When many people start looking for a new home, they wonder what they should choose and how much of an investment it will be. Although many people aren't quite sure about what their new home will look like, the fact of the matter is that there are many aspects to be mindful of when it comes to real estate. From paying attention to how much things cost to looking carefully at your options, it really pays to understand and apply a little wisdom before you break ground on a project. Check out these posts to find out great tips about real estate.
A starter home is one where the price of the house is below average for the area where the home is located. A starter home is designed to be an affordable home that allows you to get into the housing market. In general, with a starter home, the hope is the home will increase in value over a shorter period of time, allowing you to sell the house again and upgrade to a nicer home.
There are different categories of houses that tend to be priced below average for the general local area when it comes to starter homes.
Type #1: Small Homes
One type of starter home is a small home. A small house is one that is going to have fewer bedrooms or square footage than the average home in the area. For example, if most of the homes in the area are three to four bedrooms, a small home would be a home with one or two bedrooms, which will be seen as less desirable because it is less suited for a family. Or, if the average square footage for a home in the area is around 1,600 square feet, a small home would be a home with 800 square feet. Small houses are generally priced below other homes in the area, making them affordable starter homes.
Type #2: Fixer-Upper Houses
The second type of starter home is a fixer-upper home. A fixer-upper home is not necessarily a small home; it may be a larger family home. A fixer-upper home is a home that is not in the best condition.
With a fixer-upper home, you need to be willing to put in the time to improve the home. A fixer-upper home can be a great way to build equity, especially if you are up for doing the work yourself. This type of home will cost you extra money along the way, so only purchase this type of starter home if you have the skills and time to improve it.
Type #3: Attached Homes
The third type of starter home is an attached home. An attached home is a home that shares one of its walls with another home. There is a wide range of attached homes, such as condos and townhouses, as well as duplexes. As you don't own the entire building, and your neighbor is literally behind the wall, these types of homes tend to cost less than regular single-family homes.
Type #4: Less Desirable Locations
Finally, you can purchase a home in a less desirable location in your area. This may be an area with school districts that don't have the best reputation or an area with a long commute to the city, or a high crime rate. There is going to be something about the home that makes it less than desirable. The thing to be aware of with this type of property is that it may not appreciate in value at the same rate as the same home in a more desirable location.
If you want to purchase a residential starter home, it helps to know what type of starter home you are interested in purchasing. This will help you to narrow your focus. Remember, with a starter home, everything doesn't have to be perfect because this is just the first home you are purchasing. It is a home that will grow in value and allow you to upgrade to another home later on.Share
17 June 2021