I guess it depends if the modest, simple place has decent heating etc. We lived for years in a small 2 bedroom villa unit when we first moved down here and it wasn't very comfortable at all. In a good area but no ducted heating and much too small. Freezing in winter and terribly hot in summer.
So much better when we could afford to get a nice house with decent heating/air-con. I don't live there anymore but I'm glad that at least my wife could at least have a good place to live and we can pass it on to my son.