According to the National Association of Realtors, the median price of homes bought by first-time homebuyers is over $250,000. As these properties have grown in value, they have been bought rapidly as investment properties.
With the growth of rental properties, there has been a shortage of starter homes over the past few years. Like many, the Staten Island real estate market has been affected by this shortage. This shortage has caused many prospective first-time homeowners to question whether or not they should buy a starter home.
Keep reading to learn more about the reasons to buy or skip a starter home.
Reasons to Skip a Starter Home
If you want to grow your family in the near future or aren't willing to settle, a starter home is not for you. By investing your money in a mid-tier home, you can make space for your future.
Let Your Savings Grow
When interest rates are high, buying a home can be very costly. If you are unsure of your financial stakes in buying a home, seek out a consultation from a financial advisor.
You can build up your savings account by skipping your starter home and renting. Over time, you will be able to make a down payment on your dream home.
Avoid Settling When Buying a Home
Even though purchasing a home can be extremely costly, many first-time buyers settle when it comes to buying real estate.If you are going to invest a sizable portion of your savings to buy a home, there is no need to settle.
If you are patient and prioritize your finances, you may be able to invest in a home that you and your family can grow into. No one gets excited about needing to move after every life milestone.
Reasons to Buy a Starter Home
Starter homes are a great way to build equity and lay down your roots. When it comes time to pick your first house, find a property that will retain its resale value.
Buying a Home Can Be an Investment
You can start building equity by buying a starter home rather than paying costly rent payments with no returns. Buying a starter home can actually be a very wise investment. With real estate shortages as a serious problem, starter homes retain their value really well over the years.
Learn to Maximize Your Space
People associate large homes with comfort and the ability to accommodate guests. However, when you buy a starter home, you will need to sacrifice some loftier items on your wish list.Although this may seem like a disadvantage of buying a starter home, many homeowners are very appreciative of a compact space.
When you sacrifice square footage, you are able to invest in more functional furniture and maximize your space. Houses with smaller square footage require less upkeep. Buying a starter home also lets you ease your way into home maintenance.
Check Out the Staten Island Real Estate Market
If you are wondering whether or not to buy a starter home, the choice is yours. Whether you choose to buy your starter home now or rent until you have saved and established a family, we are here to help.
Connect with us to learn more about the Staten Island real estate market.
Wonica Realtors & Appraisers are Staten Island's #1 independent full-service real estate firm, serving the needs of the community for over 30 years. Whether you are buying, selling, renting, or relocating, our staff of highly trained professionals will provide quality realty services with personal attention to your individual real estate needs.