Often when you buy your first home, many don’t consider it as a long-term home that will suit future plans. However, with a little bit of planning a good design, your first home could be your forever home, should it meet your long terms plans and requirements.
There are pros and cons when buying a first home as a forever home, but with the right information and a quality builder on your side, weighing up the pros and cons can provide the clarity needed when buying a first home.
Should you buy a starter home or hold off to buy your forever home?
Whether you are buying in the ACT, or anywhere in Australia for that matter, there are plenty of options for first home buyers. Many opt for a starter home as their first home and then move on down the track to their forever home, however, each and every one is unique, and there are pros and cons for both options.
Budget, location, number of rooms, amenities and even the layout all come into consideration when you are buying your first home, and for many, the key is getting their foot on the first rung of the property ladder, rather than finding the perfect forever home.
Pros and cons of a starter home
Like most things in life, there are pros and cons to consider when buying a starter home rather than waiting and buying or building your forever home down the track.
Pros to consider
- You will be able to buy a more affordable home
Often starter homes are more basic and won’t have all the mod cons, so you can get on the property ladder sooner and for less money. Often, they won’t be as large or have as many features, however, you can get into the market and start building on your equity.
- Buying a starter home in the current market offers grants and incentives
Buying a starter home in ACT or across Australia in today’s market will mean you can tap into first home buyers’ incentives, discounts or waivers on stamp duty and much more. Ask your accountant to bank about the tax benefits of buying a starter home as well, you might be pleasantly surprised.
- Start building equity right away
Building a starter home usually means that by the time you have completed your build you are starting to build equity, which you might be able to use down the track to invest in a second property or use towards vehicles or other investments.
Cons to consider
- The house might not be what you want in the future
When you buy a starter home, you are buying something that suits you now, throw in a few kids, a dog and a few other things you might acquire over the coming years and you might grow out of your starter home very quickly and require an upgrade.
- Not always in your dream area or location
Many starter homes are in estates or locations that might not be your ideal location, which means you may need to travel to be close to amenities, family or friends. While the starter home is affordable, this might mean you are spending more money on travel and entertainment in the long run.
Things to consider about a forever home
A forever home is something we can usually see ourselves living in for 20 years or more and would suit a family and the special occasions that may occur over the decades.
Often forever homes are far more expensive than a starter home, which means you might need to rent and save for much longer to be able to afford a home like this – however planning ahead is always a good thing whichever avenue you decide to go down. It is always a great idea to have a chat with your local builder to discuss what options will work for you, there are options for choosing a starter home design that can be added to down the track as your family grows or your needs change.
At Achieve Homes, we can help you assess your home requirements and present options that would suit your exact needs and budget. Whether you are looking to make your first home your forever home or you are interested in a starter home and then upgrade to a forever home down the track, we have plenty of designs and options to suit your needs. Have a chat with our friendly team to run through the options and guidance on which option is best suited to you based on your plans and requirements. Get in touch today to arrange an obligation-free chat with Achieve Homes.