Assess my home purchase decision?

Question

- on the verge of buying a house for 545k

- make 70k per year (sole income earner)

- 200k+ credit line

- excellent credit (700+ score)

- absolutely no debts

I will put 300k down. Have some other savings as well (16k in savings, and 25k+ in other investments).

Why did I decide to take up a big mortgage?

- loved the house, it is brand new

- 3100+ sq feet

- in a growing suburb of Toronto

- there are two golf courses being built in the community, one of which is in front of the house and provides a spectacular view (the other is a 5 minute walk away)

- it is surrounded by houses that are 1 mil+ (this house is one of the cheapest ones in the area)

- school nearby, community fitness center being built

So what I want to know is, was this a wise decision? I plan on staying in this house for at least 10 years.

Answer 1

This depends a lot on your life style (wife?, kids?, do you tithe?, love to travel?).  

If you don't spend/waste a lot of money then $245k debt on a home where you have more than 50% equity is perfectly fine.

Answer 2

looks good on paper.  Have a local realtor research the area, make sure it is growing in value, not flat or declining.