All of the experts these days say that you shouldn’t even consider going over your budget, even a little, when buying a home. For a lot of people that’s a good piece of advice. But not everyone or every time. Sometimes you should “stretch” to buy a better home. So why and when is this a good idea?
First stretching your budget a bit will get you a home in a better location. That can be very important if you are worried about things like crime, resale value or proximity to a job.
Saving wear and tear on a $20,000+ car for an extra $10,000.00 should be a no brainer. Saving the worry about break-ins, muggings or worse should be a no brainer. Getting more than you purchased your home or ensuring higher equity should be a no brainer.
Stretching for better amenities should also be a no brainer. Again, spending about $10,000 more to get the kitchen or bath you want now instead of spending $30,000-$60,000 or more later should be a no brainer.
So when is it a good idea?
Well that depends on you, but if you’re a newly married couple that is planning for a family, stretching to get into a better school district would be a good reason to stretch.
Getting a starter home in a better neighborhood for the resale value would mean it is a good time to stretch.
One caveat, be super careful about the financing and do your due diligence. If you’re going to try to stretch, be sure you can afford it now and in the foreseeable future.