This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.
Interested in a starter home? Read on to see when your first home is likely to be the home you stay in for good.
Image source: Getty Images
If you’re looking to buy a home in 2023, you may want to consider purchasing a starter home. Mortgage rates and home prices are both elevated this year, and buying a starter home might allow you to buy a place that works for your budget.
This year, 59% of prospective buyers say they’re looking at a starter home or fixer-upper, according to TD Bank’s First-Time Homebuyer Pulse. But don’t assume that your starter home is a place you’ll only live in for a handful of years. Here are a few signs that you may end up buying a starter home that becomes your forever home.
1. It’s in a neighborhood you love — where there’s not a lot of turnover
You might have your heart set on a specific neighborhood — perhaps one with tree-lined streets, nice parks, and access to amenities like shops, cafes, and restaurants. If the neighborhood you’re targeting doesn’t tend to see a lot of turnover (namely, because so many people love it there), but you manage to find a starter home, assume there’s a chance you’ll stay for the long haul — not because you can’t afford a larger place, but because one may not become available.
2. It’s large enough to fit your family from the start
Some people buy a starter home and then upsize once their families grow. But if your starter home can accommodate your family from the get-go, then you may decide to just stay in that home for the long haul.
Let’s say you’re a family of two adults and one child, and you’re certain you’re done having kids. If you end up buying a three-bedroom starter home, you may find that it offers enough space for you all to spread out and live comfortably. And you may also decide that it doesn’t make sense to upgrade and take on a larger mortgage loan when your current home is more than sufficient.
3. It’s a home that requires a lot of work
It’s not always the case that a starter home will require a substantial amount of work. But sometimes, that is the case. And if you’re buying a starter home you know you’ll need to sink a lot of money into, don’t be shocked if it ends up being the home you stay in for good.
It can be hard to save up for a larger or more updated home when you’re forced to spend money on many major repairs on your current home. And while you will, ideally, be able to build some equity in your starter home that could help you upsize in time, you may find that it’s just not feasible due to the amount you’ve spent.
Some people buy smaller homes to start with and make the decision to just stay put. If that’s a route you end up taking, know that there’s nothing wrong with it. If anything, it probably means that you’ve found a pretty great place to live, and that you can see yourself being happy there on a long-term basis.
Our picks for the best credit cards
Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has positions in Target. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.
