Over or Underspending
Some people spend more than they can afford when buying a house. Equally painful is the mistake of buying the cheapest possible house and then suffering through its shortcomings.
I have no intention of stating how much anyone can afford for a house. This is a very personal decision. There are guidelines of monthly averages that lending institutions use for housing expenses. But - like the "height/weight" charts printed on scales - these are only averages.
Don't hold back if you feel you can exceed the guidelines. When you are willing and sufficiently disciplined to economize on other expenses, you can get a better house than the average calls for. A good house may seem costly, but the rewards are well worth it. Investing in a house that's a little more expensive gives you an excellent inflation hedge while your whole family enjoys a better place to live. And often, the resale opportunity is brighter.
