Spending that little extra for the "Forever" home, your thoughts?

[Alex K.]

Hey everyone,

This is one of my first few posts here. My wife and I are currently living in Orange County, California and we are looking to purchase our next home. We are being fairly picky and hoping we can find something we can call our forever home (Who wouldn’t like not having to move again, right?). Something we can foresee meeting anything our future might hold (Location, neighborhood, school districts, bed/bath, lot size, yard, slight fixer upper potential, etc). It turns out we are coming across a few that actually meet the criteria.

The issue is, our price range is 650-750k, and as you’d probably guess, the ones that hit our criteria are mostly on the 750k end, while the 650k ones look like they need close to 100k of rehab anyways. Part of me is wanting to wait and wait until that super discounted amazing house comes in at like 650 or 700k… but I don’t know if I’m being reasonable expecting that and will miss a great home while I wait.

After running the numbers, it’s a 300-500/month mortgage difference. Which, with mine and my wifes work, we can do. It’s not going to break the bank. Also, even though It’s not in our plan A, a future refi can easily fix that mortgage difference down the road.

What I am wondering is, when it comes to that “Forever Home”, the home you hope to be in for 20-30-40+ years. Does that 50k purchase price difference really matter? Will I look back in 30 years and be super stoked I got what I could for 750 or regret that I didn’t get that killer deal? I could be potentially buying at a housing market high, but then again, will it really matter in that long of a run? Orange County is very pricey and desirable no matter what the market is doing, so i don't see the real estate ever dying out around here. 

What are some of your thoughts? Has anyone been in a similar circumstance? That spent the little extra on the place they know will be the longer-term place?

Any feedback is appreciated! On a side note, being set up in a home for the future and not having to save for the next down payment means we can start saving for some out of state rentals, which is our long-term goal as well.

Thanks!