Choosing Between a Starter Home and Your Forever Home
August 2022
by Amy Collett
amy.collett@bizwell.org
House hunting can be an emotional process, and it’s easy to immediately envision yourself in a home when it feels right. Your feelings may lead you to debate whether you should buy a starter home or your forever home. According to research, 43% of homeowners plan to live in their first house for 16 years or more. Still, there are many reasons why a starter home may be the better option. Consider the following pros and cons of each, courtesy of Ayala Realty Team.
Pros and Cons of a Starter Home
Pro: It’s more affordable. Money is one of the most common reasons why people opt for a smaller starter home rather than their forever dream house. Although money constraints may seem like a bad thing, opting for a more affordable home may lessen monetary stress in the long run.
Con: It’s smaller. When you spend less, you get less. If you decide to go for a starter house, you’ll likely be contending with less square footage and fewer rooms. This can be a challenge, but it’s also an opportunity to downsize your stuff.
Pro: It may be a source of income. If you don’t plan on staying in your starter home forever, you could eventually rent it out and turn it into a source of income. This is ideal since smaller starter homes are often easier to maintain.
Con: It might not be easy to sell. Although the ability to rent can be a benefit, it’s not for everybody. If you’re dead set on selling, you may have a harder time than you would if you opted for a bigger home. It may also need more repairs that further make it difficult to sell.
Pros and Cons of a Forever Home
Pro: You can put down roots. Everybody wants a place to call home. You want a community with friends, neighbors, and loved ones. It’s much easier to cultivate this when you know for certain that you’ll be staying in your current home long-term.
Con: It’ll cost more. You might be prepared to put down roots, but are you ready for the higher price? When you choose a home that you plan to stay in forever, you’ll likely be paying for a higher mortgage. When you apply for a mortgage, your loan is determined by your income, credit, and employment. If these criteria don’t qualify you for a sufficient loan, your forever house may be out of reach.
Pro: No more moving. Nobody likes moving, and it’s even harder when you have a family in tow. A forever home allows you to stop relocating and simply focus on your family. The additional space means that you’ll be able to grow your family, too, if the time is right.
Con: There will be more upkeep. More upkeep will come along with the additional square footage. This can be a hassle if you don’t have the time and resources to tend to the tasks.
Regardless of whether you choose to pursue your forever home or settle for a starter home, you should research mortgage rates to find the best loan. This can make a big difference in how much house you can afford and how much your monthly payments are.
Photo by Unsplash
by Amy Collett
amy.collett@bizwell.org
House hunting can be an emotional process, and it’s easy to immediately envision yourself in a home when it feels right. Your feelings may lead you to debate whether you should buy a starter home or your forever home. According to research, 43% of homeowners plan to live in their first house for 16 years or more. Still, there are many reasons why a starter home may be the better option. Consider the following pros and cons of each, courtesy of Ayala Realty Team.
Pros and Cons of a Starter Home
Pro: It’s more affordable. Money is one of the most common reasons why people opt for a smaller starter home rather than their forever dream house. Although money constraints may seem like a bad thing, opting for a more affordable home may lessen monetary stress in the long run.
Con: It’s smaller. When you spend less, you get less. If you decide to go for a starter house, you’ll likely be contending with less square footage and fewer rooms. This can be a challenge, but it’s also an opportunity to downsize your stuff.
Pro: It may be a source of income. If you don’t plan on staying in your starter home forever, you could eventually rent it out and turn it into a source of income. This is ideal since smaller starter homes are often easier to maintain.
Con: It might not be easy to sell. Although the ability to rent can be a benefit, it’s not for everybody. If you’re dead set on selling, you may have a harder time than you would if you opted for a bigger home. It may also need more repairs that further make it difficult to sell.
Pros and Cons of a Forever Home
Pro: You can put down roots. Everybody wants a place to call home. You want a community with friends, neighbors, and loved ones. It’s much easier to cultivate this when you know for certain that you’ll be staying in your current home long-term.
Con: It’ll cost more. You might be prepared to put down roots, but are you ready for the higher price? When you choose a home that you plan to stay in forever, you’ll likely be paying for a higher mortgage. When you apply for a mortgage, your loan is determined by your income, credit, and employment. If these criteria don’t qualify you for a sufficient loan, your forever house may be out of reach.
Pro: No more moving. Nobody likes moving, and it’s even harder when you have a family in tow. A forever home allows you to stop relocating and simply focus on your family. The additional space means that you’ll be able to grow your family, too, if the time is right.
Con: There will be more upkeep. More upkeep will come along with the additional square footage. This can be a hassle if you don’t have the time and resources to tend to the tasks.
Regardless of whether you choose to pursue your forever home or settle for a starter home, you should research mortgage rates to find the best loan. This can make a big difference in how much house you can afford and how much your monthly payments are.
Photo by Unsplash