Your First Home: Starter or Forever?

Now that you've decided to purchase your first home in San Antonio, Texas, you have an important decision to make. You can buy a starter home that's affordable, or you can spend more upfront and invest in your forever home. Read on to explore some factors to consider and some pros and cons of each option.

A Few Considerations

At the top of your list of considerations stands your financial situation. Before you even start house hunting, make a budget so that you know exactly how much house you can afford. Take into consideration your current income and expenses, what you've saved, and how much debt you owe. Calculate how much you can conceivably spend on a mortgage payment each month, and don't forget to add in utilities, property taxes, and insurance.

Many new homeowners forget about insurance, but it can be costly. Realize, too, that homeowner's insurance covers damage to the house's structure, theft, and injuries on the property. You can also purchase a home warranty. Among the best features of a home warranty is that it provides comprehensive coverage for your home's appliances and systems, such as heating, cooling, plumbing, and electrical.

Starter Home Pros and Cons

With your financial situation firmly in mind, weigh the pros and cons of purchasing a starter home and a forever home. Starter homes certainly cost less, and they might fit better into your budget at this point in your life. There's generally less upkeep with starter homes, too, since they're smaller and have simpler features. You might appreciate the coziness and ease of decorating such a home. If you move to a new home later, you can rent out your starter home and earn some income from it.

On the other hand, though, starter homes often tend to be fixer-uppers, and if you aren't especially handy, this may be a problem. A starter home may also just be too small, and it can be difficult to sell later. As your family grows and your needs change, you'll have to go through the process of buying another house and the expense of moving again.

Forever Home Pros and Cons

If your budget allows it without stretching too far, assess the pros and cons of buying a forever home right away. If you opt for a forever home, you can put down roots at once and not have to worry about moving at some point. Also, a larger home gives you room to spread out and grow. You can have enough space to entertain and pursue your interests now and extra square footage to use if you decide to have a family.

There are, however, some potential downsides to buying a forever home early in your life. For one thing, they cost more, and you might end up house poor, wrapping most of your income into your house, especially if you want to decorate in a particular way. A larger home also requires more upkeep, insurance, and taxes. It can indeed stretch your budget thin.

A Difficult Choice

Deciding on a starter home or a forever home isn't easy. Be practical and realistic, and you'll make the right choice. Then, visit the 2 Halls Property Team website to start looking for your new place in the San Antonio area.

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