4 Things You Should Look For When Searching For A Starter Home

Several first-time homebuyers seek out for their dream homes where they can raise their own family. However, for some buyers, starter homes are the best way to learn everything about home ownership.

Basically, a starter home is the one you don’t intend to live in for a lifetime or for many years. But, instead, it’s a house you plan on occupying for a few years only before moving on to the likes of bigger houses for sale in Grande Prairie or anything that’s ideal for your needs and preferences.

However, if you’re planning to purchase a starter home, you have to ensure that it’s a great form of investment. For this reason, there are various things you should look for when finding a starter home, and these include the following:

 

    1.    Affordability

Usually, the price is the deciding factor when it comes to choosing a starter home. By nature, starter homes aren’t the houses you plan on staying in forever. They serve as a starting point for you to raise your own family or to make investments.

Even if you might be qualified for a hundred-thousand-dollar home, it won’t be the best deal if it’s way off above your budget. Instead, find a starter home that’s well within your budget and provides you with an additional breathing room in case a financial crisis happens. Doing this will let you save money, which you can spend on things such as hobbies, vacations, random life adventures, and family get-togethers. Never get into a bind. Once you’ve found the right price for a starter home, you’ll know that it’s time to purchase a home.

Remember that 2-5% of the home should be paid in closing costs. With this in mind, you need to borrow more if you don’t have that money on hand. In addition to that, think of the ways you may boost the value of your home as you live in the property, especially if you’re a first-time home buyer. In that manner, you’ll get the maximum ROI once you sell the house.

 

    2.    Location

The main purpose of a starter home is to build equity in the property and avoid paying rent while you work toward establishing a good financial position so you may purchase a home you’ll live in for a long time.

As such, you could choose a house that’s located conveniently near the places you tend to visit often and people you’re close with. This may help you make the most of your time while living in a starter home.

 

    3.    Neighborhood

Another thing that you should look for in a starter home is the neighborhood in which the property is located. The neighborhood may have big effects on the property value, and may either add more or lessen your stress in life.

Different communities offer unique amenities, which may include walking routes, pools, play areas, and some community building factors. If you see that your family is thriving in a specific neighborhood, you can say that you’ve found a starter home that’d work for you.

Other than that, the homeowner association can either make or break a community. It may require particular standards to be met, like music being played in the community or lawns being mowed. HOAs may also set up some community events and patrols. If you don’t like to deal with answering to somebody, you must choose a neighborhood that doesn’t have a HOA.

 

    4.    Space And Hidden Square Footage

If you could find a home that has underutilized or hidden square footage, it’s a good opportunity for investment. Some examples may include a garage that may be converted into apartments, unfinished space or walls that may be torn down to open the living area. When those elements are available, you’ve got an opportunity to add value to your house.

Many starter homes are small when it comes to size, which is the reason why they can be affordable. While you might have to compromise on space when buying a starter home, it’s essential not to compromise in terms of the number of bedrooms and square footage.

To make the most of your starter home, you should ensure that you have enough space for three to five years. While you might outgrow a starter home, the goal is to enjoy living there while experiencing comfort for several years.

 

Conclusion

Starter homes are, no doubt, perfect for first-time home buyers. They appreciate faster compared to move-up homes, which make starter homes a good investment and a potential income generator once you decide to rent them out. If you have doubts or hesitations, make sure to consider mortgage consultants to help you make a well-informed decision regarding home ownership.