Chic vs. Geek: Starter Home vs. Forever Home
/Jumping into the homebuying market for the first time? Before you go straight to the deep end of the pool to find your forever home, think about the pros and cons of a starter home.
CHIC (PRO)
Affordability
Housing prices remain high despite a dip in the market, and a starter home makes more sense (or cents) if you need to stay within a budget.
Expedience
You won’t need as much for a down payment on a starter home, so you can afford to buy earlier.
Investment
You don't necessarily have to sell your starter home once you're ready to move. You can rent it out to generate a passive stream of income.
GEEK (CON)
Size matters
Starter homes are typically more modest than what you’d want from a forever home, and it may not have enough space for you right now either.
Interest rates
Mortgage rates are on the rise, so it might make more sense to wait on such a huge investment.
Buying to sell
Choosing a starter home means you'll eventually have to go through the hassle of buying another home and selling (or renting) this one.