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I don't think so. Another perspective: that's 10% in today dollars. If you could travel back 20 years and build an OK house for $180K, or a great house for $200K, do you think that today you'd be wishing you'd gone for the $180K house?

1) As Rolf says, if it "values up", then you have little to be concerned about. 2) I think if it's your PPOR you should build what you're happy living in - within reason. The longer you plan on living there, the more I believe this is true. 3) Whilst no one "luxury item" is said to pay off...