Buying a forever home is a common piece of the American dream. You may be dreaming of a place where you can put down roots and customize your surroundings to perfectly suit your family for now and inthe future.
The problem is, you might not be able to get your forever home today. It might be out of your price range, or your ideal home might not be on the market right now—or maybe you have the means and selection to go ahead and get your forever home, but you are wondering if that’s the right move. You’re asking yourself, “Should I buy a starter or forever home first? Here’s what you need to know.
Pros of buying a starter home first
Here are some of the advantages of purchasing a starter home:
●Smaller price tag: For many first-time home buyers, buying a forever home is out of reach. The starter home offers a lower price point that may let you become a homeowner sooner. If you’re looking to get into a home now but have a small budget, this could be a good option.
●Lower taxes: Let’s not forget the size of the tax bill that often comes with a forever home. A smaller, starter home usually has lower property taxes, so the overall cost of living there will be lower.
●Practice for perfection: A starter home can give you the opportunity to discover what it’s like to be a homeowner. By starting small, you can develop the skills you need to manage a property and maintain a home, so you can better manage your forever home down the line.
●Less upkeep: You might be at a stage of life where you need more time to focus on career, small children or other responsibilities. A starter home usually requires less upkeep than buying a forever home, so you can focus on other things (as well as save money).
●Future investment: A starter home can become a great rental property after you buy your forever home—or it may increase in value, allowing you to sell the starter home and put a significant down payment on your forever home.
Cons of buying a starter home first
Here’s why you might prefer to keep looking until you find the ideal long-term home for your family:
●Cramped quarters: A starter home is usually smaller than a forever home. If you have children or extended family living with you, the space might feel a bit small for your needs.