3 Reasons To Skip The Starter Home
If you are a millennial thinking of buying your first home, you may want to consider following one of the growing trends: skip the starter home and go straight for a luxury house. Luxury homes can often cost double or triple the cost of a basic starter home, and you may wonder why you would shell out so much more money on your first home. But there are several reasons why it is good for millennials to skip buying a low-cost, small starter home and go straight to the home of their dreams:
Closing Can Take Significant Time
Often real estate deals can drag on for a significant period of time. This makes it likely that your current lease will be up or your current home may be sold before you close on your new home. This forces you to stay in temporary housing and disrupts your life. It can be a source of stress and anxiety, which millennials do not need any more of. While this happens with both starter homes and luxury homes, it is better to only have to go through it once rather than repeating it a few years later when you upgrade your home.
Millennials Likely Have a Plan for Family Growth
Starter homes were popular when couples were getting married younger and might not have been sure of how many kids they planned to have. Millennials are getting married later, making them more likely to discuss and plan how many kids they want in a realistic manner before they buy their first home. Because of this, you can buy a home that has the appropriate number of rooms and features for your family without second guessing yourself.
Additionally, many millennials are participating as freelancers in the gig economy. An extra bedroom can be used as an office until you need it for children.
You Are Likely Buying Later
Millennials tend to make their first housing purchase later in life, usually in their thirties rather than their twenties. If you wait until your thirties, you can save up a significant down payment to put towards the home of your dreams rather than investing a small down payment on a starter house in your twenties.
While starter homes may still be appropriate for some millennials, you shouldn't feel forced to follow tradition and choose a less-luxurious house to start with just because your parents did. Instead, start looking at luxury homes when you look to buy a house.