Should You Buy a Starter Home Before Your Forever Home?
The Pros and Cons of Starter Homes and Forever Homes
If you’re trying to decide whether to purchase a more affordable starter home or your forever home, there are a few things you’ll need to consider. First, think about how long you plan on staying in the home.
Another thing to consider is your current financial situation. If you have extra money saved up and feel comfortable with taking on a larger mortgage, purchasing your forever home may be the right choice for you. However, if you’re still working on saving up for a down payment or don’t feel comfortable with a large mortgage, a starter home may be a better option.
Purchasing a starter home now and then upgrading to a larger home later may not be the best financial decision since you’ll likely have to pay for two mortgages at once. If you think you may want to move soon, a starter home may be the best option. For help making the most suitable decision, speak to the experts at Tonya Peek Real Estate Group. They can help make these tough decisions much easier.
Pros of Buying a Starter Home
- You can build equity more quickly since starter homes appreciate at a faster rate than larger homes.
- Starter homes are usually more affordable, so you’ll have more money to save or invest.
- If you only plan on staying in the home for a few years, purchasing a starter home may be a better financial decision since you won’t have to pay for two mortgages at once.
Cons of Buying a Starter Home
- If you start a family or your needs change, you may outgrow your starter home quickly and have to move.
- Since they’re usually smaller, starter homes often don’t have all the features and amenities that larger homes do.
Pros of Buying Your Forever Home
- You won’t have to move again, so you can save money on things like moving costs and real estate fees.
- Since forever homes are usually larger, they often have more features and amenities that starter homes don’t.
- It may take longer to build equity in a forever home since they appreciate at a slower rate than starter homes.
Cons of Buying Your Forever Home
- If you’re not ready to settle down, you may feel stuck in one place.
- 21 Oak points out that forever homes are usually more expensive, so you’ll need to have a larger down payment saved up.
- If you’re not comfortable with a large mortgage, buying a forever home may not be the right choice for you.
Insuring Your Home: What Does It Cost?
The cost of insuring your home will depend on a few factors, including the value of your home, the age of your home, and the location of your home. If you live in an area with a high crime rate or natural disasters, you can expect to pay more for insurance than someone who lives in a safe neighborhood. The type of home you have will also affect your insurance costs.
In addition to getting homeowner’s insurance (which covers your home structurally), do your research on available home warranty plans. You’ll likely find that a home warranty is indeed a smart investment. This type of warranty will help cover the cost of electrical and plumbing repairs. Additionally, home warranties can pay for appliance repair or a replacement. Just make sure you read home warranty reviews online to make sure the company has your best interest at heart.
Choosing between a starter home and a forever home is a tough decision. So take a look at where you are in life, research mortgages, invest in a home warranty, determine what you want, and whether or not “planting roots” makes sense right now. Once you know where you stand, you can get started — whatever you choose!
Tonya Peek Real Estate Group understands what buyers and sellers need, and has the experience to get you what you want. Call 972-674-3888.