When house searching, it tends to be a big decision on whether or not you are looking for a short-term starter home, or your forever home. There are pros and cons to both, especially depending on your current income and life circumstances.
In 2019, 33% of homebuyers in the United States were first-time homebuyers. If you are currently debating on which type of home you are looking for, here are some quick pros and cons of investing in a starter vs. forever homes.
Starter Home
Pro: Lower price point- Compared to forever homes, starter homes tend to sit at a much cheaper price point.
Pro: Minimize the commitment- With starter homes, there is less commitment, especially if you are just renting or planning to live there short-term.
Con: Smaller Space- Starter homes tend to have smaller square footage. Although they are great for first-time homebuyers, they may get a bit tight if you are planning on adding some family members into the household.
Forever Home
Pro: Less moving- Once you have found your forever home, there is less need for moving around more. This is a great time to solidify your roots in your area!
Pro: Customize your home- With a forever home, you can renovate and improve your home in any way you like. You can invest money into your home that you will pay you off once you decide it is time to let it go in the future.
Con: Higher Cost- Compared to starter homes, forever homes tend to be much higher in price point, especially if you plan to invest in new additions in your home.
As you decide on what type of home you are looking for, keep in mind your goals and finances. When buying a new home, it is important to check on current mortgage rates to see what loans you can receive at your price point.
