First time home buyers may be tempted to buy a starter home based on their gut feeling. Every potential buyer dreams of a house with open floor plans and granite countertops while, in reality, their budget can’t afford such a home. Besides that, what a buyer wants today may differ from what he‘ll need some few years down the line.
Therefore, you need to approach home buying with soberness rather than with emotions and excitement. Apart from the interior designs of a house, there are other things that you need to consider when buying your home from Movoto. Starter homes are transitional homes and not forever homes.
Here are the things you need to consider before buying a starter home.
Home reality tv shows may make renovations seem an effortless task. However, you shouldn‘t purchase a starter home that has plenty of renovations and upgrades to make because you‘ll live in it for a short time. Routine maintenance is costly. Instead, you should purchase a home that has been adequately maintained and requires little upkeep and repairs.
You also want to buy a starter home that has less space outside. If you buy one with a lot of space, you may incur unplanned expenses such as hiring someone to mow your lawn, winterize your pool and pick up your trash. On the other hand, if you buy one with a small space outside, you‘ll incur low costs and have the freedom to leave with minimal planning and preparation. Purchasing a home whose yard is being maintained by the homeowners‘ association may be wise if you have wide yard space.
Most homebuyers make the mistake of considering the features of a house more than the distance from their friends, work, stores, and family. They end up findingthemselves in a home where they can‘t visit their favorite coffee shop, attend late parties, or visit their famousparks.
When buying a starter house, you need to factor in your emotional attachments. Your choice of house should fit your lifestyle and allow you to access your family, friends and work place easily. If you buy a home that‘s far from what you care about, you may end up spending a lot of money and time commuting. Apart from that, you may be stressed because of missing your friends and family. You need to list your lifestyle priorities and let themguide you to make informed purchasing decisions.
According to Brad Pauly, a professional real estate developer in Austin, Texas, you should move to a starter home that‘s similar to the one you‘ve moved from. He also advocates for moving to a community that has similar characteristics to your previous one. That will make it easier for you to adapt to your new neighborhood.
The most significant determining factor of the home you‘ll end up buying is the price. Some starter home buyers make mistakes by borrowing the maximum amount of mortgage they have been pre-approved for.According to a habitat.org study, more than 38 million Americans pay more than 30% of their incomes on housing. Just because the bank tells you that you borrow enough money to get yourself a top–quality 2500 square foot home on an acre lot doesn‘t mean you should buy it. You‘ll need to survive in that home after completing the buying process.
If you spend all your money on mortgage or maintenance costs each month, your starter home may soon become a source of stress and depression. Write a budget and purchase what you can afford. Most experts recommend buying a house that will take five to sevenyears to recoup your money and give you some return on your investment. Using a mortgage calculator can help you know monthly payments based on taxes, insurance, and other factors. Therefore, it’s wise to buy an affordable house that will leave you with cash for entertainment and upkeep.
It would help if you considered how your five to ten years from now would be before purchasing a starter home. Not giving much thought to your future may make you commit an expensive mistake. If, for instance, you‘re planning to have children with your spouse in the future, you need to buy a spacious starter house. If you buy a smaller home, you may end up not meeting your future family’s needs.
If you‘re single, purchasing a house in the center of a city with plenty of nightlife may be a good idea. However, after some years, you‘ll need to settle down with a family and live in a quieter neighborhood. Though it‘s tough to know what your future will look like from the present, you need to incorporate long–range plans into your buying decisions to ensure your selection is the perfect choice for today and tomorrow.
Because starter homes aren‘t meant to be occupied forever, you need to buy a house that you can quickly sell when deciding to move out. That means you need to choose a home in good condition which can give you room for improvement. Its maintenance costs should not drain you to the extent of getting losses when you eventually decide to sell it. Instead, the maintenance you perform on it should upgrade it to make you get more money.
The location of the home also matters a lot. You need to pick a smart location close to stores, restaurants, parks,and other social amenities. It should also have a good neighborhood with schools that children can attend. If you select a house in an area with all those factors, you can be sure that you‘ll get buyers quickly when you decide to move out. The last thing that you want to happen to you is to be stuck with your old house when you‘ve gotten a new place to move to.
The Bottom-line
Owning a home can feel great, though finding the right starter house can be challenging. To avoid spending a lot of money on your homeownership journey, you want to steer clear of mistakes. You need to choose a house that‘s affordable, has low maintenance costs, suits your lifestyle and future self, and allows you to sell it when you‘re moving out.
