There are many pros and cons to buying a starter home instead of just waiting and saving more in order to get the home you would actually want in the long run. The pros are that you get a sense of the responsibilities and freedoms that come with owning a home, you can start building your equity sooner, and you can start reaping the benefits from taxation. The cons, however, are the fact that the world is different today than it used to be, you might spend more than you originally thought, and the cost and the stress from having to move twice might just be too much to handle.
- Buying a home can create a sense of stability especially once you fix it up to reflect your own style.
- Staying in a home for a longer period of time can save you money. Not having to move means you could use extra money to make improvemts for whenever you are ready to sell your home.
- Buying instead of renting means your putting your money back into home ownership. However if your personal life changes you could be stuck with a house that doesn’t suit your needs.
“If you buy the right first house, are open to building sweat equity, and plan to hang out there for five to seven years, there’s a good chance that you’ll have made a smart move.”