Why a starter home is obselete
The concept of a starter home is starting to become obsolete in today’s property market… and here’s why:
Buyers have had to wait
Instead of sinking their hard-earned cash into a mortgage that couldn’t promise any immediate returns, some people have decided to continue renting until they felt more comfortable buying. They have the intention of buying when the market is a little better, so they can guarantee their investment wouldn’t be for naught, while also ensuring they’d get a great deal on their first place.
Buyers want it all
A starter home is usually where buyers rest their heads for about five to seven years before moving on… and hopefully up. People looking for a starter home usually have modest needs – a master bedroom and a second bedroom for guests.
But now more and more people are considering the future when buying their first home. They may look for somewhere bigger with a nice garden and an extra bedroom if they want to have children (or maybe a few pets!) in the next few years.
Today’s first-time buyers aren’t the 20-something newlyweds of previous decades. Because many of them have waited out the housing crisis, and saved up big money for a down payment in the process, they’re older and may be married with children already. So instead of upsizing after five years in a starter home, they’ll want the real deal where they plan to live until the mortgage is paid off.
Buyers want prime location
Sure, you can check all the boxes and make sure the house is convenient to your jobs, local shopping, and entertainment. What some people forget to to examine is the schools, along with going for a neighbourhood that’s ‘up and coming’ rather than already great. Opting for a location with bundles of potential can be a lot cheaper in the long-run – and the majority of the time the location actually turns out to be the up and coming place the estate agent promised.