Should You Buy a Starter Home in Roanoke Virginia?

Should You Buy a Starter Home in Roanoke Virginia?

You may have heard the term starter home, but as a first-time home buyer, you wonder what does that mean? When you’re buying a home for the first time there are a lot of questions that need answers and this is one of the first ones, do I buy a starter home or go all in on my forever home?

What’s Considered a Starter Home?

A starter home can be a single-family house, a condo, or a townhome. Starter homes are something the average first-time buyer can afford but will likely outgrow over time. A starter home will typically be a smaller home with modest finishes. It is possible to find new construction tailored to the starter home market also. There aren’t going to be all the features you maybe hope to have someday but for now, it suits your lifestyle.

What’s a Forever Home?

A forever home is one that can be not just larger but may have some of the features that are highly desirable and make a property competitive when it hits the market. It may have a big, private yard and be in a great school district, for example. Of course, a forever home is subjective. For some people, that home may be one where they can envision raising a family. For others, a forever home might be a fixer-upper that needs some TLC but is in a great neighborhood. A forever home doesn’t have to be inherently luxurious, but one defining feature is that they tend to be bigger than a starter home.

The Benefits of a Starter Home

If you’re at a point where you are choosing between a starter home or a forever home, both have pros and cons. A starter home will be less expensive typically so you can save for a down payment faster. Then you can begin to build equity sooner as well. If you wait to afford a forever home, that’s more time you’re going to sink into rent and less you’re investing in equity. When you’re ready for your forever home, you can then use the equity in the starter home to reduce its cost. The downside of a starter home is that you’ll likely outgrow it when you enter another phase of life

The Benefits of a Forever Home

If you intend to skip the starter home and go straight to a forever home, there are benefits. There’s peace of mind that comes with knowing you plan to stay in your home for the long term without having to worry about moving. You can take time to create a home that fits your needs gradually.

Which is Right For You?

Let’s face it, we all live on a budget and that should be the number one concern when you are deciding which type of home to buy. Your mortgage professional can guide you in that decision by suggesting different loan programs that make sense for you and providing estimates on your monthly mortgage payment. You want to look for properties, no matter the price, that has an excellent potential resale value. Sometimes you do also have to remember that what you think is forever right now might not really be forever. If you want to get questions answered or find out more about the home-buying process call or text 540-537-9281.