Is It Still A Smart Move To Buy A Starter Home?

 

Has buying a starter home fallen by the wayside? What was once an initiation into adulthood, is now more up to personal choice. With changes in the economy, the real estate market and lifestyles overall, many are choosing to rent or stay at home longer and save. Is the starter home dead? That’s up to you. Here are some pros and cons for you to consider:

 

Pros For Buying A Starter Home

 

1. You Get Some Skin In The Game

Nowadays, it’s becoming harder and harder to be a homeowner…let alone a first-time homebuyer. Purchasing a starter home might just be the perfect way for you to start your homeownership journey. Not to mention, you will build equity which is a great way to help you get to your next phase of homeownership faster and with more money to spend. You can also exponentially increase your home’s equity through some strategic updates and accelerated mortgage payments. Most importantly, homeownership is a wonderful thing.

 

2. Rite Of Passage

There are so many joys that come from being a homeowner. It helps you to sprout your own roots and is just simply a safe place to call your own. Many people say that it offers them a feeling of stability and thoroughly enjoy putting in a little sweat equity to make it their own.

 

3. Reap The Benefits

Depending on your province of residence, there can be numerous tax credits that you are eligible for as a homeowner. You can qualify by being a first-time homebuyer or doing a major renovation. We also recommend checking with your utility companies as you may qualify for credits by completing a home energy audit or installing smart home items like a thermostat.

 

Cons For Buying A Starter Home

 

1. Multiple Moves

If you’re a first time home buyer and decide to go with a starter home before moving into something larger to fit your needs or growing family, you will also have to factor in multiple moves. At least two, but maybe more depending on your long-term plans. Either way, these moves not only are time-consuming but also carry a price tag. These costs can include hiring movers, land transfer tax, home inspection, and more.

 

2. Hidden & Added Costs

While additional moves can become costly to you as homeowners, there are also hidden and added costs that you as homeowners must think about. We touched briefly on some of the costs above, but here are some that may not think of. A house isn’t really a home until you put your personal touch on the space, and that comes with a price tag. Even small projects like painting, adding new fixtures and replacing carpet can add up quickly. Plus, if you are moving into a bigger space, odds are you likely will need to invest in more furniture to fill it up. With that being said, you don’t have to spend all the money at once and can plan to do things over a more manageable period of time.

 

Are you ready to become a homeowner, or upgrade your starter home? Give us a call today.