Comparing 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. For younger individuals who want to get on the property ladder quickly, they may find this option attractive. You also get the benefit of moving into the home quickly because it is something you can afford. Thirdly, a starter house can serve as an investment because it can grow quickly 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.
There are also various downsides of choosing a starter house. There will be more moving because a starter house is not a forever house. Moving involves a lot of hassle and is time-consuming. 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. 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.
Buying a forever home will avail multiple benefits to you. 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. Thus, couples who are starting a family can have enough space for children and pets. A forever home will also provide stability to the homeowners since they will not need to make further housing decisions in a long time.
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 will need to spend on down payment and mortgage, and you may need to save up for many years so that you can get here. 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.
One should choose what works best for them depending on your current circumstances and where they aspire to be in the future.
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