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Real Estate
Reply to "What is it like to be “house poor”?"
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[quote=Anonymous]OP, it depends on how you define "dream house". If it's just the house itself that is perfect, I'm not sure that's enough to tie up all your money in it. You will be surprised how much your priorities change in just 5 years. I wanted to live in a very different sort of house when I was 33 than I do at 43. But if the house is in exactly the neighborhood where you want to raise your kids, and you like the local schools, and stretching will allow you to be in that neighbor hood with good public schools, I absolutely think it's worth it. Those are intangibles that are impossible to replicate. A house can be remodeled or even added to when you have the money. You can't change the neighborhood or schools without moving. Plus, if it's a good neighborhood with good schools, it will also probably gain in value faster than it would elsewhere, which means you could refinance at some point if you wanted to reduce your monthly payment.[/quote]
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