What Makes a Good Starter Home?

A home is an investment, and your first home is an initial investment that will help you begin your journey up the housing ladder to your dream home and retirement.

How can you ensure that your first home is effective in this role? Below are some recommendations for what qualities make a great starter home.

1. Affordable. One of the most important things is for your starter home to be affordable. You are dreaming big, but you should start with a home that is reasonable for your current income and will leave plenty of room in your budget. Even a starter home will allow you to build equity quickly, which can then start gaining in value. You also will be able to save and invest more in other assets, building up your finances. These smart financial moves will ultimately get you into your dream home sooner.
2. In good condition and good bones. Try to purchase a starter home that is in relatively good condition, and will not need a lot of repairs or maintenance. A fixer-upper can be tempting if you are on a budget. But it is easy to become overwhelmed financially and in terms of time and effort with such a home, especially as it is your first. If you choose a fixer make sure your first home has good bones giving you a good base for your improvements. So, try to choose a starter home that will accommodate your budget and time.  Also, consider some Do-It-Yourself challenges to stretch your dollar and pump up your home value.
3. Upgradeable. While you should avoid buying a home that needs too much work as your starter home, one that could benefit from some work can be a good purchase. Do not hesitate if you can find a home that has some minor shortcomings you could improve with a few simple and inexpensive upgrades. By investing a small amount of time and money on improvements, you may be able to sell the home in the future for significantly more money. Price out your projected improvements up front so you know what to expect for your renovation budget.  Also add 20% or more to your budget to account for increases in material, labor, and changes to your plan. Many cosmetic improvements such as painting and landscaping are a great way to save you money and increase your home value.  So many tutorials online give step-by-step instructions for all kinds of equity-building home upgrades to supercharge your home equity.
4. In a market gaining in value. Pay close attention not only to the home’s potential but also of the market in which it is located. Is the market gaining in value, and likely to keep doing so? Is the home close to amenities and schools that will make it attractive to buyers later? If not, are there developments underway that will bring those amenities to the area soon?

Buy Your First Home in Washington or Colorado

You now know some of what you should look for in a starter home if you want it to be a good investment. To maximize the value of that investment, purchase your home with a mortgage that features competitive rates and terms.

Blue Square Mortgage makes it fast and easy to buy your first home. We can connect you with a suitable mortgage anywhere in Washington State or Colorado. To get started, please give us a call at (206) 352-6453.. We look forward to helping you move into your first home.