October 2024 marks one year since I purchased the most expensive house I could afford. Leading up to the purchase, I wrestled with uncertainty about whether buying such a home was the right move. For most, a home is the largest purchase they will ever make, bringing with it a mix of excitement and worry.
Some people are so anxious about making the wrong financial choice that they end up renting forever. It’s similar to those who, paralyzed by fear of stock market risk, hold too much cash for years. Decades later, they look back and wish they had bought more. If only they had consulted with a trusted advisor.
The reality is that no individual or couple needs more than a studio apartment and no family of up to four needs more than a two-bedroom apartment or home. Yet, driven by our desire for more, we often buy much more than we need. And that is when we can get into huge financial trouble.
In this post, I aim to assess whether buying a house I didn’t truly need was a wise decision. I want to help you decide if buying a nicer house might be the right or wrong choice for you, too.
Why I Bought A New House I Didn’t Need
We bought our current home because I believe the best time to own the nicest house you can afford is when you have children. With more people living under one roof, the home’s value increases as more family members benefit from it. The home’s cost is also spread out among more people too. Once the kids leave, the likelihood of upgrading to an even nicer home diminishes. If anything, you may want to downsize.
Another reason for the purchase was my decision to focus more on decumulating wealth after
