It’s easy to assume that the Southern Maryland home you’re currently shopping for is the one you’ll live in for the rest of your life.
I mean, it seems like a permanent decision, right? But as we all know, times change, tastes change, and even people change.
Over time, your nest might empty out – or become fuller. Jobs may be relocated. The neighborhood can change and no longer be the dreamscape it once was.
It’s good to keep an eye toward the future when making any major financial investment, your predictions may be hit or miss – unless your name is Nostradamus.
Southern Maryland buyers looking to buy their first home are faced with a tough choice: Should they buy a starter home or a forever home? Here are a few things to consider when making that decision.
Define “starter home,” please
“Starter homes” tend to be small – one or two bedrooms – and valued below the median price for the area’s market. The least expensive ones tend to be fixer-uppers that needs lots of work and renovations.
People move into starter homes planning to sell them several years down the road for a profit, using the equity to move into a larger home.
Others prefer to hold off on buying until they can buy their “forever” home. They may strategically save until they can afford their dream house, and, although it is seldom the case that they remain in that home for life, it is their intention to live in the home for the foreseeable future.
Pros and cons of buying a starter home
Southern Maryland starter homes require a smaller initial investment than their larger, fancier counterparts. There is also a chance that the value of that starter home will increase faster than that of a larger forever home. A good example of this is happening now, with so many homebuyers flooding the starter home market, values have skyrocketed. It’s a great time to sell a small Southern Maryland home.
Smaller homes are also less stressful on a homeowner’s budget – beyond the smaller down payment needed to buy it. Plus, your monthly mortgage payment could turn out to be less than your current rent, and the cost of maintenance and utilities will be far less than they would be in a larger home. Since you’re saving every month, it’s a good idea to set money aside for renovations to help boost the value of the home.
Let’s look at the flip side. If you’re young and growing a family, you will easily outgrow a starter home. And, starter homes tend to be older and may need more frequent repairs.
Holding out for that “forever home” may be tempting but not wise. With interest rates so low, the time to buy a Southern Maryland home is now and, although the inventory of starter homes is low, we’ve had great success helping our clients find them.
The important thing is to jump into the Southern Maryland real estate market soon so you can start building equity. That’s not going to be easy when you’re paying a larger house payment each month, more property taxes than those of a smaller home, and increased utility bills.
Questions? Feel free to reach out to us.
Brandywine MD Homes for Sale and Real Estate Services in Southern Maryland. You now have a search engine to help you with your Southern Maryland home search! And I’m ready to provide you with a custom home valuation if you’re considering selling your home. Let’s connect to discuss how I can help you. Contact Kimberly Bean at 301-440-1309