a Guide on the Better Option between Starter Homes and Forever Homes for First-Time Buyers
It is not cheap to buy a house, and the current median price for a home in the US is $280,000. For a first-time buyer, the thought of purchasing a home is an exciting, but daunting prospect. You may be wondering if it is better to buy a starter home and get on the housing ladder quickly or to wait longer to purchase a forever house, which is your dream home. Get to learn the benefits and downsides of each below.
You will gain various benefits when you buy a starter home. The first benefit is that starter homes provide affordability. Young couples and individuals can prefer this option when they are seeking to get on the property ladder quickly. Secondly, it will be possible for you to move into the house soon because it is a house that you can afford. Thirdly, a starter house can serve as an investment because it can grow quickly in value. When you move only into an upcoming area, it may be worth much more in the future when the area becomes a sought-after location.
Choosing a starter house will also come with multiple disadvantages. There will be the need to move since the starter house is not somewhere you will live forever. A lot of time, energy, and even money are spent when moving. Secondly, you will incur various upfront costs to make it a comfortable place to live in and to customize it to your preferred tastes. A starter house won’t be the house of your dreams, and you will need to spend so that you can make it more comfortable for you. Thirdly, you may experience trouble selling on a starter house, and the process of getting out of it can be long and arduous if no one wants the property.
You will attain different gains when you decide to purchase a forever home. The forever house will be your dream home, and you will have most of the things about it satisfying your personal preferences. When you have a growing family, a forever home will be suitable because the houses are generally larger than starter homes. Thus, couples who are starting a family can have enough space for children and pets. Thirdly, a forever home provides stability to the buyer because there will be no need for further housing decisions for a long time to come.
There are also multiple disadvantages of purchasing a forever home. Buying your dream home will need you to spend a lot of money. You may have to spend on down payment and mortgage, and you may have to wait many years to save up for this. A forever house may also continue appreciating, thus causing decreasing affordability over time. Anyone who is averse to commitment should also not think of choosing a forever house.
Depending on a person’s current circumstances and aspirations, one should make the decisions that work best for them.