People should buy a house that they want because it's worth it as a house affects so much of your life, according to First Quarter Finance.
Living in your dream home essentially improves your life.
Moreover, the monthly payment differential is minimal compared to the benefits that you gain. Consider a $200,000 house vs. a $500,000 house. At four percent interest rate, paying for the more expensive house would only entail a $477 increase in your monthly payment - a small price to pay compared to the excellent location, fine craftsmanship, and plenty of space that one gains for your lifetime and beyond.
The idea of buying your dream house is totally agreeable and delightful to anyone but people should make a balance effort in becoming cautious so as not to be financially wobbly in the long run.
While buying the house that you want should be your objective, this should not make you "house poor". That means sacrificing your health like eating ramen for regular meals or driving you to crime like stealing your neighbor's cable just so you can afford buying your dream house.
To be more realistic, Realtytimes provided tips on how to cut back on your expenses to allow you to buy your dream home.
First on the list is by avoiding eating out. This can allow a single person to save at least $1000 annually that translates to $2,000 a year for a couple.
Second is by trading your car. A house is more important than your car. You can opt for a cheaper car, consider leasing, or just selling your car, which is a major expense that can eat a large pie of your regular budget.
You can also opt to sell your old stuff that has no use including your unnecessary collection, antique furniture, jewellery, old electronics, and other things that you keep with no practical use but has market or commercial value.
Finally, try to crowdsource events that you are expected to spend money such as celebrating your birthdays or holding holiday celebrations. Instead of shouldering all expenses, ask your loved ones to share or contribute financially for the party and festivities.
