Should You Buy a Starter Home or a Forever Home? – The opinions expressed by the author in this and all guest blogs are not necessarily those of Gainesville Restoration and Remodeling.
Should You Buy a Starter Home or a Forever Home?
Choosing between a starter and a forever home can be difficult. Moreover, there are many things to take into account beforehand, depending on your situation and preferences, that might compel you to make a decision one way or the other. Gainesville Restoration & Remodeling outlines some of the things you should consider before settling on a starter or forever home for good.
Pros of a starter home
Starter homes are generally the best option if you’re on the fence regarding what it is you envision for your ideal property. Furthermore, starter homes give you time to really look around for that perfect property that you can see yourself living in “forever.” The pros of investing in a start-up property include that it is usually smaller and therefore requires far less maintenance overall.
Then there is the fact that it will probably come in on the lower end of your budget, which means you get extra money to spend on making your house a home. Additionally, your property taxes won’t be as high. Plus, as Purlfrost notes, you get the chance to try your hand out at DIY experiments if you want to give your new starter home a bit of character.
It’s also a good idea to contact a local, reputable company that specializes in restorations and upgrades like those to the roof or plumbing. Reach out to Gainesville Restoration & Remodeling whether it’s for remodels to the kitchen, bathrooms or even to add on a room. They can also address any issues that may arise, such as plumbing or roof leaks or storm damage.
Cons of a starter home
Some of the cons of purchasing a starter home include the space issue. Starter homes are usually on the smaller side, which means you might not have adequate space. You might also have to go the extra mile to make your home all you want it to be, as starter homes usually require a few upgrades or renovations to make them much more attractive.
Why you would want to invest in a property permanently
Suppose you have found the property you have dreamed about for the longest time. If so, it’s a good idea to go ahead with the purchase, especially if you feel like it’s a once-in-a-lifetime deal. Other benefits of moving into a property for the long term include not having to move again anytime soon, and it’ll probably have the space you and your family need to live in comfortably.
Cons of purchasing a forever home
Some of the disadvantages of purchasing a forever home include having to purchase a property that is likely to stretch your budget that much further. Additionally, your expenses are likely to increase, as you’ll have a larger area to maintain. These expenses could include additional costs like having to maintain your lawn, paying for a higher utility bill, and purchasing all the extra furnishings you’ll need to make your property feel more homely.
Deciding on your budget
Ultimately, your budget will determine what type of home you can afford. You’ll want to factor in the cost of any home repairs or appliance replacement, especially if you’re going with a starter home. A smart way to offset such expenses is by insuring your above and beyond the required homeowners insurance. If you want coverage in case home systems or appliances break down, then a home warranty can be beneficial. Before deciding whether to get a home warranty, check the home inspection report for any red flags and check if there are any existing warranties on appliances and what they cover; this will help determine if it’s worth the cost.
Also, if you don’t have a lot of savings to put down on a home, you’ll need to qualify for a mortgage. The amount you’ll be able to loan will depend on various factors, such as your credit score, what your income is currently, how much of a down payment you’re able to make, etc. A mortgage loan calculator can help you figure out what your mortgage repayments are likely to be based on your unique circumstances.
You will also need to decide between different mortgage options, as different home loans require different down payments. For example, as Credit Karma points out, with an FHA loan you can probably get away with putting down a 3.5% down payment going up to 10% based on the purchase price of the property. If you qualify for a conventional loan, on the other hand, you may be required to put down up to 20% of the home’s value.
These pointers should be able to give you a rough indication of what each property type involves and how to go about getting a home loan, which should hopefully make your decision easier at the end of the day.
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Gainesville Restoration & Remodeling is a trusted full-service construction company specializing in commercial building, remodeling, roofing, and restoration. Text us today for more info! 352-554-0646