Starter homes don’t always possess all of the glamour that you find in more expensive homes, but there is an unmistakable sense of fulfilment when you first walk into your home and take that first deep breath. They have a way of bringing families together for experiences that cannot otherwise be shared. As there’s a limited budget, the entire family comes around to paint, decorate etc. and even if it’s not the family, it at least gets you more in touch with your creative side!
Here’s why you should invest in a starter home for your adult child:
Starter homes are usually priced at the entry-level point. The good thing about this is that the demand for entry level homes tend to remain constant. Entry-level homes are the biggest market for newer home buyers – reason being, your children might not necessarily need a spacious two-story executive house with 5 bedrooms, but almost everybody, at some point in life needs an entry-level home.
A starter home can better protect your investment and appreciate at a higher rate than a move-up home. This provides you as the parent, added assurance that you are making the right decision in securing your children’s futures.
For example, in the global real estate market crash of 2008; where property prices fell well below 50%, when the market rebounded in 2012; it was the starter homes that emerged first from “underwater” status.
Yes of course your mortgage payment will be significantly lower because of the sale price, but that’s not the only thing. Other expenses that you may not have considered at first such as electricity and water will be significantly more manageable as well. It costs much less to air-condition a two bedroom than it does to cool a home twice or thrice that size.
How to Invest in a Starter Home:
Don’t get carried away. It goes without saying that you shouldn’t spend more than you can afford. When you’re spending that money on your child’s starter home (or even yours) you want to do it based on logic and common sense. Don’t get carried away by the amenities you see in the more expensive homes…as difficult as it may be.
Get pre-approved for a mortgage so you know what kind of cost you can bear. This will help us to narrow down our search for your perfect starter home; not to mention a fluid transaction and transition. The less time it takes to get settled in your new home, the better. Wouldn’t you agree?
Start your engines. Let the property search begin…the good news is you don’t have to look far, or anywhere else for that matter. At Tucker Real Estate, we have hundreds of property listings, just waiting to put in your offer. Once you’re pre-approved, we guide you through the entire process all the way to the close.
So why wait? Set your children down the path to life success!