If you have been renting for a long time or purchasing a home for the first time, you may be wondering whether a starter home is the right investment for you. There is a certain sense of accomplishment that comes with becoming a homeowner. Owning a home, even if it is modest and small, can be a terrific way to establish stability.
What is a starter home?
A starter home is a short-term house, typically a one- or two-bedroom property that serves the homeowner’s basic needs. This can be a condominium unit, townhouse, or single-family home. It is a practical option for first-time homeowners who are not ready to commit to long-term residence yet. When you purchase one, it is with the anticipation that you will eventually outgrow it when you start a family, when you feel you have reached ROI, or when you want additional amenities or a bigger space.
What are the advantages of investing in a starter home?
Starter homes are usually the most affordable option for home ownership. The down payment is typically smaller, allowing you to save more quickly and put larger payments on the principal. A smaller home can also mean a lower fee on utility bills, taxes and insurance. The smaller space makes it easier to maintain and you do not need to furnish much.
Investing in a starter home allows you benefits that you do not have as renters, such as making your own repairs and modifications to the interiors. Additionally, you will be putting monthly payments toward your own investment instead of paying a landlord. It can be a source of income down the road if you decide to turn it into a rental property or if you sell it for a bigger home.
Purchasing a starter home can be an amazing investment in your future. It is ideal that you review the legal process of purchasing a home so you can make an informed decision.