Investing in a starter home is a great way to become a first time homeowner. Although starter homes generally don’t have as many amenities as more traditional homes,they give you the chance to learn what’s involved in owning a house. You’ll experience the house shopping as well as the closing and financing process firsthand without taking on too much debt.
Amenities you get with starter homes
With a starter home, you’ll also understand the types of repairs that are needed to maintain a house. Rather than guessing at how much you need to budget for house repairs and general maintenance, you’ll see those numbers firsthand. This gives you the knowledge to know if you truly are ready to take on a bigger house investment several years from now.
Amenities and features that generally are built into starter homes offer convenience. Modern starter homes are designed with open floor plans. You’ll have the option to choose hard wood or carpeted flooring. Vaulted ceilings can help your house appear larger. So too can kitchens that have long counters along one side of the kitchen.
Through homeowners associations, you can have someone else mow your lawn, shovel snow and cut away dead trees. You won’t have to clean the community pool or worry about calling to have your garbage removed. Fees that you pay your homeowners association will cover these services. Depending on where you buy your starter home, you may have to share a back yard with a neighbor.
Older homes as starter homes
Older homes that work well as starter homes are built with two to three bedrooms, an unattached garage, basement and a dining room. Bathrooms in these starter homes may be small. Additionally, older starter homes can yield costs savings upfront but require a larger maintenance investment.
Think about your personal needs and wants before you buy a starter home. Avoid buying a starter home because a lender tells you that a down payment is not needed. This step will get you a higher monthly mortgage. Approach buying a starter home similar to how you start out in secondary school before heading straight to college.
Look at the investment as a learning opportunity. You can get the skills to negotiate a great deal on an upscale house down the road. You can also learn what to look for in a neighborhood and community without signing a pricey mortgage.
As a new home buyer, it may make sense to begin with a starter home. If you fall in love with the house, you can invest in upgrades and renovations when your budget allows. Choose a starter home that’s centrally located and you could take shorten your commute to work or even take public transportation. Starter homes are also located near major shopping, business and entertainment hubs. It’s a reason why starter homes are a great way to transition from apartment living to home ownership.