There is no better way to define success and stability than having a house of your own. Besides the shelter it provides, it is also a hard-earned investment that owners can be truly proud of. The tricky part of buying a home, apart from all the processes and requirements, is decision-making. Since the property is a big purchase, you have to think about your decisions well, including its long-term consequences.
One of the most important decisions you have to make is whether or not you will buy a starter or a permanent home. If you are faced with this tough decision-making, let this article help you understand what they are and what you should choose.
Starter or Permanent Home: What Is the Difference?
The main difference between a starter or a permanent home is how long you plan to stay in it. They may be the same house for the same purpose but might differ in structure and size.
Starter homes are usually smaller in size and are often purchased by first-time homebuyers who are just starting. Some examples of starter homes are semi-detached or fully detached houses, condos, and townhouses. They are also the more affordable option.
Permanent homes are houses that you see yourself living in for ten or more years. There is no clear definition of its look and size. However, since it is the house that usually accommodates a big family for a long time, it may contain more rooms than the starter homes.
So, before you decide, think about how long you plan to live in that place you are eyeing. Weigh the pros and cons of the two as well. Here is a good comparison of the two.
Why a Starter Home Can Be a Good Purchase
Anyone looking for an affordable and small house would benefit a lot from a starter home. Since it is more affordable, it also means that you would pay for a much lower down payment. Perhaps, you could also get a lower monthly price and finish paying it in a few years.
Just like other investments, it also has its flaws, such as the following:
- You have a growing family with changing needs.
- You have to finish its payment should you decide to live somewhere bigger or in a different location or lose your source of income.
What to Keep in Mind Before Buying a Starter Home
If you think a starter home is what you would need in the next few years, here are some things to consider before you make your purchase:
- The Cost of the Homes: Even if starter homes are not as expensive as permanent homes, they still require you to secure a mortgage. Make sure that the price you will be paying meets your budget. Looking for lenders who provide mortgage services and having your loan pre-approved would help you with your purchase.
- The Features and Amenities: Since you will be paying less than a permanent house, expect some of its features might not fit the dream house you have. See if you are willing to stay in a home that does not have a yard or miss a half-bath before you decide.
Whichever you choose, whether a starter home or a permanent home, the house you would get will be an investment. What you need to consider now are other factors, such as your priorities, budget, and plan for the future. Once decided, look for someone who can help you find a quality home that meets your needs.
Ottawa Mortgage Services is an Ottawa-based mortgage agent that can help you find lenders allowing self-employed Canadians with good records to qualify for the lowest mortgage rates. Contact us to learn how we can help.