When buying a home for the first time, it is undoubtedly one of the largest purchases you will make in your lifetime. However, this doesn’t mean it has to be the only time you buy a home.
With mortgage rates at a new low and the Real Estate market booming, the possibility of owning a “starter home” is more likely than ever before. Is a starter home the right choice for you, or should you wait to save for your forever home?
A starter home is a house that you know will fulfill your needs for a handful of years, but you will start to outgrow. A “fixer-upper” can also constitute a good starter home.
By investing in a starter home now, you could even save yourself money in the long run. With interest rates being as low as they are now, your monthly mortgage can even be LOWER than what you are paying in rent currently.
Additionally, when it is time to say goodbye and move on up to your forever home, you have the option of selling your starter home or keeping it around as an investment property. Who wouldn’t want someone else paying their mortgage for them?
If you are planning on buying a “fixer-upper” as your starter home, make sure you research if the money you put into improvements will contribute to the home’s resale value.
Your forever home is where you envision raising a family and hosting countless holidays and family gatherings. This doesn’t mean you will live there your entire life, but you can expect to spend about 20 years or more in your forever home.
However, the cost for a home large enough to comfortably house a growing family requires a down payment that most young adults can not afford, even with a dual income. That is why many choose to rent while they save up for a large home purchase.
The plus side to waiting is that the larger your down payment is, the smaller your mortgage payments will be. Still, this could mean you risk waiting for the market to turn cold and missing out on the right opportunity to become a homeowner.
The middle ground
A good way to decide which home purchase you are ready to make, is to look at properties online. Select a home you would consider a good starter home, and one that would make a good forever home. If the price difference between the two could be saved up in a year, it is safe to say you can stand to wait it out.
However, if it would take several years and a few job promotions or raises to afford the difference, a starter home might be your calling. A small condo or townhouse just slightly outside of your desired commute may be enough to save up sooner rather than later for your dream home.
The most important thing to remember when shopping for your first home is to always go into it with an open mind. Sometimes, certain sacrifices are worth making for a better, and smarter, foreseeable future.
The world of Real Estate professionals is ever growing, so it is not uncommon to be confused by the different titles and job responsibilities. You might hear the terms associate, consultant, salesperson, broker, Realtor, agent – but what do these all mean? The main...
Sometimes, managing your properties yourself can be a bit stressful. The further into the Real Estate investing game you get, the more work you put onto your plate. A property management company could be a huge asset to your business. When is the right time to take...
It’s no shock that we have been living in a hot market recently. Even if you are not looking to sell your home anytime soon, the temptation arising from neighborhood sales and profits might have you a bit curious. The seller’s market is still going strong, but when...
Depending on your needs and reasoning's for your home purchase, there are many home features that will be making it onto your “must” list. But what about those features that you could do without? Many sellers try to get sneaky and raise the price of their home due to...
Usually, the number one reason a potential buyer starts their home search is because they are in need of more space. Whether it’s a first-time home buyer looking to leave behind their cramped apartment, or a current homeowner looking for more room to start a family,...
When buying a home that has been foreclosed on, instead of negotiating with the homeowner, you will be dealing with the bank or lender directly. This makes the Real Estate transaction different because the lender is no longer in the background. When a home has been...