Starter home purchases are typically meant to be a temporary home until your dream home comes down the line. A first-time home buyer typically finds it better to buy a starter home over any other type of home. They don’t really need to have all of the bells and whistles of an expensive home because they are, just as the name says, a starter home.
They are meant to get your family started in something better than a rental while still being a great place to call “home” for a while. Some people think it’s a waste because they want to buy a home and stay put, but others see the perk of a simpler starter home. Here is a look at the benefits of a starter home and some tips for buying one.
What are the benefits of purchasing a starter home right now?
The biggest perk of a starter home is the lower expenses. Your mortgage won’t be as high as that expensive dream home you turned down, plus your property taxes will be more manageable. Utilities will be lower since the house is smaller and you won’t be heating or cooling such a large area.
A starter home is going to gain appreciation faster. It will appreciate faster than a move-up home so a buyer that is hesitant to get a starter home should keep this in mind. When the housing market turned around in 2012, starter homes were the first to do well again.
Tips for buying that starter home
Keep in mind that a starter home is considered an entry-level home that isn’t meant to be your forever-home. Don’t get carried away on spending on implementing a ton of luxury amenities found in expensive homes and overspending; put your emotions aside and think of the dollars and cents you’ll save living in a simpler home for a while.
Make sure you’ve lined up your financing and have a pre-approval letter from a mortgage lender in the area. You’ll be easier to work with because agents will recognize a local lending institution rather than someone who used an internet lender.
Finally, when you search for your starter home, be flexible in what you’ll purchase. It may not have everything you’ve ever wanted but if it seems like a great home for your family for a while, it may be the perfect starter-home for you. You can always add on that deck you wanted or the garage, but having an affordable home in the perfect location is all that matters.