As a first-time homebuyer, you have two options: a starter home or a forever home. A starter home lets you get your bearings as a new homeowner, while a forever home is where you plan to grow old. To figure out which one is right for you, you need to look at the pros and cons of each. Here’s a guide courtesy of KCS Improvement to help you explore the things you need to keep in mind.
Purchasing Costs
Buying a house is always a considerable expense, but there’s a significant gap between a starter and a forever home. When you purchase a forever home, you’ll want every item on your checklist, which means a higher cost. Remember, the total expense is more than the asking price. You also have to pay the following:
- Appraisal fees
- Inspection fees
- Escrow fees
- Taxes
- Insurance
Make sure you take these into account when determining your budget. Additionally, look at house prices in several areas to get a sense of the housing market. You may be able to find a more affordable property in a different neighborhood. When you’re ready to dig deeper into the local market, get in touch with a local realtor who can help guide you through the complete home-buying process.
Repair Costs
Starter residences tend to be older, which means they may need repairs. Depending on what’s wrong, you could end up spending a fortune getting your house into shape. Many Americans are struggling just to cover the rising costs of bills today. An unexpected home repir can put some families into dire financial strains. However, there are options available that can provide assistance in helping families pay for these unexpected emergencies.
Upkeep
Keeping a house clean is a big job, especially with more square footage in a forever home. The following are just a few tasks you’ll need to perform as a homeowner:
- Cleaning the gutters
- Washing windows
- Vacuuming carpet
Rental Income Opportunities
If you buy a starter residence first, you can turn it into rental income when you move on. According to studies, 2014 to 2019 saw a 10% increase in home values, which means a starter house can be an asset long after moving out.
Square Footage
Forever homes have more square footage, so your family has room to grow. However, that means more things to take care of and higher utility costs. Of course, starter homes also have downsides, as you may feel cramped in a smaller house.
Difficulty Selling A House
Selling a house can be as stressful as buying one. If you decide to put your starter home on the market, you’ll need to take care of the following:
- Staging your house
- Arranging showings
- Negotiating with potential buyers
Additionally, starter homes may be difficult to sell since they’re typically older and smaller.
Established Dwelling
Stability is essential in children’s lives, especially during the early years. If you want to put down roots for your family, a forever home is the way to go.
Future Moves
No one likes moving, but if you buy a starter home, you’ll need to move eventually. That means taking care of the following:
- Hiring a moving company
- Packing and labeling boxes
- Deep cleaning
- Unpacking and organizing your new home
If you buy a forever home, you never have to worry about this fuss again.
Ownership Experience
A starter home gives you a chance to experience homeownership and decide what you like. If you purchase your forever home straight away, you may be stuck with features that don’t work for you.
Regardless of whether you choose a starter or forever home, invest in quality homeowner’s insurance. You may ask, “but is a warranty worth the price?” The answer is generally yes, especially if the home is older or if you plan to own it for a while. The coverage offered on home inspection red flags and major appliances, including your HVAC unit, will also apply if you turn this property into a rental at a later time.
Attachment
When considering the practicalities of starter versus forever homes, it’s easy to forget the emotional factor. You’ll spend years in a starter dwelling, and that’s plenty of time to get attached, especially if you start a family there. With your forever place, you never have to worry about one day leaving and can just enjoy your experiences.
Deciding between a starter and a forever home is a big decision. However, you can confidently choose once you prioritize the pros and cons. And if either type of home needs renovations, KCS Improvement can help. We offer beautiful remodeling options for your home’s bathroom and kitchen, along with building decks and home expansions. Visit our website for more information and illustrations of our work.
