Homebuyers often fall into two categories – those looking for a “starter” home, and those ready for their “forever” home.
Some real estate experts champion the starter home because it gives buyers a chance to break into the real estate market without needing a huge down payment. Others advise serious buyers to save money and hold out for their forever home.
So, which one is right for you??
Here are some pros of each to help you settle the starter home vs. forever home debate for yourself!
Starter Home
Starter homes are usually smaller and less expensive. That makes them a great choice for buyers who:
- Don’t intend to live there for a very long time. You’ll need to stay at least 2 years to avoid capital gains taxes, but experts recommend living there for 3-5 years to build equity and get the best return on your investment.
- Are under 35. In your 20s and 30s, life can change quickly! You might have career and lifestyle changes that redefine what you’re looking for in a home, so it makes sense to start with a smaller investment.
- Have less to spend. A lower price point and lower property taxes can help you get a toehold on the real estate ladder without spending a fortune.
- Don’t have a lot of time. Starter homes are smaller and require less upkeep. That can be great for busy buyers that don’t want to dedicate their weekends to maintenance or DIY projects.
- Want to build equity. You first house is rarely your last house! But when you make a smart investment on your first home, you can build the equity that helps you buy your next one or keep it as an investment property and enjoy that revenue!
Forever Home
Your forever home is the one you’ve been dreaming about for years! You know you’re ready to make the leap into long-term home ownership when you:
- Have more spending power. Once you’ve had a few years to work and save, you’ve probably built a decent nest egg that will allow you to buy your dream home!
- Want to put down roots. You’ve found the community that feels like home, and this is where you want to raise your family for the foreseeable future.
- Want more customizable options. A forever home allows you to build or renovate to YOUR specifications without worrying about how it might affect your resale value.
- Need room to grow. Weddings, babies, even pets might necessitate more space, and you can find it in a forever home!
- Are here to stay. You’re done with packing boxes, hiring movers, and uprooting your life. You want a place that meets your needs now and decades from now.
Whether you’re just getting started, or ready to put down deep roots, I’d love to help you find the perfect place! Email me at https://colleengodfreyrealestate.com/contact/ and tell me what your ideal home looks like!
