Author: Katie Conroy
Finding your first home can be overwhelming, and with limited financial resources, it’s not always easy. While many young people look at starter homes as small and cheap apartments to live in for a few years before moving on to something bigger, there are other benefits of buying a starter home. In this blog post presented by Caribhomes, we’ll take you through the considerations you need to make before purchasing that perfect starter home.
What is a Starter Home?
Before we get into the benefits of buying a starter home, let’s take a look at what one is. A starter home is typically a low-priced, lower-priced property that an individual or family can buy to move in to and stay for a period of time before moving on to something bigger.
How Much Should You Spend on a Starter Home?
The cost of a starter home varies depending on the location and overall size. There are many factors that can contribute to the cost, such as whether you’re building or buying an existing home, and if you’re looking for a condo or single-family house. This article will not go into all of those considerations in detail, but it is worth noting that the median price of a starter home in the United States is $374,900.
Location, Location, Location!
Where you buy your home should be the first consideration. Some markets are more desirable than others, and location can make a huge difference in home values. For example, if you want to buy a starter home in San Diego, it may be difficult as the market is overpriced and competitive. You might find better luck in a smaller city or town where starter homes are more affordable.
Types of Starter Homes to Consider
First, you need to identify the type of starter home you are looking for. Some starter homes come with a lease-to-own agreement, which allows you to pay for your home over a period of time without having to worry about increasing mortgage rates. Other types of starter homes include condos and apartments that range in size from 400 to 700 square feet.
4 Things to Remember When Purchasing Your First Home
- Location – Location is the most important factor when looking for a starter home. If you’re looking to buy a home in an area that’s not close to where you work, your commute will be longer, which means more time spent at work and less time with friends and family.The location should also have amenities that are convenient for you like grocery stores, pharmacies, daycare centers, and schools. Finally, the location should fit your housing budget to maximize your living space.
- Size – Unless you’re moving into an apartment with roommates or already have one of these in place, size matters. You want to make sure the home will accommodate your needs and that it can grow with you as well as any children that may come along later on down the road. For example, if two people live in a one-bedroom home and decide to start a family, it might not be enough space for them or their children and they might want to upgrade to a two-bedroom home in order for everyone to have their own space.
- Furnishings – Another factor is furnishing the perfect starter home because it can help create a welcoming environment right off the bat. When viewing homes without furniture inside of them, remember that there are several places where furniture can be purchased at affordable prices so you don’t need expensive items right off the bat!
- Warranty – Last but not least, don’t forget the home warranty. When you buy your first home, chances are your budget is pretty tight. A home warranty can help you cover the cost of repairs — from plumbing and electrical to appliances — so you’re not hit with the entire amount. So, make sure you do plenty of homework to find the best homeowners warranty for appliances and more, as not every warranty is created equal.
Purchasing a starter home is a big decision and not one to be taken lightly. There are three things to consider before making that purchase: affordability, location, and space. Although it may seem like the perfect time to buy a starter home is when you’re in your 20s, 30s, or 40s, that’s not always the case. It’s important to really think about your financial situation and what type of living space you need before making that purchase.