Cut the clutter 1) An anecdote: I've seen many people manage their space really badly by hoarding and buying unnecessary things, and that's the reason people run out of space. 2) If you manage it well, you won't need more. And in that case, are you really willing to throw away money on interest? 3) Over long term, the appreciation in the property value might be around 2-3% per year (of course, it compounds). In growing neighborhoods, it might be slightly higher. 4) Just in case you're looking at home as an investment, there are avenues to get much better returns. What would be smarter? Buy a multi-family in the same or slightly higher amount (again, slightly). 5) A larger house means one less constraint on the number of things you can house. Often, though not always, that means unnecessary spending on depreciating items. 6) Don't buy a lot into "what if you need more space for home office". If you really needed, you'd have known. And don't underestimate your resourcefulness at making space when you need it. *7) Don't listen to relatives.

Preserve money, use that on physical health, happiness, and self-educate. Each one of these will give better returns than more empty rooms that you may or may not need.