Are you planning on buying your first home in the Austin Texas area? If so, like many home buyers you may be wondering if a starter home is still a smart investment? This is an understandable question to ask because the real estate market has changed a lot in the last 10 years and many people are now foregoing buying starter homes for forever homes.
How To Determine If You Should Choose A Starter Home Vs. A Forever Home
When determining if you should purchase a starter home versus a forever home there are wide variety of things that you should look at including the current condition of the real estate market, prices for the area that you want to live, how much of a house you can actually afford, and most important of all what type of a home you should consider buying.
Another important factor that you should consider when determining if you should purchase a starter home versus a forever-home is the cost of getting out of the home early. This is important to consider because with penalties and capital gains taxes you could end up having to pay may be more money than you initially expected if you choose to sell your starter home early in favor of purchasing a forever home.
Important Things To Consider If You Buy A Starter Home
Your lifestyle: Do you want to be in the middle of a big city, or are you fine with the ’burbs if that means you can own a home? If you want to live centrally, where real estate is the most expensive, you’ll probably have to start small. Dana Bull, a real estate agent in Boston with Harborside Sotheby’s International Realty, remembers when she bought her first condo at 22, she could afford only one well outside of Boston, and she had some regret as she missed being in the city near her friends. Consider what you’re willing to sacrifice, both in terms of location and size.
Your future needs: Bull says many first-time home buyers assume they’ll be in a home much longer than they actually are. She says young, single people sometimes don’t realize how quickly life can change. A job switch, new relationship or new baby can alter what you need in a home.
Zachary Conway, a financial advisor with Conway Wealth Group LLC in Parsippany, New Jersey, adds that selling a house can be stressful — especially if you’re in the midst of major life changes such as having a baby.
So, if your life is full of flux and you think you would stay in your starter home for only 1 1/2 to three years, it may be less stressful to keep renting until you’re ready for something large enough to meet longer-term needs.
Now Is A Great Time To Buy A Home In Austin Texas
If you’ve been sitting on the fence, waiting to purchase a home in the Austin Texas area, now is definitely a great time to buy because home prices remain affordable while mortgage interest rates remain historically low.
To view Austin Texas homes for sale contact me today by calling (512) 944-7378 or click here to connect with me online.