I wish your friend a lot of good luck, she will need it! Emotional buy-in is dangerous, as it excludes the cold detached thinking. I think this is why she took you, to have a clear perspective. I agree that it's never good to stretch over your limits. I think that our desire to have a home might make us slightly emotional and it's dangerous. It's a lot of money and money once taken must be given back. I would definetely think it through long term and make a calculated decision.

I would personally prefer to live off grid. Free. In the middle of nature with all the modern ammenities. Independent and debt free.