MTG
Caught the Bug
I'll play...
I think it depends on what your objective is and your time horizon. I didn't read anything about this being your dream home so I'll ignore that little fact that Overlander added. But, generally if real estate in Colorado is anything like it is in Nevada I would be very cautious on buying anything at the moment. If your plan is to invest in real estate as a means to building wealth/capital that is a good means of achieving the objective.
I'm wouldn't be concerned as much as spending 1.5 times more then you "want to spend" as opposed to what you have calculated to being what you can reasonably afford given your income and other expenses, and, more importantly, with what makes sense from a financial perspective given the speculative nature of real estate investments. An easy question to ask yourself is, "if I spend 1.5 times more than I want to, and the market takes a dive and I have to hold the property for 5-10-15 years before selling it, would I be okay financially over that period of time?" If not, I wouldn't do it. Same goes for just buying a house in general. Trust me, it is not a good feeling to be upside down $250,000+ on a piece of real estate. :icon_crazy:
I think it depends on what your objective is and your time horizon. I didn't read anything about this being your dream home so I'll ignore that little fact that Overlander added. But, generally if real estate in Colorado is anything like it is in Nevada I would be very cautious on buying anything at the moment. If your plan is to invest in real estate as a means to building wealth/capital that is a good means of achieving the objective.
I'm wouldn't be concerned as much as spending 1.5 times more then you "want to spend" as opposed to what you have calculated to being what you can reasonably afford given your income and other expenses, and, more importantly, with what makes sense from a financial perspective given the speculative nature of real estate investments. An easy question to ask yourself is, "if I spend 1.5 times more than I want to, and the market takes a dive and I have to hold the property for 5-10-15 years before selling it, would I be okay financially over that period of time?" If not, I wouldn't do it. Same goes for just buying a house in general. Trust me, it is not a good feeling to be upside down $250,000+ on a piece of real estate. :icon_crazy: