Starter Homes Part 2

Posted by Gurpreet Ghatehora on Thursday, July 31st, 2014 at 7:13am.

So what is the new definition or trend in starter homes, if not what we are commonly used to seeing? Well, many real estate markets (especially in major cities) are very expensive to get into. Buying a home in an established neighbourhood can be quite costly, and based on the housing demand, could be impossible to find. As major cities in Canada continue to grow, so do the amount of development projects, which often provide brand new housing in a variety of styles and price ranges.

 

Because of this, many people are purchasing brand new homes for their first home. This means that walls and ceilings are fresh and unstained, flooring is new and environmentally friendly, and you won’t have to replace your roof or kitchen for years to come- if ever! The only thing that these brand new starter homes have in common with the traditional idea of a starter home is the size. While buying a brand new home in an ongoing development is the best way to get a good price, you are still getting a brand new home, possibly with all the bells and whistles (stone counters, hardwood flooring etc.) Assuming you aren’t filthy rich, as the majority of the population is not, then you still have a firm price range you need to respect. In order for you to respect this, your brand new home is likely not as large as you want it to be – or not entirely what you pictured.

While you may have lucked out with a new starter home, that home may in fact be a townhouse, condo or smaller single-family home such as a bungalow. In other words, it’s not exactly the two-story, fenced yard with a grand oak on the front lawn. But the compromise you have made is that you don’t need to sink any additional funds into it to make it livable, or even profitable on resale.
Modern starter homes are all about size, not quality. You can get a fabulous new starter home these days, but you will outgrow it quickly, and likely find yourself considering selling within the first 5 years.

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