(Closed) Did any of you opt for a "starter" home instead of your "forever" home?

posted 4 years ago in Home
Post # 2
Member
1444 posts
Bumble bee
  • Wedding: June 2014

We don’t consider our house to be our forever home, because it’s 3 bedrooms and when we have kids we’d like to have at least one more. But our house is in a rapidly gentrifying area, according to Zillow it’s currently worth over 20% more than what our offer was.

Have you reached out to any realtors in your area? We found our realtor at an open house, and he was great. A local real estate agent can offer a lot of insight, and you don’t have to pay a cent unless he or she finds you a house!

Post # 3
Member
7814 posts
Bumble Beekeeper
  • Wedding: October 2010

My ex husband and I bought our house for 300K in 2006 at the height of the housing bubble. Two years later we were divorcing and tried to sell it and it appraised for $210,000. My current husband bought his house in 2007. Now, 8 years later he is still underwater for what he owes for it. Luckily we aren’t needing to move any time soon. I realize that those were bad times in the real estate industry- but it’s not always easy to sell a house when you want to- so you may be stuck in your house longer than you planned.

Post # 4
Member
1261 posts
Bumble bee
  • Wedding: October 2014

We purchased a brand new build townhouse in an upscale development knowing it wouldn’t be our forever home. We fortunately made about $40k in equity when we sold it a year later to buy bigger (again not our forever home. What we are okay with until we pick out land to buy and build on). I hate the idea of renting and homes (in our area at least) sell quickly making them a great option. 

Post # 5
Member
594 posts
Busy bee
  • Wedding: July 1993

I think owning is almost always better than renting. my first home was not my forever home.  The one we are in now was a fixer but I love they way it is now. We put a lot of work in it. I think VERY few people buy their forever home first time out. 

Post # 7
Member
1845 posts
Buzzing bee

I don’t think there is anything wrong with buying a starter home before you buy your forever home, but you need to be prepared to stay in that home for longer than expected if the property market doesn’t go the way you hope. 

Post # 8
Member
905 posts
Busy bee
  • Wedding: July 2013

We bought our first home at the end of 2013 knowing it would only last us through 2 toddler aged kids. Rent is expensive and a home is a good investment in our area. we will most likely rent it out when we move to a new place in 5 or so years. 

Post # 9
Member
9595 posts
Buzzing Beekeeper
  • Wedding: September 2015

I think it’s crazy talk to just buy your “forever” home outright unless youre a trust fund bebe. I dont know anyone who’s done that.

Post # 10
Member
788 posts
Busy bee

Ours is sort of both. The way it is right now is not how we want it to stay forever.  We’re pretty much planning to “flip” it to our dream home. I have drawn up the blueprints and my husband’s pretty handy so we plan to remodel and add onto the home we have now. We also bought it because renting is such a major waste of money and our mortgage is ridiculously cheap (half the cost of renting a 2bd apartment).

Post # 11
Member
1850 posts
Buzzing bee
  • Wedding: March 2012

bellanotte11:  We bought a starter home for $127,500 (1500sq ft, built 2007, 3bd2bath, nice neighborhood) because in order for us to buy our forever home the way we envision it being would require us to save up quite a bit as we’d like to live on a bit of land.

When buying our starter home we did make sure to account for resale value (our house could probably sell for about $20k+ more than what we paid for it just 2.5 years ago), and it needed to be able to house us until we do find/save for our forever home (for us that meant we needed the space to house at the very least us and 1 child comfortably). I didn’t want to be forced out of a home because we ran out of space. 

I personally wouldn’t buy a home unless I was planning on being in it for at least 5 years. Unless you are REALLY committed to the idea of renting this home out after you move, I wouldn’t. Being a landlord can be much more stressful/expensive than you’d expect.

Post # 12
Member
1553 posts
Bumble bee

Several years ago, long before we even met, my now husband moved out of his parents’ house and into his own, which he purchased. It’s a great house, you could easily raise a family here with room to spare. I would definitely call it a forever home.

However, neither of us like the state that we live in. We’ll be moving in about a year. The only thing I’ll miss is our house!

Post # 13
Member
381 posts
Helper bee
  • Wedding: June 2012

You certainly don’t have to buy a forever home, but it is almost never a good idea to buy a house you only intend on staying in for a few years.  There are calculators you can google, but closing fees, realtors cuts, taxes, any home maintance.  You will not get any equity in a year.

Post # 14
Member
3303 posts
Sugar bee

My SO owned a house for about 2 years, he only JUST broke even when he sold it (even with new floors, window coverings, kitchen and bathroom) but that was due to the property market at the time, and he couldn’t wait any longer to sell it.

We currently rent the unit we live in ($300pw), but once we are both working full time we will be saving for our first (read: start up) house. Even a shitty house that needs extensive renovations will cost us at least $400k. We don’t want to live in this area for ever, but probably will for the next 10-15 years. After that we plan on purchasing acreage and building our dream house a couple hours drive out of the city.

The average mortgage in my city is apparently $600 a week (for a $400k mortgage). Rent is AT LEAST $200 cheaper than that.

  • This reply was modified 4 years, 5 months ago by  RaccoonKitty.
Post # 15
Member
507 posts
Busy bee
  • Wedding: August 2014

We are searching right now for a home that wil last us 5-7 years. If we cannot find that, we will rent until we can. 

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