4 Factors To Consider When Purchasing A Starter Home

If you are looking for your first home, you are more than likely looking for a starter home. A starter home is one that is you can reasonably afford to buy that doesn't come with all the bells and whistles of a forever home. It is about meeting your immediate needs. When looking at a starter home, there are factors you need to consider.

#1: Space

First, with a starter home, you need to think about how much space you need. A residential starter home is usually a smaller home square footage-wise. However, you don't want to compromise too much with the square footage, as you will be living in the home.

You will want to think about how much space you need for the next three to five years, which is about the length of time you will want to keep a starter home before upgrading. Think carefully about how much space and rooms you need to live comfortably for a few years.

#2: Budget

Second, when looking at a starter home, you need to consider how much it will cost you to purchase the home. You need to look beyond the house's purchase price and consider the ongoing costs of the home. That includes property taxes, homeowner's insurance, maintenance and upkeep costs, and utility bills. You want to ensure that the starter home you are looking at is affordable and will allow you to build equity and not end up as a money pit.

#3: Goal

Third, you need to consider what your goals are when you purchase a starter home. A starter home is designed to be a home that you stay in for a short period of time before buying a forever home.

How long do you want to live in the home? Do you want to sell the house eventually, or would you like to rent it out? Knowing what you want to do with the home and your life will help you choose the right house.

#4: Location

Fourth, you will want to consider what location you want to purchase your starter home in. As this is a home that you are planning on sometimes selling in the short term, the location is essential. You want to choose a convenient location for your life, appealing to other buyers when you resell the home. Make sure the neighborhood you are purchasing the home in is appealing to a broader market.

When it comes to purchasing a starter home, you need to consider how much space you need. Next, you need to consider the overall cost of buying a starter home and how it fits in with your long-term goals. You also need to pick a marketable location.