When it comes to purchasing your first residential property, it is common to start with a starter home. A starter home is a smaller single-family home, condominium, or townhome that you can afford at this point in your life, but that will more than likely grow out of over time. A starter home could be brand-new or a fixer up; it is more about the home price, which is on the lower end for the market for that area.
Benefit #1: Affordable
One of the most significant benefits of purchasing a starter home is that it will allow you to get into homeownership and start building equity in a physical property at an affordable price. A starter home shouldn't stretch your budget and should provide you with mortgage payments that are easy to make. Your mortgage payments for your starter home may even be less than the cost of your rent. A starter home is an easy and affordable way to own a home.
Benefit #2: Stability
Next, when you purchase a starter home, you will enjoy the stability of being a homeowner. You will not have to worry if your landlord will renew your lease or if they will sell the home. You can take comfort in the fact that you have a home that you can count on, that you will not have to move out of. Owning a home can bring a degree of stability to your life.
Benefit #3: Learning
When you purchase a starter home, you will be able to learn about what it takes to be a homeowner with a smaller home. You will learn how to take care of broken appliances and what it costs to fix a roof, all with a smaller home. That way, when you upgrade to a larger home, you will have the skills to deal with the type of maintenance and responsibility that a larger home will require, as you learned from your starter home experience.
Benefit #4: Investment
With a starter home, you are investing in your future. Each payment you make will decrease the amount of money you own on your home and build up your equity. If you decide to purchase a bigger house down the line, you can use your home's equity to make a larger down payment. Or you can use the equity to help finance other endeavors. You are investing in yourself and your future.
Purchasing a starter home will allow you an affordable entrance into the home buying market and provide you with a stable place to live while you invest in yourself and learn how to take care of a home.
Contact a local real estate agent to learn more about available residential starter homes.