Does it make sense to buy a more expensive house?
Why You Should Not Buy an Expensive House.
The findings show that the values of the most affordable homes increased by: 8.5 percent over the past year, compared with 3.6 percent for the most expensive homes.
44.4 percent over the past five years, compared with 26.6 percent for the most expensive homes.
Why you should buy a cheap house?
Faster, easier payoff of your mortgage
The less expensive home will mean a smaller mortgage. And that means it will be far easier to pay off your mortgage much faster. Lower house payments will mean that you’ll have more money to make extra principal payments to accelerate the payoff the loan.
Is it bad to buy the most expensive house in a neighborhood?
Buying the most expensive home in the neighborhood might give you a nice space, but that doesn’t mean it’ll be perfect. But if you make home improvements, you’re less likely to increase your home’s value in the process. If it’s already priced high for the neighborhood, there may not be any more “up” to go.
Is it better to buy a cheap house first?
Higher Cost Than Renting
Although starter homes are cheaper than larger homes, they still cost more than many rentals. You might be better off continuing to rent and investing the extra money so you can put it toward your forever house later on.