The concept of a starter home is an American tradition that has existed for decades. Buying a starter home makes it possible to achieve homeownership, financial independence, and to build equity and credit while you transition to a larger home.
However, your first home doesn’t need to be a tiny, one-bedroom house with none of the amenities that you want.
In today’s post, we’re going to look at some of the things that are desirable in a first home or starter home, so that you can make the best financial decision now that will help you save more in the long run.
Top things to look for in your first home
1. Resale value
Perhaps the most important thing to think about when buying your first home is the day that you eventually decide to sell it and upgrade. There’s a lot that goes into the purchase value of a home. But, if you maintain the home or even make some upgrades, there’s a good chance you’ll be able to sell it for more than you paid.
Other factors that affect resale value are the location and real estate market trends. While you may not be able to change the economy, you can choose to buy a home that is in a location others will find desirable in the coming years.
The cost of your first home will be determined by its location, as mentioned before, but another huge factor will be the size or square-footage of the home and yard.
If you don’t plan on having children in the next few years and don’t currently have kids at home, having several bedrooms and a large backyard probably aren’t huge priorities. This means you’ll be able to save by buying a small home on a small property.
Similarly, if it’s just you and a significant other living in the home, you may be comfortable with just one bathroom for the next few years. These omissions can save you a ton of money on your first starter home.
3. Transportation and proximity
Typically, when people buy their first home they are just getting settled into their career and may still change jobs a few times. Most workers in today’s economy change jobs between 10 and 15 times throughout their career and do so more often toward the beginning.
This means it will make sense for you to buy your first home within commuting distances to companies in your industry.
4. DIY and fixer-uppers
Homes that are in need of repairs or renovations can be a great way to save money and see a return on your investment when you decide to sell. Of course, there are limits to how many repairs are reasonable while still getting your money’s worth from a home.
You’ll know from your home inspection or by doing a walk-through with professional contractors how much work is required to bring the home up to standards. Use those resources to ensure that you’re making a sound financial decision for your first home.