I’m talking about dreaming big in California. Not the California dreamin’ of the Mamas and Papas!
So, you’re a home buyer! You’re looking for a new, or a different house and you have a budget. Let me tell you that you aren’t the only one. It doesn’t matter what financial strata that you are in. Low, medium or high income. Everyone has a budget and sticking to it can be very important.
But my Mother said something to me many years ago. She was the financial decision maker in our home and she bought and sold houses a number of times. In those day, mid-range homes were selling around $125 – $175,000. She said, “If I had just stretched the budget and spent $10,000 more, we could have purchased so much more house.” You see, ultimately, we found that we were outgrowing that last family home and my parents spent cash out-of-pocket money adding on another bedroom.
Besides needing to add on, the houses that had the pool, or the extra game room or extra bath appreciated a bit more and had much better resale overall.
My point is that dreaming big can make a big difference to you and your family just a few years down the road. And spending that extra $20 – $50,000 today at the current interest rates can mean an additional $100 to $285 per month in your payment. You could decide not to buy that car, or maybe not go out to eat so many times each month, or even give up your many weekly trips to Starbucks. And those extra features, space, storage areas, or acreage can mean many more $$ when you need to sell in the future.
So dreaming big in California can truly lead to “living large” with todays prices and interest rates. Don’t cut yourself, your family, and your future short with short-sighted thinking.