How do you know if a starter home is right for you? The decision to buy a home is a big one, and it gets even more complicated when you factor in the choice between choosing a starter home or a forever home.
New mortgage rules and restrictions are coming out each year, making it harder to qualify for a mortgage.
The rules are geared towards keeping Canadian household debt levels in check. Many consumers are holding off on purchasing a home because they don’t qualify for as much mortgage as they would like. This makes the dream of becoming a homeowner harder to reach…mixed with stricter rules, how do you even set foot into the housing market?
I would suggest buying an affordable starter home. There are many advantages to buying a cheaper home that you may not have considered. Here is a list:
Purchasing a more modest home will help increase your monthly cash flow and not leave you “house poor”.
You save money on the cost of utilities, property taxes and mortgage interest. The savings can be used to pay off your mortgage sooner or save a down payment for your dream home.
Smaller homes are easier to sell in a crunch.
If a new job opportunity came up in a new area, or something unfortunate happened, smaller homes tend to sell quickly. Why? Just like you, more Canadians are settling on buying less expensive homes because new mortgage rules are making it harder to qualify.
It is easier to convert a starter home into a rental property.
This will save money on fees associated with selling the house and can provide extra cash flow when the time comes to make a move into a bigger home.
With a smaller home, you will often find yourself with more spare time.
Lawn maintenance and house cleaning don’t take up as much of your time.
Stop throwing your money away on rent.
A starter home is a perfect home for first-time home buyers. If you are ready to buy a home, staying within your budget is important. Stop chasing a dream home and start living in a home.
Use me as a resource during your home buying journey. Feel free to contact me anytime.