House Hunting - how do you decide on price range?

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KenMasters

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My wife and I have been living in the same apartment for 15 years. This year however my wife took a new job in a new country, so we're currently hunting for a new home. Our personal economy has moved on quite a bit since the time we bought our current place and we're finding the options available to us quite dazzling.

We love our current place, it's not the largest, but it has a great layout and is well appointed - it suits the two of us. With the relatively low mortgage, quality of life is also high, with expenditure on groceries, entertainment and mortgage enjoying a roughly even split month on month.

Now that we're looking at new places though, our imaginations are running away with us, possibilities we could never consider in our current space, with prices in consideration steadily creeping up. How do you find the line between what you technically can afford and quality of day to day living going forward?
 
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