If you’re in the market for a home, you need to decide whether to buy a starter home or spring for your forever home. What you choose will depend largely on your current situation and long-term goals. 

 

The Starter Home

Starter homes have two distinguishing features: affordability and size. A starter home costs lower than the average home due to its smaller square footage (1,400 square feet or less) and less than ideal particulars such as:

Homeowners generally keep a starter property for 3-5 years or until they’re able to afford a forever home. Experts recommend staying in your first home for a minimum of five years to maximize your return on investment.

 

The Forever Home

A forever home is one that’s seemingly made just for you. It may boast a larger yard, spacious bedrooms, a well-equipped kitchen, and other desirable features. Forever homes are pricier and although residents may not occupy them literally forever, they tend to move in for the long haul.

 

Pros and Cons

Each type of home has benefits and drawbacks that can influence your decision.

 

Starter Homes

A starter home is a good option if you’re at the beginning stages of your career with flexible plans for the future. You may not find everything you want in the first digs you buy, but there are plenty of perks to owning a starter including:

  • Greater affordability: Since starter homes are cheaper than forever homes, it takes less time to save up for a down payment. Other home expenses — property taxes, insurance, maintenance, heating, and cooling — are all lower.
  • Less upkeep: With fewer and smaller rooms, there’s less to clean and maintain.
  • Potential passive income: When you’re ready to move, you can sell and apply the accumulated equity towards the purchase of a new home or rent and earn additional income.

Be mindful of disadvantages such as:

  • Lack of space: You may quickly outgrow your home.
  • Repairs: Some starters are fixer-uppers, so get an inspection for a thorough report on the home’s condition.
  • Difficulty selling: Starter homes contain deal breakers for some prospective homebuyers, drawing out the selling process.

Forever Homes

A forever home may be preferable if you’re financially stable and ready to plant roots. The advantages are:

  • Increased space: More square footage can accommodate a growing family and even a hobby room.
  • Customization: You can make any modifications you want to enjoy for years to come.
  • No more moving: You won’t need to endure the expense and exhaustion of moving for a long time, if ever.

On the flip side, some negative aspects are:

  • Higher costs: A bigger house is more expensive to buy and maintain.
  • More upkeep: There’s more space to collect clutter and dust, making cleaning longer.
  • Slower equity: Move-in ready homes gain value more slowly.

Rachel Bodner, your real estate agent, can help you weigh your options.

 

Moving Day

No matter which home you choose, ease the moving process with these four tips:

  1. Research local moving companies by reading online reviews in Angi.
  2. Schedule in-person inspections with several movers.
  3. Communicate your needs and specific requests. 
  4. Only accept written estimates provided post-inspection. Avoid companies that offer over-the-phone estimates.

Choose What’s Best for Your Situation

 

If your future has a lot of unknowns, a starter home may be your best bet. If you want to settle down and start a family, you’re probably ready for your forever home. Before purchasing any house, be sure it fits your budget and lifestyle.

 

Guest author Katie Conroy is the creator of AdviceMine.com. She particularly enjoys writing about lifestyle topics and created the website to share advice she has learned through experience, education, and research. 

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