Buying a bigger house just allows you to park more of your net worth in real estate. As a diversification it makes sense. But also as you make more money the payment becomes less and less of your monthly income.
It’s not absurd. It’s just a different reason for buying a house.
mejutoco|3 years ago
I don’t understand how buying more of one thing is diversification.
Some idea that makes more sense to me is to buy 2 smaller houses, live in one and rent the other one.
This diversifies more and is an example that it can make sense not to buy the biggest house you can afford.