any buyers face the question should I buy smaller than I can afford or a larger home that I can afford but is at the higher end of what I can afford. the answer to this is complex and very personal but here are some things to consider:
If I buy smaller:
1. More affordable so better cash flow and safer if unexpected bills or income decreases occur
2. Less money for utilities
3. May have to move sooner if family grows
If I buy larger:
1. More expensive so riskier for cash flow
2. More money for utilities
3. Can expand household without having to move. This may be important if conditions are not favorable for selling in the future or if interest rates are much higher in the future.
There is no way to know what the market will look like 3,5, or 10 years from now, so there are always going to be risks. The important thing is to determine which risks are more comfortable for you.
I can say that I have visited a number of new home developments recently. Fusion and Fair Oaks in Sunnyvale and Toscana in Santa Clara. At all of these developments the larger homes are selling faster and the builders built more smaller than larger homes. So, in general, you may get a better deal, or at least an easier buy with the smaller purchase, but the larger homes may be an easier resell, if the popularity of larger stays the same.
If you have any questions about buying or selling homes in Santa Clara or San Mateo counties, please feel free to contact me.
Marcy Moyer
Keller Williams Realty
www.marcymoyer.com
marcy@marcymoyer.com
650-619-9285
D.R.E. 01191194
Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Short Sales and Trust and Probate Sales
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