Start Off Small, or Go Big? Here’s How to Decide Between a Starter Home and Your ‘This Is It’ Home

If you’re moving home, then you’ll probably agree that making that final decision on just one property can be more difficult than it seems. After all, you probably have so much to consider already when it comes to finding your dream home, and chances are you probably won’t find everything you had hoped for when you finally do decide on a property. So, to avoid regret and any disappointments in the long term, here’s how to decide on whether you need a starter home in the meantime or a more permanent home for good.

Pros of starter homes

Starter homes certainly do come with some advantages. For one, if you’re strapped for cash, you’re likely to find a convenient starter home that will come in way under your max budget. Other advantages include being able to move again if you finally do find your dream home, it’ll probably be smaller than you envisioned which means less to maintain, and you’ll probably have to pay lower property taxes. And of course, you could always rent it out at some point if you really do want to save up for when your ideal property comes along.

Cons of starter homes

Indeed, there are positives and negatives to every decision. And when it comes to investing in a starter home, this is no different. For example, because starter homes tend to be on the smaller side, they may not be adequate space-wise to accommodate your large family. Furthermore, beginner homes aren’t always in the best shape and may require more work to upgrade certain features. Also, say you decided on a beginner home out of necessity you might not be able to resell it easily one day, especially if you bought it in an undesirable location, for example.

Pros of permanent homes

Suppose, though, you’ve found your forever home, and you just know that it’s the one for you. Obviously, then, it’ll be easier to settle into knowing that you won’t have to move again for a long time to come (if ever). Moreover, it’ll probably be more suited to your family’s requirements in terms of size and spaciousness.

Cons of permanent homes

Your dream home will probably come with a hefty price tag, which can end up being more than you’re able to afford. Furthermore, you’ll probably also have to set aside funds for home improvements and upgrades, especially if you have lots of room to fill. And yes, your property is likely to appreciate in time, but it will probably take a long time to do so.

Deciding what you can afford

In all likelihood, choosing a property for the long haul or short term is most probably going to come down to what you can actually afford at the end of the day. More so, because you’ll have all sorts of external costs to consider, such as moving costs, for example. So be careful to choose wisely to avoid spending more than you need to. If you’re unsure that you’ll select the most suitable moving company for your needs, then do a quick search for moving services near me to find the best and most affordable one for you. Also, your level of affordability will also come down to how impressive your credit history is and if you have a low debt-to-income ratio in which case you may be able to qualify for an FHA loan. This means you only need to put down a down payment in the region of 3.5 percent in terms of the purchasing price of your property.

In summary, choosing between the home of your dreams and your home ‘just for now’ is going to take some thoughtful consideration. But no matter how long it takes you, it’s important to be sure of your final decision. And you most probably will be if you’ve based your decision on the factors that matter most to you.

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