Buying a house is not a cheap thing to do, and the median house price in the US is currently at $280,000. One may have mixed feelings of excitement and daunting if they are first-time buyers. One may wonder which is better between buying a starter home so that they can get on the housing ladder quicker or if they need to wait longer so that they can purchase their dream home, which can also be referred to as a forever home. Discover the advantages and disadvantages of both herein.
Buying a starter home will have numerous advantages. Firstly, a starter home will be affordable. For younger individuals who want to get on the property ladder quickly, they may find this option attractive. Secondly, it will be possible for you to move into the house soon because it is a house that you can afford. You can also purchase a starter house as an investment or rental opportunity since it can quickly grow in value. When you are among the first to move into an upcoming area, the property may be worth exponentially more in the future when the place becomes a sought-after location.
There are also various downsides of choosing a starter house. There will be more moving because a starter house is not a forever house. Moving involves a lot of time and energy. Secondly, you will incur various upfront costs to make it a comfortable place to live in and to customize it to your preferred tastes. While it may be structurally okay, you will need various improvements so that it can be what you wanted to be since a starter house can never be the house of your dreams. Thirdly, you may experience trouble selling on a starter house, and the process of getting out of it can be long and arduous if no one wants the property.
You will attain different gains when you decide to purchase a forever home. The forever house will be your dream home, and you will have most of the things about it satisfying your personal preferences. A forever home will usually be larger than a starter home, and this will cater for a family that is growing. Therefore, a couple who is starting a family can have enough rooms and land for children and pets. A forever home will also give stability to the home buyers because they won’t need to make other housing decisions for a long time to come.
When you buy a forever home, you also experience multiple cons. Buying your dream home will need you to spend a lot of money. You may have to spend on down payment and mortgage, and you may have to wait many years to save up for this. The forever houses may also keep appreciating, such that you experienced decreasing affordability over time. Purchasing a forever house also needs people who are committed to making that happen, and it may not work for someone opposed to commitment.
Based on where one is and what they want in life, they should make decisions that are suitable for them.