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 the first-time buyer, buying a house can be both exciting and daunting. One may wonder which is better between buying a starter home so that they can get on the housing ladder quicker or if they need to wait longer so that they can purchase their dream home, which can also be referred to as a forever home. Get to learn the benefits and downsides of each below.
Buying a starter home will have numerous advantages. The first benefit is that starter homes provide affordability. For younger individuals who want to get on the property ladder quickly, they may find this option attractive. Secondly, you get to move in soon when you buy a house that you can afford. You can also purchase a starter house as an investment or rental opportunity since it can quickly grow in value. When you are among the first to move into an upcoming area, the property may be worth exponentially more in the future when the place 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, different upfront costs will be involved to make the place personalized and suitable for your 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. The other con is that you may have trouble selling a starter house, and you can face a long and tiring process to get out of it if no one wants it.
You will attain different gains when you decide to purchase a forever home. A forever house will be your dream house; thus, most of the things about it will be satisfactory to your personal preferences and comfort. A forever home will usually be larger than a starter home, and this will cater for a family that is growing. There will thus be enough space for pets and children, which makes a big difference. A forever home will also give stability to the home buyers because they won’t need to make other housing decisions for a long time to come.
When you buy a forever home, you also experience multiple cons. You will be required to spend a lot to purchase your dream home. You may need to save up for many years so that you can afford your dream house because of the requirement to pay down payment and mortgage. A forever house may also continue appreciating, thus causing decreasing affordability over time. Purchasing a forever house also needs people who are committed to making that happen, and it may not work for someone opposed to commitment.
Depending on a person’s current circumstances and aspirations, one should make the decisions that work best for them.