Published June 6, 2022
Starter Home or Forever Home? How to Decide What's Right for You
Buying your first home can be
exciting, but it can also be stressful. There are many things to consider
before deciding. Below is a guide to choosing between a starter home and a
forever home.
Buying a Starter Home
Affordability is one of the
biggest reasons many Erie, PA homeowners purchase a starter home. The median starter
home price was $180,931 in 2018,
making it easier to achieve your dream of homeownership than with most
higher-priced homes. If you’re on a budget and want to own property, a starter
home is an affordable option that can help you get on track toward earning
future income by renting it out after you
move to your next home.
Purchasing a starter home
means owning property sooner. They're small, so there may be fewer maintenance
requirements. Forever homes are often larger, and more upkeep is involved.
Moving into a starter home might be easier if you don’t have kids yet;
since most are smaller, they may be more suitable for younger families who
don’t need as much space.
A starter home may be smaller
than what you’re looking for. It may not have enough space
to fit all your furniture, and it might need repairs. If you decide to sell it
later, a smaller house could be harder to sell, and if it's an older property,
it might have less appeal.
Buying a Forever Home
Putting down roots in your
forever home means you won't have to move again, and it comes with a bigger
size suitable for your growing family. Expensive houses have higher costs of ownership in every aspect. With more rooms and higher
property taxes, a forever home requires more time and money to maintain. Also,
the luxury of space can bring upkeep nightmares, such as cleaning and
landscaping. If you're a bit messy, you'll want to steer clear of big houses
because keeping things tidy may seem overwhelming.
Deciding Between a Starter Home and a Forever Home
Before choosing between a
starter home and a forever home, ask yourself what’s more important: buying at
an affordable price or waiting for that perfect, forever home. The answer
depends on your financial situation, debt level, and
long-term goals. It also determines whether you take out a conventional
mortgage loan, consider alternative options — such as using cash to buy your
first home — or use one of several mortgages designed specifically for
buyers purchasing
first homes in Erie, PA.
Insurance Options
Once you decide on a home to
purchase, choose the type of home insurance that works best for your needs. A
home warranty can be advantageous if you want coverage if your home systems or
appliances fail. Is it worth it to have home warranty? It
depends! Examine the home inspection report for any red flags. Find out if
there are any current appliance warranties and what they cover before deciding
whether to acquire a home warranty.
Considering Goals
When deciding what type of
home is right for you, it’s crucial to consider your long-term and short-term
goals. If your goal is to build equity as quickly as possible while maintaining
a low cost of living, buying a starter home may be best for you.
Visit Fred Amendola to get started finding your home in Erie, PA.
Katie
Conroy
