Whether you're breaking out of the rental market for the first time or just making a convenient relocation with your family, you are faced with a big decision. Should your next house purchase be a starter home, or are you ready to commit to your forever home? The answer depends on a number of personal and external factors. There are heavy pros and cons to weigh on each side, and it should be discussed with any loved ones who are making the move with you. Once you know the key points you must mull over, you will be better prepared to make this next big step in your life.
- Affordability
Cost is the biggest and most immediate concern when it comes to choosing a home. Settling on a more affordable starter home means you will spend less up-front. If you go into the transaction knowing that the property will only be your home for a few years, you can also factor the smaller amount of overall upkeep into your budget. Also, remember that this temporary home can become a source of income when you eventually move out, either as a rental property or a profitable flip.
- Insurance
Your ability to pay for quality insurance coverage is also a factor in your house hunting decision. The cost of homeowners insurance is often much higher in risky areas, such as those where natural disasters are relatively more common. If you are on a tight budget, you might consider opting for a starter home where insurance is more affordable.
When thinking about insurance, remember that homeowners insurance only covers structural damage, theft, and injuries on the property. When you finally move into your forever home, you will likely want to invest in an annual renewable home warranty to protect your appliances as well as heating, electrical, and plumbing systems. Check out the steps to find the best home warranty provider before you choose your coverage.
- Size
Taking the leap to purchase your forever home may be necessary if you require a more spacious house. A starter home might be a tight fit if you have a family to consider. When you move into your dream house, you will have enough bedrooms, yard space, a home office, and everything else on your wishlist. Space is also something to consider if you intend to entertain guests or clients as part of a home-based business.
- Effort
Choosing to move into your forever home sooner rather than later can save you a great deal of time and effort in the long run. One obvious consideration is the idea of never making a strenuous move again. Additionally, many starter homes tend to be fixer-uppers that require anything from a fresh coat of paint to full-on construction overhauls. Statistics show that only 42% of young homebuyers are interested in purchasing a fixer-upper, largely due to the time investment that may not be worthwhile for a temporary home.
Finding the right home for whatever stage of life you find yourself in is a challenge, but one worth facing to the best of your ability. Whether you decide to save money with a starter home or commit to a dream house, your local real estate agent can help you find the right property for the best price. Wherever you live next, you and your family will be one step closer to the life you've envisioned.
Reach out to The Lynch Group at (949) 300-7342.
