Some people think it's a great idea to buy all the house they can afford because appreciation will guarantee them a big nest egg. Not so fast. Houses with price tags exceeding $500,000 or more not only cost a lot in monthly payments, but owners pay high amounts in upkeep and taxes. While many of those expenses are tax deductible, do you really expect to stay in the same home at sixty-five? Are you sure you will be able to sell it in a pinch?

It might be best, depending on your situation, to go with a more modest home you can pay down over time and invest the difference at the same time in stocks and other investments that might provide a higher return. Keep in mind that a good average annual number for home appreciation is 5 percent — and you can probably do well by diversifying where you invest your other dollars.