Let’s state the obvious: most young people aren’t looking to buy a house. Between a monthly mortgage, maintenance costs, and other unexpected costs, the price of owning a home doesn’t seem feasible to most young professionals. Though certainly a monumental purchase, it’s important to remember that most first-time homebuyers don’t stay in that house forever. Quite the contrary – most first-time buyers look at starter homes exclusively.
Starter homes are typically homes people plan to outgrow at some point; think townhouses, condominiums, or smaller single-family houses. While starter homes are usually smaller and more modest than forever homes, buying a starter home can still benefit first-time homebuyers.
Look at some of the best reasons to buy a starter home:
- Affordability. As we’ve said before, starter homes are much less expensive and, therefore, much more affordable than a forever home. That means lower down payments, lower monthly mortgage payments, and lower utility costs, making it much more manageable to handle financially than a larger home. These lower payments also give you room to save for a forever home when you’re ready for a larger house in the future!
- Ease Into Homeownership. A starter home is a fantastic opportunity to ease into homeownership, especially for first-time buyers. If you’ve always been a renter, you may not know all the costs, fees, and responsibilities of owning a home, since many of these tasks are covered by the property owner or rental company. Because of the nature of a starter home, the costs of maintenance and repairs are smaller and much less time-consuming, making it a much easier transition into homeownership.
- Experimentation. If you’re looking to buy a forever home, a starter home might be an excellent way to “experiment” with some of the things you’re considering in a forever home. For example, do you want a home in the city or the suburbs? Are you considering a particular neighborhood or area but unsure about the commute to work? Purchasing a starter home to experience these lifestyles is a terrific way to solidify your wants and needs when looking at forever homes.
- Investment. Last but certainly not least, buying a starter home is a fantastic investment. As you make your monthly mortgage payments (and improvements to your home), you are investing a considerable amount of equity instead of spending more on rent. Once you’re ready to buy a forever home, you can use the equity you’ve gained from your starter home and put it towards a larger down payment.
Choose a real estate agent that will genuinely take the time to understand your wants and needs. Contact Sandy Majetich-Toth at 815-791-2215. Sandy can help you in your search for a new home or help you sell your current property. Let’s get started today!
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