If you are thinking about purchasing your first home, you should consider looking for a starter home. Generally, a starter home is considered a home with around three bedrooms and two baths if you are looking in the suburbs. If you are looking for a starter home closer to the city, a starter home is usually considered a two-bedroom home. It is a nice home, but that is more basic on the side of amenities and features. A starter home is a good way to start and offered many benefits when it comes to a first home.
#1: Lower Expenses
One of the advantages of starting with a starter home is that your expenses will be lower. Starter homes are generally priced on the lower end of the housing market, which means that your mortgage payments should be smaller, as the home price is smaller.
Your property taxes will be based on the sale price of your home, so your property taxes should be more reasonable with a starter home. Expensive homes often come with expensive property taxes, which is why starting out with a more affordable home can make your property taxes more reasonable as well.
Additionally, a home with less square footage should also have lower electrical, gas, and general utility costs. When you buy your first home, you want to make sure you keep the expenses reasonable, which you can do when you invest in a starter home.
#2: Good Appreciation
When you purchase a home, you want the home to appreciate, which basically means that your home will increase in value. Allowing your home to increase in value as you pay down your mortgage will increase your equity in your home. When you purchase a home, you want it to increase in value. With a starter home, there is a good chance your home will increase in value as starter homes are always in demand, and you can afford to make upgrades that can increase the value of the home.
#3: High Level of Demand
Another benefit of purchasing a starter home is that there is always a high demand for starter homes. That means that you shouldn't have a problem finding a starter home on the market. You shouldn't have a problem selling the house when or if you need to sell the home. The high demand level is good for buying a home and selling a starter home and is an excellent all-around benefit.
When it comes to purchasing a residential starter home, you are making a good decision. Look for one in a neighborhood you like.