Whether you and your partner are newlyweds or have been together for years and already started your family, when it comes to buying a home for the first time, you have to decide if a starter home or forever home is the best option. Which is right for you depends on several factors. If you are looking for a home, here are some factors to consider.
Is a Starter Home the Right Option?
A starter home is usually a first home that is easier to afford. For potential homebuyers who are anxious to own property and stop paying rent each month, buying a starter home makes sense.
In addition to this benefit, starter homes are usually less expensive to maintain. A starter home is generally smaller than a forever home, and as a result, maintenance is less expensive. You also have the added advantage of paying less for property taxes. Taxes are generally based on the sale price of the home. Your energy costs are also lower because there is less area to heat and cool.
There is a potential drawback though. How successful you are in selling your home for profit in the future depends largely on the area and pricing. If your home is not in a desirable area or the pricing point is not right, you could end up stuck with the home.
It is important to note that you can lower the risk of not being able to sell the home by carefully researching the area before buying. A real-estate agent can be helpful in pinpointing properties in the right neighborhoods.
When Should You Choose a Forever Home?
There are certain circumstances in which you should consider a forever home as opposed to a starter home. For instance, if you have the funds available now to afford your dream home without experiencing financial hardship, buying your forever home now could be the best option.
If you already have a family or plan to start one in the near future, selecting a forever home ensures that you have the space needed. In contrast, if you select a starter home, you will probably have to move once your family grows.
Buying your forever home now might not be the best move if you are unsure whether or not you are committed to staying in it for a long period of time. Homes take time to appreciate value. As a result, if you end up selling within a short period of time of buying, you could miss out on a nice profit.
A real-estate agent, such as one at West Charter Real Estate, can help you assess your and your family's situation and determine whether or not a starter or forever home is the right decision now.