Mansions may face resale obstacles
|
|
|
|
McTaxes. It's hardly news
that municipalities from coast to coast have been rapidly reappraising
and reassessing homes to capture revenue based on "bubble"
values. Not good news if you own a McMansion.
"I think property taxes are getting to be a
huge factor," says Gauer. "Cities and towns across North America are
scurrying to bring real estate appraisals up to date so they reflect currently
inflated values. For many homeowners, the tax bill is more than doubling."
McInvestment. As the housing
market slows to a crawl, the demand for McMansions as an investment
has declined. "An obvious reason is the desire for people to
have a larger amount of their net worth invested in real estate
has gone down," Lawler says. "You would expect that the
larger homes are going to have less home price appreciation, and
possibly more home price depreciation, over the next decade than
would be the case for the smaller homes. There is a tendency for
people to focus on how much housing they actually want."
McResale. Simply put,
who's going to want my McMansion? The buyer pool may be drying up
as boomers downsize for retirement and Gens X and Y eschew size
for more modest, versatile modern spaces they can afford. If you
built a much larger home than others in your neighborhood, it may
take you additional time to find a buyer.
Ahluwalia recently polled 50 select architects for
an NAHB study, "The Home of the Future." The consensus
was that America's new home aesthetic emphasizes upgraded amenities
(premium countertops, hardwood floors, heated flooring, Sub-Zero
refrigerators), increased functionality (larger and more garages,
multiuse rooms), higher ceilings and improved light (more windows,
recessed lighting), all in a footprint of about 2,400 square feet.
"Previously, more people were saying,
'We want space. We'll add the features later on.' Now, a lot of people are saying,
'We want features.' That is the main difference," says Ahluwalia. That
said, he expects McMansions to remain a viable and even desirable option well
into the future, even if it takes longer to find the right buyer. The reason?
It's as simple as human nature. "Why do people buy huge
houses? Because they can afford it. It's the same as asking why do you buy a $90,000
Mercedes when the same function can be provided by a $30,000 car? I can afford
it, I like it and I have enough to spare. It does not have to do with the functional
need of the space. If the lifestyle can afford it, it's a good investment." | 
