A lot depends on a person's income, obligations, goals and desires. Some people are comfortable sinking a lot into a house and forgoing outside entertainment or new cars. Others would be miserable if they couldn't go to every concert that comes to town. Those who are considering buying a house that will stretch their budget should remember to factor in the extra expenses of owning more expensive homes. Taxes and insurance are higher.
Bigger houses require more furniture, and some come with hefty homeowners association fees.
Choosing to buy the most expensive house you can afford means sacrifices may be necessary elsewhere, Schiller said. It could mean no vacations, public rather than private school for the children, not saving for college or retirement, fewer restaurant meals or driving a car long after it has been paid for. For the Jacobsens, it was easy to choose to buy a modest home. St. Petersburg Times. All rights reserved.