Trends report the second wave of Millennials now entering into the real estate market making their first property purchases, most of them being starter homes. A starter home is the first purchase a person or family acquires. The term starter home is labeled as such due to the fact that it’s rarely considered or used as a forever home. With the market’s ever-changing fluctuation due to the multitude of rapid world events leading change, it can lean towards a superior or volatile market to invest in.
A few tips to remember when looking at listed properties as potential starter homes is the budget, location, and timeframe.
Budgets are usually on the lower end which means affordability is an important factor to consider. With location, property taxes should be reviewed when narrowing down listing options as they vary and can increase depending on area. Lastly, the timeframe is quite important with starter homes usually ranging stay for buyer’s at around 2-3 years in length.
Due to the fact that in most cases, starter homes are not forever homes, starter homes are able to get away with a few drawbacks. Knowing that these properties sell at a lower price-point than its competitors can be derived for many reasons. These properties are at times smaller is size and might need more restorative repairs.
Overall, when deciding that it’s your time to become a first-time property investor, taking the pros and cons into consideration is crucial. These determining factors can aid the search of listings and ideally find your dream property that best suits you.
