When you are a first-time homebuyer, the whole process can seem overwhelming. One of the biggest decisions you will be faced with is whether or not you are looking for a starter home or a forever home. This decision can leave you feeling stuck. Depending on your budget and desires, you may be able to afford others and are unsure of what the right step is. Let’s take a look at what you should know about starter and forever homes so you can begin to narrow it down and find the right for you and your family.
Starter Home or Forever Home?
What is a starter home?
A starter home is considered a condo, townhome, or single family home in a price range that a first-time homebuyer can afford. Starter homes are usually smaller modest homes that are basic but meet the needs of the homeowner. In some cases, these are older homes, fixxer-upers, or a smaller brand new build. Starter homes are not going to have luxurious amenities. They allow you to get started in the real estate market and hopefully build equity t=in order, to sell and move into a forever home.
What is a forever home?
A forever home will be a home you can see yourself in for many years. These homes will vary in size, style, and amenities because it is based on personal preference. Everyone has a different vision of what they believe is an ideal forever home. Forever homes can be luxurious or modest depending on who is purchasing. Overall, they provide the homeowner with room to grow for their family.
Pros & Cons
When you are deciding on what is best for your family you want to consider the pros and cons of each.
Starter Homes
Pros
Starter homes are usually on the lower end of the current market price range, This means that you may have an easier time saving for a downpayment. You can also build up a lot of equity sooner as you make home improvements.
Cons
Starter homes can easily be outgrown if you have a growing family. It can make it difficult to host things. Starter homes may also come with a lot of repairs if they have not been cared for properly or they have been deemed fixer-upper. You need to know what you are getting into.
Forever Homes
Pros
When you move into you forever home you will feel settled. You will enjoy the extra space and knowing you can truly make it your own. Your forever home gives you security in that you are likely not moving again.
Cons
Forever homes are usually more expensive and it can take a lot longer to save for the down payment. This can postpone your purchase and be challenging mentally and emotionally.
Tips & Tricks
When you are looking for a forever home, you need to consider long-term planning. buying a starter home can be a big part of that plan. The longer you stay in your starter home, the bigger the chance of value growth in that home. This is what allows you t upgrade to your forever home. You always want to think about the long-term value anytime you purchase a home. Working with a trusted and knowledgeable agent will be very beneficial for you. Always consider what value you can add to the home. Resake potential should always be at the forefront of your mind as you make home decisions.
In Conclusion
For more information on buying, selling, or investing in Miami real estate, contact us. We would be happy to assist you whether you are looking for your starter home, forever home, or vacation rental.