“Let me tell you, that will cost you a great deal of money,” she says. “And the cost of filling the whole space can become an additional burden.”

In general, you can expect to pay anywhere from $1,500 to $31,000 or more to furnish a living room alone.

That price skyrockets for a mansion, which not only has more bedrooms but also bonus spaces such as dens, finished basements, and game rooms.

6. Paying the ‘mansion tax’ if you sell

If you ever get sick of all your mansion problems, you’ll have to face one more when you sell: the transfer tax, aka the “mansion tax.” Most states base how much you’ll have to shell out on the value of the home.

For example, if you sell your home for more than $1 million, you’ll have to pay Uncle Sam 1% of the sale price—$10,000. So the more your home is worth, the more you’ll hand over to the IRS.

The post 6 Mansion Problems You’re Glad You Don’t Have To Deal With appeared first on Real Estate News & Insights |®.

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