Should I Buy A Starter Home Or Forever Home?
As a first time buyer, one will get himself in a dilemma with what type of house to acquire. Some people will suggest getting a start home and some will say to procure a forever home. Before we start answering the question, let’s take a look into the difference between a starter home and forever home.
Starter home is a condo, townhome or single-family home that a first-time buyer can afford, but may grow out. Usually small and compact, starter homes meet the basic needs of many homeowners and are typically at the lower end of the price spectrum in their local real estate sector. They may be old homes, fixing-uppers or brand-new entry-level buildings.
A starter home probably doesn't have all the amenities you 're dreaming of having one day, but it's a good-natured home in the foreseeable future.
On the other hand, Forever home is one that will meet your needs for many years to come. Homes always come in all sizes and styles. There is no standard for what a forever home looks like , or how much it costs, because everyone has a unique vision of how and where they will live in the decades to come. A forever home could be a fix-up that a buyer plans to renovate into a dream home in their favorite neighborhood, or a rambling house where a couple planning a family can raise their future children. Forever homes aren't always lavish, but they typically make room for you to develop in a neighborhood where you want to sink your roots.
Since starter homes appear to be on the lower end of their market price range, it can take less time to save for a down payment. That could make it easier for you to buy and start building home equity earlier than if you waited until you could afford a home forever. Ideally, by the time you 're ready for a larger home, you can sell the starter and add the equity you've acquired to the next purchase.
Buyers often outgrown starter homes. They get married or have children, or they want more space for leisure, hobbies or home offices. Buying another house would include selling or renting out the base, paying closing costs on another mortgage, and coping with the burden and expense of moving.
With a home forever, you can settle in for a long time, enjoy extra space, and, unless something unexpected happens, don't think about moving for a long time. You can repair your house as you wish, without thinking about the satisfaction of prospective buyers a few years later.
A forever home often costs more than a home starter, so it could take longer to save for a down payment, which could delay buying and building equity. By the time you saved more money, home prices and mortgage rates may have risen, putting forever home out of reach again.
At the end of the day, the decision making is in the hands of the buyer. It is the responsibility of the buyer to weigh in all advantages and disadvantages of getting a starter home and a forever home. Moreover, the decision is totally dependent on the buyer’s procurement capability and needs.