Many first-time home buyers often struggle with choosing between a starter home and a forever home. If you’re facing the same dilemma, it’s important to understand their differences, as well as their pros and cons. You also need to examine your situation and goals to determine the right choice.
Debklein.com and other mortgage lenders in Chandler, AZ share the differences between a starter and a forever home:
This is usually a smaller home that’s easy to manage and has a nice resale potential. Many choose a starter home, as this is the only type of property they can afford right now. It\s ideal if you don’t have a big savings account yet, as it requires a smaller and more manageable mortgage. This means that you won’t have to make big lifestyle adjustments just to afford and keep the house.
As starter homes are usually smaller properties, their main advantage is affordability. It is also easy to finance a home when you’re borrowing a smaller amount. Another perk of buying a starter home is that offer plenty of opportunities to increase its value. You can remodel the bathroom or the kitchen, or improve the curb appeal for a much bigger return.
This is the type of home you plan to keep “forever” or stay in for a long time. A common reason for buying a forever home is to accommodate a larger family. Couples who have the intention of having more kids or expanding the family can benefit from this property. In most cases, forever homes are bigger than starter homes, but they can still be manageable depending on the size you prefer.
When buying a house for a long-term, it’s likely that you’ll have to make more compromises. As you’ll be living in it for years, you have to make sure that the home is something that you’ll grow and be comfortable with. But the good news is, it can offer a potential income opportunity if you don’t need all of the space yet. You can rent out some areas and gain an extra monthly income.
No matter what you decide, it is to best to make sure that you’ll buy something that comfortably fits your current financial situation. Also, you have to consider if there is a chance of relocating for a job or expanding your family. You can get help from a reliable lender in making a decision based on your income and finances.