a Guide on the Better Option between Starter Homes and Forever Homes for First-Time Buyers
Buying a house is not a cheap thing to do, and the median house price in the US is currently at $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.
You will gain various benefits when you buy a starter home. You will be able to get a starter home affordable. Younger individuals and couples who want to get on the property ladder quickly can find this alternative something possible to do. Secondly, it will be possible for you to move into the house soon because it is 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.
There are also various downsides of choosing a starter house. There will be more moving because a starter house is not a forever house. A lot of time, energy, and even money are spent when moving. You will need various upfront costs to make the home comfortable and in line with your preferences. Even if it may be fine structurally, the starter house cannot be the house of your dreams, and you have to spend to make it what you want. 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. Forever homes also tend to be larger than starter homes and can cater for growing families. 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. You will be required to spend a lot to purchase your dream home. 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. Purchasing a forever house also needs people who are committed to making that happen, and it may not work for someone opposed to commitment.
Based on where one is and what they want in life, they should make decisions that are suitable for them.
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