Your Dream Home doesn’t have to be the most expensive home on the block.
The higher the price of the home, the larger the home which creates 3 things to consider:
1 – costs are higher: both property taxes & jumbo loan rates are greater
2 – price / sqft will be higher with a smaller, mid-range home
3 – middle markets tend to be more stable in shifting markets and the cycle is about every 7 years.
In an article by the National Association of Realtors there’s more evidence supporting this position. I specifically believe you need to leave room to make improvements.
It’s best to buy your home within your means, for couples that means on one person’s salary. Whether the home is move-in ready or you plan to build equity by making improvements, the key is that you are going to put your own thumbprint on the house when you make it your home. You don’t need to buy the most expensive home on the block!