What are starter homes?
A starter home is usually a small and economical house. It is the first home of first time buyers that meets the current living requirements at the cost affordable to them. The idea is that after a certain amount of time, you sell the house at a profit. You then move on to a bigger home as your family grows larger. It usually takes a five year window, give or take, between the upgrading of homes.
Investment or Living Space
The idea of a starter home puts focus on the house being an investment rather than a place to live in. The idea is that you should sell at the cost greater than the cost to purchase the home. However, the common mistake is to not consider the associated costs of owning that home. After adding all the associated costs, selling the house may not seem like a good investment anymore.
The following are the typical expenses associated with owning a home.
- Moving costs
- Furniture purchases
- Appraisal fees
- Inspection fees
- Homeowners association dues
- Maintenance and repairs
All the associated costs of owning a home will eat away what profit you might have. That does not even consider the fact that the market fluctuates. It is entirely possible to be selling at a loss because the house did not appreciate as expected.
Owning a Home
Now, after all this, I am not saying it is wrong to purchase a home. Personally, my advice would be to purchase a home you intend to live in. Do it when the timing is right and the resources are enough. If you cannot afford the dream home now, there are many ways to get there.
For whatever home you purchase, protect it with the right insurance for you. The best protection you can have will always be insurance. No matter the investment, find the right deal for you. Sungate Insurance Agency has its clients as their first priority with affordable rates and clever policies. To learn more about how we can help you please contact our agency at (407) 878-7979 or Click Here to request a free quote.