A bigger house luxury purchase. So you need to compare it to other luxuries.
If you put 300k into a bigger house at 3% interest you are paying 9k a year to service that debt. Lets assume that the non interest portion is a wash compared to other investments. So your cost of having a bigger home is 9k a year plus another 500 in property taxes and 500 in higher utilities.
So the question becomes it costs you 10k a year initially and say an average 5k a year for 10 to 15 years to get a bigger house. So you are looking at between 50-75k in costs to get a bigger house. As well as the bigger house using up a lot of investment dollars.
So what would you rather spend that money on. Travel, House, Vacation Property, Retire Earlier, work less. So pick what will make you happy.
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