Spend as Little as Possible on Your Home

by Debbie Vasen | More from this Blogger

06 Sep 2007 02:06 PM

To really maximize your investment and improve your overall financial picture, you should actually spend as little as possible on your home. Instead of finding out the maximum your mortgage broker will allow you to borrow (as so many people do), you should figure out the minimum house that will satisfy your needs.

Not only do homes in the lower price points tend to increase in value the most, they also allow you the most disposable income in reduced house payments. This additional money each month can be invested in more profitable endeavors, or simply allows you to live with more breathing room.

As people, we tend to want the most extravagant homes we can buy. With this wish comes a hefty price tag. Instead, set your sights on a more reasonable but still elegant home and you can enjoy your lifestyle while maintaining a healthier checkbook in the process.

Along this same line of thinking, if you can't buy the home that meets your needs the best - at least without stretching your wallet - it is actually better to buy a smaller, less expensive home at first and move up later. Building equity with a manageable home loan will enable you to trade up in a more comfortable financial fashion. This is especially true with smaller, cheaper homes in nice neighborhoods. While space may be a pinch for a few years, the tight living will end up helping you to move into nicer quarters quicker and with less of a mortgage.

Generally speaking, try to buy a little less than you need and build up slowly with your home purchases. Housing is one of the largest categories in your budget and you want to get some good value for the expense. It also doesn't do you much good to stretch your mortgage payments so far that you end up in poverty simply to live in the house of your dreams.

Related Articles:

*Buying a Home

*Where Housing is Least Affordable - and Prices are Still Rising

*Paying Ahead

Learn more about Debbie Vasen

Debbie Vasen is a published web content editor and writer, as well as a freelance writer for various print publications. In addition to blogging at Families.

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