So you’re ready to buy a home. Do you want a starter home to get you through the next few years or a forever home you can envision yourself in for longer? There are many things to take into consideration before you make your purchase.
Funding
For many prospective homebuyers, one of the first considerations is cost. Before you begin to debate between starter and forever homes, consider exactly what you can afford. Many home affordability calculators are available online to give you ballpark figures. However, if you don’t have the traditional 20% down payment available, speaking to a lender and getting prequalified may be beneficial. This can make you aware of programs you may be able to take advantage of, such as VA, FHA, rural housing loans, or other loans and grants.
Wants and Needs
In addition to funding your home purchase, decide what features you want and need in a new home. For instance, a small family may consider one bathroom to be sufficient while a larger family probably considers two bathrooms a necessity. A starter home must at least check all the boxes for things you need, while a forever home often checks most of your wants and needs.
Comparing Pros and Cons of Starter Homes vs Forever Homes
Before you make a decision, think of the pros and cons of each potential purchase.
- Starter home pros. Starter homes require a smaller investment. Since it likely has fewer bells and whistles, it may require fewer upkeep costs. Plus, you’re investing in your own home instead of dumping money into a landlord’s pockets. When you decide to upgrade, you can either sell or rent the property.
- Starter home cons. Conversely, a smaller price tag probably means a smaller space. Starter homes are usually older. They may need repairs or need things replaced, which represents additional costs. In addition, it can be difficult to know you have to go through this process again in the future, with the added stress of renting or selling your home as well.
- Forever home pros. Beginning your homeownership adventure in your forever home means you can establish yourself in a neighborhood and put down roots. Your home is likely to be larger and more luxurious, allowing you room to grow. Additionally, you can lock in low interest rates on a mortgage, and you avoid the hassle of having to move and go through the process again in a few years.
- Forever home cons. A larger home with more amenities costs you more. If you don’t have the money you need right now, you may have to wait to buy until you can save up additional funds. If you end up needing to move in a shorter time than you expect, you may not have enough time to build equity and may lose money on the sale of your house.
Making a Choice
Knowing what choice to make is obvious for some families and difficult for others. Take some time to consider your options. To find some unique options for both types of homes, try a search on modmodz, and see what’s available.
About the author:
Suzie Wilson is an interior designer (and will very soon be a published author), who created Happier Home as a side project to help people near and far learn how to enhance their homes so that they’re picturesque and peaceful.