<prompt> Human: Financialy is there any cons to buying a cheaper home that will not serve your future needs? I own a home renovation business, and there potential for growth in the cheaper home.Im afraid the forever home will put financial stress on us. Are we better off buying the forever home?Edit: To elaborate, we will put down 35k. Have a 4 and 2 year old.Edit 2: Thankyou to everyone for their opinions and cementing my thoughts on buying the cheaper home. I d just like to point out that the main question is whether there are any cons buying a cheaper home as a stepping stone.  <response>: I agree with the other posts on getting the starter home. But to play devils advocate...The big drawback of buying a starter home thinking that youll move soon anyhow is that you need to pay closing costs twice, and youll pay a realtor 5 to sell the first house. If in 10 years you really plan on doing the starter home, then forever home thing, that could mean a few grand for the starter home closing 5 to the realtor of the sale price of that home in order to trade up. Thats not insignificant.Plus interest rates will probably be higher when you do trade up in a few years. Plus if houses appreciate they probably will, then the more expensive house will appreciate more quickly than the cheaper house. For example, if everything goes up by 10 over the course of 5 years, expensive house is 15k, whereas your starter home has only appreciated 8.5k. Note, if you think prices will fall, this will be reversed. All told, that adds up to maybe 22k 5k closing for starter 8.5k commission to sell starter 8.5k in appreciation you have to make up. That said, houses are more expensive than you think theyll be, so dont stretch. Buy the starter home. Get used to home ownership. 