If you’ve decided to jump right into the homebuying market, the first question you’ll need to ask yourself is whether to buy a starter home or invest in a forever home.
Property investment, in general, is probably one of the most resilient and proven methods of securing lucrative passive income. According to RWinvest, the UK market alone has seen soaring rental yields and massive demand for property over the last few years – something which is expected to continue well into the future, with certain regions seeing increases of 11.7% by 2027.
Each of these home buying options has relevant pros and cons, and it’s wise to evaluate all the details associated with each option before making a decision because even a small starter home requires substantial investment. You can browse starter homes and forever homes on Tennessee real estate platforms. Also, if you’re looking to buy or sell property in Willenhall, estate agents like Redstones can assist you: Willenhall estate agents.
So, let’s compare these primary home buying options so that you can make an informed decision with absolute confidence.
Buying A Starter Home
A starter home is explained as a small home that’s suitable for one or two individuals. More often than not, these properties are one-bedroom apartments, small townhouses, or other relatively small properties that are typically considered suitable for young homebuyers.
The primary benefit of buying a starter home is that because these properties are smaller, they are also typically more affordable. This means you can pay off your mortgage loan a lot sooner.
In addition to this, you’ll also have the option to rent your starter home out when you’re eventually ready to buy you forever home. Otherwise, you’ll have an inheritance property for children, or you can sell the property for a profit later on.
At the same time, the downfalls of these properties are that they aren’t generally spacious, you will probably outgrow the property in a few years, and you might not be able to sell the property for much profit if you haven’t invested in meaningful upgrades over the years.
Investing In A Forever Home
A forever home, like those offered in Maidment’s house and land packages, refers to a dream property where you intend to live indefinitely, without plans of selling in the future.
These properties come in various shapes and sizes, and the main advantage is that you’ll have absolute living stability. You won’t need to buckle up for a future move, so you can settle in and enjoy life.
The only major downfalls are that your forever home will cost more than a starter home, you might need to hunt for a while to find a suitable home for long-term living, and you will need to be absolutely certain of what you want and need in a home.
There are relevant pros and cons associated with both options, but only you can determine which homebuying option is the right choice.
When it comes to deciding, weigh out the pros and cons, consider your budget and the relevant costs associated with buying and owning properties of different sizes, and create a ten-year plan to align your decision with your future goals.
Once you’ve decided, it’s wise to consider relying on a real estate agent to help you find your ideal property, whether you want a starter home or you’re after your dream house. A professional estate agent can help you find the most suitable property sooner, and they’ll help you negotiate the asking price and handle most of the paperwork for you, making the entire home buying process a lot more simple.
