Was your first home a starter home? Are you currently in or currently considering the purchase of a starter home? It’s a great idea for many couples or families just starting out. It gives you the benefit of having those monthly payments go toward something instead of throwing rent money out the window. That’s the first obvious benefit. Another benefit is the ability to fix up the place inside and out, just the way you want it.
You might also find that a starter home makes a good investment in some cases. If you purchase a home that needs some loving care, and you are able to buy it well below market value, you may be able to fix it up over time and sell it a substantial profit. This may give you the opportunity to purchaser a nicer home in the future or apply a significant down payment to a new home purchase.
If you’re not adverse to living in apartment like conditions, you may also opt to purchase a duplex apartment or a home that has been divided into separate living quarters. Always make sure structures are up to code, especially if you choose the latter.
The beauty of purchasing a duplex is that you can live in one half and rent out the other. You may be able to rent out the other side for nearly enough to pay your mortgage, thus allowing you live practically free of charge. Of course, you will have some expenses, such as insurance, taxes, maintenance, and utilities, but without a house payment (or with a very small one) you’ll be able to save money for when the time is right to purchase a larger home.
When you get ready to buy another home, you can rent out both sides of the duplex for a monthly income, or you can sell the property. There are quite a few options to consider, all of which give you more freedom financially. The purchase of a starter home often has greater potential than many people tend to realize.
Always do your homework before making a purchase, to ensure that you get the best value for your money. Check out financing options carefully as well, and take your time when making a decision.
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