I am shopping for a first home. Based on income, and estimates of the monthly mortgage, tax, and insurance payments, I can afford a house that is $180,000 with 30 years. But in my area, such as house is huge, and has unnecessary rooms.
Since I don't need such a large home, and don't see any change to that need, a $60,000 home is sufficient, at 1/3 the cost.
I can see several advantages to buying a smaller home, where payments will be minimal. Thinking long-term, though, is there any wisdom suggesting it is wiser to pick the house I can afford, instead of one below my ability? In the long run, is there some likely problems that would cause me to regret not buying a larger house?