Purchasing a ‘Starter Home’ is Still Smart
Some people are skeptical about the thought of buying a starter home. It can be common for some to struggle with down payments – making people ponder over whether they should wait to buy a home. The decision to buy a starter home is not easy but here are some reasons why the starter home route can be beneficial for you.
It Builds Stability Quickly
The exposure to new decisions and circumstances means lots of lessons are learned from homeownership. Becoming a homeowner, you feel a sense of stability, you feel more grounded and a part of a community. Making a home truly yours is enjoyable. Having the ability to paint walls, add furniture and have guests over is an accomplishment you feel proud of.
Will Build Equity Sooner
Putting some money and time into your new starter home means added value for the future. By investing in home improvements you can take the equity you built and apply it as a down payment for your next home. Think, a starter home can actually be the key to helping you purchase the house of your dreams.
Tax Benefits Are Noticeable
Renting a home means all the money goes straight to your landlord, end of story. In theory, the sooner you own, the quicker you can save up some money. Once you own a home the interest portion of your monthly mortgage expense can be written off against your income. Say you spend $700 per month on mortgage interest by the end of the year a total of $8,400 can be deducted from your taxes. The savings are not only seen but also helpful in the long run.
Buying a starter home is a smart move if you think logically, purchase the right house, add improvements and be wise with your financial earnings. This decision will empower you to someday get into a larger home you have always wanted. Homeownership is an exciting life step but also a personal decision, so remember to stay within your comfort zone, use your realtor as a trusted advisor, and go with your gut feelings at the end of it all.