Owning a house is one of the most common goals of an average person, especially those who are planning to start their own family. It’s definitely fulfilling to know that you can buy your dream home where you and your life can stay for years. However, some people are starting to doubt whether it’s still worth it to buy a new property because of the rise in residential home costs.
In the United States, an average starter home can cost about $219,300 in 2018. This cost is 9.5% higher compared to the average cost of residential homes in 2016.
The Struggle of Buying a House
According to a report released by the National Association of Homebuyers, almost 50% of the people surveyed are unable to find a house that they can afford to buy. With this statistic, it’s not surprising to know that more and more people are preferring to stay renting properties rather than purchasing their own house.
t’s unfortunate, but if you really want to buy a new and bigger house in St. George, Utah or other parts of the United States, you need to consider a lot of things. You have to check whether if it’s practical to look for a rental property or buy a starter home or choose a residence where you and your family can stay forever.
Some people, especially millennials, are deciding that it’s better to rent longer and buy their dream home than purchase a starter home. Most of them think that it’s more practical to save enough money to purchase their dream home (a luxury home). They prefer this scenario rather than choosing a low-cost house, which they know won’t be their homes forever.
Alternative to Buying a Starter Home
By definition, a starter home refers to the first house that you will purchase. But, most of the time, starter homes are those properties that people purchase as their temporary home. This means, after some time, they will look for a bigger and more “livable” property. This is why sometimes, it’s not practical to purchase a starter home. Here are a few alternatives that you can do if you want to be practical about home buying:
- Rent a Property — You can continue renting a property while saving money to purchase your dream home. This means, you won’t be wasting money just to purchase a small and affordable property, which might just lose its value in the future.
- Buying a Lot First — This is another practical alternative that you can try. Find a residential lot offered in the market. Vacant lots cost a lot less compared to a lot with property built on it. Choose a location where you think that you and your family can live for years.
- Consult a Credible Home Builder — After buying a lot, you can consult professional home builders. You can ask them for assistance when it comes to planning the design and choosing the right materials for your dream house. They can also help you work within your budget. You don’t need to build a huge property immediately. You can simply request for a single-unit house first. Then, ensure that the current design can be upgraded or has room for improvements in the future.
It’s still worth it to buy or build a property, as long as you ensure that you will live on it for years. If not, you need to ensure that the starter home can be a great investment in the future. That means the starter home should provide you with additional income. If not, you can simply follow the tips mentioned above for a better alternative.