If you can't afford a grand and expansive home that fits all your needs for many years to come, is it worth your effort to buy a so-called starter home now? Starter homes, certainly, are inherently less exciting than a dream home, but they provide value to new homeowners on a number of levels. Here are five key benefits.
1. You Start Your Investment.
Real estate is one of the few purchases most Americans will ever make that appreciates in value. This makes it a wise investment tool and can help fund your future home purchases. Even a small home is an opportunity to build equity and be in a better financial position when you do find that dream home.
2. You Learn Home Care.
If you have only lived at home or rented someone else's property, your experience with caring for a home is limited. As a homeowner, you will need to deal with property taxes, yard maintenance, home repairs, insurance, and security. Small, less expensive homes give young owners a chance to learn skills and gain experience without an overwhelming commitment.
3. You Can Make It Yours.
Just because you buy a home that's not perfect for your needs doesn't mean it has to stay that way forever. Starter homes are inherently less expensive than most "forever homes," so you should have more wiggle room in your budget. Use this extra funding to make the house your own and also more attractive to future buyers.
4. You May Choose to Rent It.
Many starter homes are perfect for future use as a rental unit. They're affordable for renters and require less maintenance and expense for landlords. So if you may be interested in building a mostly-passive side income for the future, that starter home can remain yours and grow in value for as long as you want.
5. You Learn What You Want.
First-time homebuyers go into this major purchase with only a limited understanding of what they really want in a house. You may, for instance, think that you want a modern open floor plan until you've lived in one for a while. Then, the noise pollution and constant interruptions may make a closed floor plan much more attractive.
Where to Start
Do these benefits make a starter home a logical option for you? If so, start by learning more about the options and prices available for starter homes in your target neighborhoods. A local real estate agent can be your best ally in finding the perfect way to begin your life as a homeowner. Make an appointment with a real estate agent in your area today.