When you think of the constant use you will have from your electronics system compared to say, a swimming pool, it will pay to buy one that is of good quality and will last for years. A swimming pool can only be used in the hot weather, while your home entertainment system will be used 24/7.
What you spend must suit your taste and your budget of course. While you could spend up to 7% of your home's value on your electronic system, you might rather be content with a small unit of a few hundred dollars. Much will depend on your lifestyle and your home. There is no use buying a high-end sound system with all the frills if you have no room to put it. If your media room must also function as a rumpus or hobby room, then you may need to adjust your desires to fit the space.
The cost of installation must be taken into consideration and it will vary depending on whether you are building new or renovating. If you are building a new house, then it is much cheaper to install all your speakers, projectors, equipment racks and subwoofers at this stage and have them concealed in the walls. Renovating to install them can be more costly.
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