Starter Home vs. Forever Home: What You Should Consider
Much to Consider
Purchasing your first home can be exciting, but it can also be a little stressful. After all, you have much to consider and many choices to make. First, you should decide whether you are ready to dive in and purchase your forever home or if you prefer to dip your toe in the water with a starter home. Consider the following questions to help you get the ball rolling, courtesy of OutFactors.
What Is the Difference?
In general, a starter home is significantly smaller than a forever home. It might be a condominium or minimalist house that you plan to outgrow at some point. A forever home is larger because you plan to create your family there and customize it to fit your needs. Which you decide to purchase first depends on several factors, predominantly price.
What Can You Afford?
A pro of purchasing a starter home is that it will be significantly more affordable than a forever home, and they require less upkeep. You’ll save on the down payment and begin building home equity sooner. Of course, there are downsides as well. A starter home often requires more repairs, and you may outgrow it sooner than you hope.
A forever home allows you to create a living space specifically designed for you and your family. However, it will cost more, and a larger home will require more upkeep. You may need to take more time to save for the larger down payment, but that comes with risks as well. For example, as time passes, homes may become increasingly more expensive.
Are You Looking for Resale Potential?
Your home’s long-term value is an important point to consider before you buy. A starter home is often harder to sell, but selling doesn’t have to be an option. It can be an investment. You can make all the necessary repairs while you live there and use it as a rental property to generate more income when you decide to move. There is no way to guarantee that your forever home will be permanent. Location is important to resale value. Research shows that location drives demand and significantly impacts pricing. Finding a great deal is a good feeling, but finding a fixer-upper in an unattractive location will likely hinder the resale potential.
Is There Something in Between?
Starter home and forever home are two ends to a longer spectrum. If you aren’t interested in a starter home but feel pressure when thinking about the permanence of forever, consider the long-term home instead. Keep your mind open to a home with fewer repairs and more space than a starter home but less upkeep and a lower price tag than a forever home.
Have You Thought About Insurance?
Whenever you buy a home, whether it’s a starter or a forever home, you have to consider homeowners insurance. The costs vary greatly depending on the insurer you choose and the coverage you want. Sometimes homeowners insurance is not enough. It covers some structural damages, theft, and personal injuries, but if you want to cover items inside the home, such as appliances and home systems, you should consider a home warranty. It renews annually and will cover costly repairs, such as HVAC and plumbing issues. Check out these handy tips to find the best home warranty company to make a more informed decision.
When it comes to choosing a starter home or a forever home, neither is universally better than the other. It is a personal decision based on your future plans and your financial status. Take the time to truly consider what works best for you and your family.
Brought to You by OutFactors
This information is provided by OutFactors, a home cash buyer. At OutFactors, we buy houses as-is for cash and close quickly. To get a great cash offer on your home, you just need to enter your address and answer a few simple questions about your house. The entire process only takes about 2 minutes, and personal information is NOT required. Yes, that is correct! No registration, no telephone number, no email address – not even your name.
If you get started now, 10 days later, you can be sitting at a table signing the closing documents and collecting the cash for your house. So get your cash offer now!
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Dallas, Texas 75208
Starter Home vs. Forever Home: What You Should Consider | OutFactors – Dallas Fort Worth, Texas