Starter Homes Part 1

Posted by Gurpreet Ghatehora on Sunday, July 27th, 2014 at 3:34pm.

Many people want to move into a brand new home where they don’t have to lift a finger to make the place livable. The idea of the starter home, for many people, is now about size rather than quality. In decades past the starter home was often smaller than desired, as well as older. First time buyers would purchase a starter home knowing full well that it wasn’t ultimately what they wanted, but rather simply what they could afford. This was normal.
With an older and smaller starter home, first time buyers were able to get their foot in the real estate door, without going broke. Over time the home would become more valuable as it was upgraded. New flooring, a new roof, fresh paint and maybe even a renovated bathroom or kitchen eventually, would allow the buyers to turn around and sell the home for a better price than what they bought it at – assuming the market was healthy or had improved since the time they originally purchased.
It was common for people to stay in their first home for anywhere from 5 – 10 years, with some people staying longer as their lives changed and moving became more inconvenient than the size or shape of the home. The benefit of these patterns were that people saved a lot of money and built up more equity in their homes. But do starter homes still exist these days? Of course this all depends on where you are living, as some markets are very expensive to buy in – whether you are buying a shoebox or a sprawling mansion.
All –in-all, starter homes do exist today, but the definition has changed quite a bit. While some people still adhere to the traditional idea of a starter home, as mention above, many have grown into a new concept of what exactly constitutes a first, or start home.

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