Is Your New House a Stepping Stone or an End Goal?

Buying your first house is as exciting as it is stressful. With so many factors driving every choice, it's difficult to know if you've made the right ones until you're on the other side of it. Understanding your needs and capabilities will help you determine whether your new home will be the first step on a journey or the finish line where you'll remain your whole life.

Starter Homes

Though they may not be the type of places where you'll retire and live out your twilight years, simple starting houses have their fair share of benefits. These homes are typically inexpensive and small. This leaves room in your budget for any repairs or renovations they may need, while the cozy size makes upkeep more manageable. 

Starter homes aren't necessarily a place to raise your family, but they can provide for them later on. When you're established enough to purchase your next home, you might consider keeping the starter home around as a rental property. The aforementioned light upkeep required means this home could become a passive income for you, ignoring the few times you may need to help the tenant make minor repairs.

The tradeoffs for all these benefits are minor but notable. Starter homes are typically quite small. This makes it difficult to accommodate additional children, pets, and partners beyond those who were already there at the beginning. More affordable homes are typically in rough shape as well, meaning you'll either lose some of your savings to day one repairs or will need to develop the skills to perform the fixes yourself by checking out Mighty House’s videos.

Forever Homes

If you can afford it and know where you want to live out the rest of your days, you may wish to house hunt with the intention of putting down your roots permanently. This is a common goal; studies have found that two-thirds of people who are house hunting are also planning for retirement. These houses are usually large enough that you can expand your family comfortably, with everyone having room to grow with intimacy and privacy whenever either is needed.

A larger, more valuable house will be more expensive to insure. Homeowner's insurance will cover any damage to the house itself, as well as thefts and injuries on the property, but there are other types of insurance that you should consider. For instance, a home warranty can provide you with funds to repair or replace electronics and appliances when they break down. If you’re wondering how to find the best home warranty company, it’s a must to take the time to research and compare different providers.

These houses are more expensive on average, both initially and with property taxes later on. Their greater size also means more upkeep, not only with more floor space to clean but also more room for amenities and appliances that can break down. Your budget and needs will determine if the additional space and freedom are worth the additional costs.

Making the Choice

Which type of home you choose will ultimately boil down to your resources and needs. If you have a well-established source of income and could use the extra space, you could make your first home your last home as well with little difficulty. If you're still getting a foothold on your career, or simply do not need the additional space, there's no shame in starting small and working your way up later.

Whether you're looking for something affordable right now or trying to establish a legacy you can pass along to your children, consider what type of home is most practical while living within your means.