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

posted 4 years ago in Home
Post # 91
Member
437 posts
Helper bee

We are in a starter home. A lot of people I work with giggle when I tell them it’s 1,300 sq. ft., but it’s a 3 bedroom/2 bathroom and in the part of the metro with okay schools. It’s an established neighboorhood with mature trees and large lots. A lot of the new constructions that people opt for in our metro area are built poorly and on tiny lots with tiny backyards. Those neighborhoods have many houses that sit empty or are on their way to becoming bank owned. Why people opt for those… I don’t know, the price tag? But guess what! We’ve been in this home since 2008. This home is almost paid off. We will rent it when we move into our “forever” home.

We purchased land and will be building our “forever” home in a nicer area. Why the change? We would be fine in our current house with one kid. If we have two kids it might get a little crowded. The killer is my commute to work. I travel 40 minutes each way every day on the worst streets. The new house will be in the best school district with a five minute commute for my husband and 25 minute commute for me. We locked in a full acre of agriculture zoned land IN THE CITY. We will be going off the grid. We’ve grown up.

To me, that’s the difference between a starter home and a “forever” home. People can live very happily forever in a starter home. A “forever” home will provide everything that you have come to learn is and will be important to you in life. Some things are worth waiting for.

You really need to be careful with purchasing a starter home if you only plan on living in it for two years. Are you looking at a 30 year mortgage? You won’t even touch the principle. You’ll only pay interest. Chances are that you will sell it for the same amount either, so don’t count on that. We can’t predict the market. Nobody will pay top price for something used that they can get for new for the same price. What about all of your closing costs now and then? What if the house needs repairs within the next two years and you choose to delay because you intend to sell and nobody will buy because they want that crap fixed? What about taxes? By the time all is said and done you will have spent well more than $13K.

IMO, you should rent.

 

Post # 92
Member
709 posts
Busy bee
  • Wedding: April 2015

I bought a condo before I got married for the simple reason that it was cheaper than renting in my area. Is it our “dream home”? No. but DH and I are only planning on staying here for 3-4 more years, but a 2/2 at 1,200sqft I do not think we will have a problem renting it out or selling. 

Post # 93
Member
1318 posts
Bumble bee
  • Wedding: May 2014 - NH

I’d buy a starter home only if you plan on keeping it after as a rental.  We own a two family and also bought another two family as an investment.  When you have a low mortgage and rents are that high, there is money to be made so I’d keep the property.  Once I finish school we plan on finding out forever home.

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