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Why First-time Buyers Often Choose a Starter Home

Posted by admin on October 6, 2022
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Why First-time Buyers Often Choose a Starter Home

When you’re house hunting for the first time, your relatives might have told you that they started with a starter home. You might think that sounds like a bright idea, or you could think, why shouldn’t I get my forever home now?

But what exactly qualifies as a starter home? And how much money do you need to purchase one?

 

We’ll answer all those questions and more in this article.

 

So what is a starter home?

Starter homes are real estate properties typically smaller in size and an economical choice based on a buyer’s budget. They are ideal for first-time buyers. Starter homes can be single-family homes, townhouses, or condos. They typically don’t come with all the amenities that homeowners would like, but these entry-level homes serve a purpose.

 

A benefit of a starter home is to help someone build their credit history and build the funds necessary to purchase their forever home. New homeowners will live in them between two to five years before upgrading.

 

What are forever homes?

Forever homes are real estate properties most homeowners can see themselves living in for a long time. They are typically larger and an upgrade from starter homes.

 

Forever homes have the features and amenities buyers want and tend to include more square footage. Most of these properties are newer than starter houses, but forever homes are more expensive.

 

Forever houses are meant for owners who have wanted a residential property for more than a few years.

 

Who are starter homes for?

Starter homes are ideal for first-time buyers because of the affordability of acquiring one and lower property taxes. Additional cost savings come in the form of upkeep and furniture. 

 

Since entry-level homes are smaller, they require less upkeep and can save you on heating and cooling expenses. With a smaller home, you will need less furniture too. This is a considerable upfront saving. 

 

Finally, a starter home has the potential to become an investment property. An entrepreneur may choose to rent the property after they move into their forever home. This will offer another source of income.

 

Is a starter home worth buying?

It’s a question that a lot of people are asking nowadays. Everyone has their own opinion. But what people can’t deny is some of the benefits that come with purchasing a starter house.

 

If you can’t afford a forever home now, you should purchase a starter property. And that starter home has the potential to increase in value as you stay in it. When you buy your forever house, you can use the funds from selling your entry-level home to cover the costs. Starter homes can be worth buying!

 

Do your research

Make sure you research before deciding whether you should get a starter home. If you’re considering purchasing a home with your partner, discuss this step with them. 

 

Entry-level homes may not have enough space for your needs, particularly if you plan on starting a family. These first homes often need repairs since they are likely older properties. Be sure to get an inspection before you commit to it. Some starter homes are in less-than-desirable locations too. A lousy address may make it more challenging as a resale in the future. 

 

Ultimately, this will be a significant investment. 

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