If you are reading this, it probably means you are getting ready to purchase a home. How exciting for you! Buying a house is a very big and important step in a person’s life. However, as a newbie to the housing market, you probably have many questions. The first one is most likely to be: should you buy a more affordable, smaller house first? Or should you aim high and purchase your forever home?One thing is sure. You must be wondering – starter home vs. forever home – what is best for you? Before you start house hunting, read on to find out which one you should opt for.
Prepare yourself for moving into your first home
You have decided to purchase a house and move into it – congratulations! However ready you may feel, keep in mind that it’s a difficult and overwhelming process. To ensure that everything goes smoothly, you should plan ahead. This way, you will be better prepared, and you won’t be caught off guard by any surprises along the way. Having a clear plan will help you stay calm during the process of moving and help reduce moving anxiety.
Do you need a starter home?
A starter home is typically a smaller house or an apartment that doesn’t necessarily have all the amenities you want. Why should you purchase a place that isn’t your dream home? A starter home is useful if you want to have your place but don’t want to rent a home. It’s a popular choice for young people and first-time homebuyers. It’s less expensive and,therefore, easier to get without having to take a loan. Although it may not be your dream home, it’s a good starting point.
Should you buy a forever home immediately?
To put it simply, a forever home iswhere you can imagine yourself living forever. If this is your first time purchasing a home, chances are that your dream home is out of your reach. A house with all the amenities you need is bound to be expensive, and it may be out of your budget. So, should you go ahead and purchase a starter home or wait until you have enough funds to buy a forever home?
Think about your life in a few years
Take a moment to imagine your life in, say, 10 or 15 years. Will you have children? How many? If you are unsure about the answers to these questions, you are probably not ready for a forever home. While it seems wise to get your life sorted out right away, purchasing a big home for only one or two people doesn’t make sense. Many of us can’t imagine our lives that far ahead. Who knows, maybe you won’t need that much space in the long run. Or, on the contrary, you will need much more space. If you decide to buy a starter home, you will have more time to think about these factors. Then, when the time comes, you can look for your perfect forever home.
Make a list of pros and cons
If you are still undecided about whether your first property purchase should be a starter or a forever home, make a list of pros and cons. Writing everything down will help you clear your head and reach a decision more easily. Granted, making such a list won’t be an easy task for everyone. We created a simple one to help you get an idea of what it should look like.
So, starter vs. forever home – What is the best option?
Pros of starter homes:
As mentioned before, a starter home is more budget-friendly. It’s one of the biggest reasons that many first-time homebuyers decide to purchase it first.
Opportunity to build home equity
Building home equity is important if you eventually want to buy a forever home. Over time, the value of your home may even increase – especially if you decide to upgrade it.
Cons of starter homes:
You won’t get everything you want in a home
When it comes to starter homes, you most likely won’t get everything you need. There are things you will need to give up and sacrifices to make.
Any alterations you make might affect the price when you decide to sell the house
Renovations or upgrades of any kind can affect the resale value of your home. While this can be a good thing, it’s possible that some alterations may affect the price negatively. You will need to choose wisely what kind of modifications you want to get done during your stay in the starter home.
Pros of forever homes:
You will not have to move again
It’s called a forever home for a reason. It will probably be costly to purchase, but once you do, you’ll be living there for the rest of your life.
You don’t have to limit yourself to the renovations and alterations
Since it will be a home you don’t plan to leave, you can let your imagination run wild and do all kinds of different modifications to it. Not needing to think about selling it down the line means you can relax and personalize your home however you want.
Cons of forever homes:
The price will be higher
The price of your perfect home is bound to be significantly higher compared to starter homes. However, if your financial situation already allows for it, you should think about making a purchase right away.
You might change your mind
Even though you may think that you have a solid plan for yourself, life tends to be very unpredictable. What if you get a job that requires you to move? Or your family expands, and you suddenly need more space? These are some factors to consider.
As you have probably guessed, there are many factors to consider when deciding what kind of house to purchase as a first-time homebuyer. Now you know the basic differences between a starter house and a forever home. Now it’s up to you to decide. Starter vs. forever home – what is best for you? Whichever choice you make, welcome to the new chapter of your life. We wish you the best of luck with your move.