Many first-time homebuyers face the choice between a starter home and a forever home. Every situation is unique but there are some key advantages to starter homes that exist across the board. Here we’ll go over the major reasons you might want to consider getting a starter home.
Starter homes are smaller and often in less desirable neighborhoods than your average “forever home.” For this reason you can reasonably expect the purchase prices to be much lower. Depending on the area, they might be older homes in need of some fixing-up which will also keep the price tag smaller. Property taxes are lower too, which along with the smaller square footage makes starter homes incredibly affordable even for a tight budget.
A starter home gets its name from the notion that you’ll only plan to live in it for a few years. It’s the first home you buy when you are just moving to a new area or beginning to raise a family. It’s not a home you plan to live in for the rest of your life, whether it be because of size, location or other factors. This inherent knowledge can also help you decide on a home that might not have everything your dream home has, but comes close. A starter home is an excellent option for those who are still working up to the lifestyle they want to have for the rest of their lives.
Larger homes, even brand new ones, cost more to maintain. New homeowners definitely benefit from starter homes as you aren’t signing up for as much regular maintenance when buying smaller. Upkeep in large homes or properties can be overwhelming, both financially and psychologically. Starter homes can help you avoid that potential stress and help you breathe easier while tackling projects and upkeep on a more manageable scale.
Similarly to the above, utility bills will always be lower in a starter home. A smaller house has less space to heat and power with electricity. A home with only one bathroom won’t incur as much of a water bill as one with three. By purchasing a starter home, you’re setting yourself up with a built-in limitation on the price of your utility bills. Plus, smaller spaces can be more energy efficient, which makes it easier to take advantage of things like solar energy and other environmentally conscious lifestyle choices.
If there is a particular neighborhood or city you want to live in for whatever reason, a starter home can be an easy ticket into the zip code. Areas with great school systems, shopping, local commerce and other perks are more expensive because of higher demand. A forever home in one of these areas might be unaffordable right now, but if you find a starter home, you can still live where you want—or at least close by. You’ll get to know the area by living there and if you change your mind and decide you’d rather move elsewhere, you have a far easier time packing up and finding somewhere new.
These are just a few of the main reasons new homebuyers should go for a starter home. The many financial and practical benefits make them a great option for potential buyers of all ages and stages who want to have a bit more freedom in their property ownership.