First-Time Homebuyers Going for Gold: Should You Forgo a Starter Home?
Shopping for homes can be exhilarating – imagining yourself living and creating memories in each home you visit can create a flurry of emotions and excitement! While it’s pretty normal for first-time homebuyers to purchase a starter home for their first, it looks like a certain group of shoppers are doing something a little different.
Millennials are hurdling right over that traditional starter home and heading straight for that dream home.
A starter home is usually defined as one or two bedrooms – and most stay in a starter home for 5 years before moving into something bigger.
According to the Census Bureau, from 2012 to 2016, nearly a third of buyers aged 33-37 bought four-bedroom homes compared with about 24% in that age group who bought similar homes in 1980, 1990, and 2000.
If you’re a first-time homebuyer, it’s important to research your finances and overall goals before you decide to make this leap.
So, what should you ask yourself before deciding to jump over that starter home?
Don’t just think about the mortgage or down payment – think about any unexpected repairs that might need to take place with a larger home, if you need to update the lawn or any of its features, or if you’re able to fill the home with more furniture.
Starter homes can give you a little more wiggle room if something unexpected has come up. You may still be looking for a job, or only be a year into your first job, or haven’t had a discussion about having children, etc. All of these are items to consider when determining what the home means to you in the long run.
Starter homes are seen as a “trial run” of homeownership. You can essentially find the features you love or don’t need with a starter home.
It’s All Up to You
While there are questions you should ask yourself before purchasing any type of home – the decision is ultimately up to you. After researching your finances, and thinking about where you want to be in the long run, follow what you believe is best for you and your style.