Hi, fine folks at /r/financialindependence, I hope you are well!

If you are building a house and have the money, is it worth paying premium for a premium location and premium build quality, for the sake of having a smarter investment?

I think there is a lot of value in building a commodity house in a regular place. You strengthen frugality, avoid lifestyle inflation, avoid one-itis with your house, end up with more money, and send the right message to your kids. There is one point that I wonder about, though.

If you have a place with breathtaking views, many natural resources and wealthy neighbors, won't it hold/increase its value better than the commodity house? I ask because I have no idea how real estate works, and it could, in theory, go both ways.

In a crisis, excessive supply for the commodity house can make its price drop, but insufficient demand for the premium house can make its value go down, too. In prosperity, the premium house will be more exclusive, but the money you spent on it could have been used to invest in stocks and have a greater return.