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.

Chic vs. Geek: Home issues you can’t ignore

Some home projects can wait until you have the time – or the energy – but some tune ups need tackling now. Let’s take a look at a few common red flags…

CHIC (PEARL)

Critters

The sounds of scurrying in the rafters or mouse droppings in HVAC grills are signs that you may have four-legged visitors. Check exhaust vents, ducts, utility panels, garage doors, and other access points. Look for gaps, signs of chewing or nesting, or ripped screening. Even a hole the size of a quarter is big enough for a rodent to slip through.

Mold

It’s natural to occasionally find mold in wet spots like kitchen and bathroom tiles, but when you see it seeping into your living room walls, it’s time to call a professional for an inspection and remediation.

Water

Standing water in your yard after a rain is a telltale sign that you have poor drainage. This could be caused by heavy, compacted soils, or improper grading. If water collects near your home’s foundation, it could cause costly problems.

GEEK (KEVIN)

Roofing

It is essential that you inspect your roof on a regular basis – at least once a year. Missing shingles or other signs of damage should be addressed right away, because the costs of neglecting them can escalate very quickly, especially if we finally get some rain.

HVAC

Even in our temperate Silicon Valley climate, heating and air conditioning are key components of our quality of life. And you shouldn’t ignore that noise your A/C unit is making just because we’re entering the colder months. Get it checked out or risk paying through the nose when it breaks down during a summer heat wave.

Plumbing

What’s that smell coming from your kitchen sink? If a plunger isn’t enough for your investigation, call a professional and get it checked. Trust me, you don’t want to wait to deal with that mess!

The Rent is Pretty Darn High, Too

With increasing interest rates and inflation catching up with the real estate industry, rents are also on the rise, making a lot of folks dream of a fixed-rate mortgage. Want to see the trends in your city? Use this tool from Zumper.

Chic vs. Geek: Paying you back in any market

From building equity to built-in savings, there are real estate principles and benefits to help your property pay you back, even in a down market.

CHIC (PEARL)

Dual Purpose Investment

A home is both a current need and an investment in your future. You can find something that fits your family right now, but how will it suit you ten years down the road?

Valuable Savings

Mortgage payments can deliver equity, improve your credit score, and also serve as a savings account you can leverage now or tap later.

GEEK (KEVIN)

Tax Considerations

Like other life changes, homeownership comes with tax deductions, credits, and other perks. Ask your accountant to get you started with a mortgage payment deduction.

Protection from Inflation

Rents rise with inflation, and sometimes to pay for building upgrades, but payments on a 30-year fixed mortgage remain the same for, well, 30 years!

Want to learn more about the benefits of home ownership?

Weekend Gratitude: Coffee

Yesterday was National Coffee Day, and tomorrow is the international version, which means it’s time to celebrate our favorite beverage-slash-life-giving-elixir. And check out this list of freebies and deals from your favorite coffee providers.

By the way, it’s probably not the reason why any of us started drinking coffee, but anyone who loves a cup or two or three in the morning — and sometimes at one in the morning — will be glad to hear that it’s helping prolong their life. CNN has the details.