When it comes time to buy a home, there are so many options, making it hard to decide to decide which one you want. Some people prefer to start with a smaller home (also called a starter home), while others want to buy one home where they hope to spend the rest of their lives. They don’t want to have to move again because of the stress.
There are many reasons to consider both types of homes. In the end, it may come down to personal preference. Here are some reasons to buy a starter home.
1) It is cheaper to buy a starter home.
Since you are not planning on living in a starter home forever, you can buy a smaller house which is more affordable. You won’t need as much money as a down payment and your mortgage will be less, making it more cost-effective all around.
2) In fact, it might cost less than a rental.
When the interest rates are low, it might make more financial sense to buy a home instead of continuing to rent. You would be amazed at how low your mortgage could be, compared to renting an apartment or home for the next few years.
3) You get tax benefits when you own a home.
If you are still considering renting over buying a home, you should really think about buying a small starter home. There are many tax benefits and it can really pay off in the long-run.
4) If you still are not sure where you want to live in the future, a starter home might be perfect for you.
Many people don’t know where their future lies so a small home is enough for now. This allows them to pack up and move across the country if that is what they decide to do. They might even try a place for a few years before deciding that it is not the location for them.
5) Many don’t want to live in the suburbs until they have children so they are happy with a starter home that is closer to the city.
It allows many people to buy a home closer to work until they decide that they are ready to have children and want to live in an area that is better for them.
6) A starter home might be better for new homeowners due to the responsibility.
It takes a lot of work to maintain a home. The bigger the home (and more yard), the more work it is. Because of this, many younger people would be better off starting out small. Once they are used to taking care of a home, they can move onto a bigger home.
7) Many people use their starter home as an extra income when the time comes to upgrade.
They decide to rent out their starter home when they buy their long-term home. As long as you can find reliable tenants and their rent covers the mortgage (or a little more), it can be a nice income producer.
8) Some people buy a starter home, only for it to turn into their long-term home.
Even if it is small, you just might find that it is perfect for you and your family! Nobody will tell you that you can’t live in your starter home for the rest of your life.
Starter homes can be a great way to start. They cost less so it is often easier to find the money for a down payment, as well as the monthly mortgage. Even better, when you decide to move on, you just might be able to rent it out for a good extra income.
Besides, how do you really know what you need in the future? You might want to move across the country? Who knows if you will even have children (and will need a bigger home)? It can be hard to predict the future so it might be nice to find a house that is perfect for right now. Who knows, it might even become the perfect long-term home for you!
Need help finding a starter home?
Trelora real estate serves the Colorado Front Range, Summit County and Seattle Metro Area and our mission is simple: full service real estate for a fraction of the cost. When you hire a traditional agent to help you buy or sell your home, you pay that agent 3-6% of the home’s value.
When you hire Trelora, you pay one flat fee rather than a variable commission on the price of your home. You’ll also get best-in-class customer service. A team of expert agents who close hundreds of deals per year. And a proprietary technology platform that puts you in the driver’s seat and an average refund of $13,500 in Colorado and $18,000 in Seattle.