Your price range should be determined by your Money Goals.
Your Money Goals are simply the level of ‘surplus monthly savings’ and ‘available funds’ that you would like to have after you settle on your next property.
Most property buyers base their purchase price on loose estimates, like borrowing capacity (as determined by a lender) which we liken to placing a wet index finger in the air and deciding which way the wind is blowing!
Research undertaken on personal happiness suggests that the amount of money we save, and the amount we have in the bank at any time, has a major impact on our quality of life and relationships. Setting Money Goals is personal, important, and should be considered prior to your purchase. A critical consideration for most property buyers is how much do you commit towards your home V’s, how much do you commit towards investing, and in what order? There is no binary answer to this question. Everyone has unique personal values, and goals.