Buying a starter home is a smart financial move for many people. There are pros and cons to buying a starter home which are good to be aware of, even if you have already decided to move forward with a purchase. Let’s go over them now.
Pros:
- Move into a home sooner: If you can afford to move into a starter home now, that means that the immediate benefits of homeownership will be available to you, including increased privacy and freedom.
- Build equity and gain value: You can start growing equity sooner if you move into a starter home instead of waiting to buy. That means that you begin building up your investments more quickly.
- A stepping stone: If you sell the starter home for more than what it cost you to buy it, you will have the funds to move up to a better house in the future. You can do this repeatedly over the years ahead, until you can finally afford your dream home.
- A learning experience: First time homebuyers may not always know what they really want, as there are surprises that go with owning your first home. A starter home is a good educational journey before shopping for a forever home.
Cons:
- Competitive: Sometimes competition can be fierce for homes in the starter price range, particularly with the low housing supply these days. Buying your starter home may take more time and effort than you expect.
- Repairs: Starter homes may sometimes need repairs, which can be one of the reasons for their low prices. Make sure your home inspection is thorough and that you are prepared to handle any necessary repairs on your starter home.
- Mortgage hacking limitations: It is common for starter houses to be on the smaller side with fewer rooms. If you want to hack your mortgage by getting someone in to rent, you may not have anywhere to put them.
- Moving logistics: A starter home is not intended to be a forever home. The idea is to move in a few years to a nicer home, or one in a better location. That means going through the process of selling, then shopping for another house and another mortgage. There are logistical challenge and costs that go into that process.
Buy a Starter Home in Virginia
Many of the drawbacks of starter homes can be worked around. You can plan extra time for your home search, and take care to avoid houses that need too much repair work. Once you move into your starter home, you’ll be on your way to building equity, giving you your first step on the housing ladder. You’ll also enjoy the other advantages that come with having your own place.
To buy your starter home with a competitive mortgage, please give us a call at (540) 838-5868 to schedule your consultation. We can help you buy a home in Blacksburg or anywhere in Virginia.
