Comments on: Should we buy a ‘starter house’ or just ‘one-and-done’?

By: Chris

Chris — Thu, 23 Apr 2009 22:20:38 +0000

I am having a similar debate, but my timeline is to buy sooner than you. Now that we have a baby, it is time to stop renting. I’ve looked at several starter type homes, and one thing I noticed is that a lot of them have one children’s room for a child who is obviously a toddler, and usually the family is just a bit older than us. If they are moving because they are already outgrowing the house, then surely we’ll be in the same boat in a few years. Therefore, I’m leaning towards the forever home.

By: Free Games

Free Games — Thu, 16 Apr 2009 12:20:48 +0000

My wife and I bought a house that was at the top of our budget, but we were still able to afford it. The bonus was that it was in a nice location with a lot perfect for raising kids, and had enough bedrooms for the size family we were planning. Now, 6 years later, our incomes have grown and we are living comfortably in the house and able to save a good amount every month. I am happy we did this because we don’t need to think about moving right now as we are having children, and we get to continue living in the same place where we are making memories and doing little things like planting a tree when we got married, building a garden, etc.
I’d recommend to go for the house where you can stay put, since every time you sell you’ll be paying 5% in realtor commission fees if you need professional help to sell it, pay closing costs with every move, and I dont see houses appreciating at a high rate anymore making it hard to justify all those “transaction” fees.

By: Judy

Judy — Wed, 15 Apr 2009 16:30:31 +0000

Another possiblity for you…We live in the suburbs of Pgh and bought a 2Bed 1 1/2 bath for 55,000 in 1998. We’re paying off the mortgage this month. We’re going to put that payment amount (more than P&I obviously if we paid it off in just over 10 years) into savings for a few years and between savings and home equity we should be able to purchase a $200,000 home with cash or a very small mortage. We were about your age when we bought this house (I was 25).

By: Dani

Dani — Mon, 13 Apr 2009 02:00:43 +0000

I remember when we were looking at the house we are in now back in the fall and my husband said to me "can you see yourself staying here forever" which scared the crap out of me. Mainly because I am a nomad. I think he considers this our forever house. I am still undecided although I love it and so far our neighborhood and our neighbors. It has plenty of space too with a basement and third floor to finish. I guess my point is, even if you dont buy a forever house, buy one that you plan on staying in for a while or one that, if it should turn into a forever house, you will not regret it.Dani's last blog post..Happy Easter from the Cookie Monster

By: Sunday Link Love! | Save Green and Live Green!

Sunday Link Love! | Save Green and Live Green! — Sun, 12 Apr 2009 22:49:06 +0000

[...] at Sense to Save asks Should we buy a ’starter house’ or just ‘one-and-done’? I have mixed feelings on this. I think I’d be happy living in an RV, so I think a small [...]

By: Shevy

Shevy — Sun, 12 Apr 2009 09:26:35 +0000

House prices in your neck of the woods are really, really cheap!

About 10 years ago, when I was a single parent with just one kid left in the nest I bought the only place I could really afford.

Brand new, less than 600 sq ft, studio plus den, for just under $100k and put 5% down. I eventually ended up in it with my 2nd husband and our baby. We sold it about 2 years ago in the mid $170′s. At that time it was still one of the least expensive places in the city.

Since then (after paying out the remainder of the mortgage) we’ve bought a manufactured home for cash in our intended retirement location and have invested money in the house Eldest Daughter and son-in-law bought. It’s a turn of the century house with a bad ’80′s reno on the “cheap” side of town and cost close to $700k (a little under the median home price). We each have our own area of the house and it works for us for now.

The ultimate plan involves buying land and building on it in our preferred area (about 4 hours away) but we will need our current place there until our “forever” home is complete.

The idea of starting with your “forever” house is compelling because it can be frustrating to “settle” for less than you want (or need). But, even if that’s the choice you make, be aware that your life may change in unexpected ways in the next decade or so (never mind in the next 50 years!). What is perfect for you now may not be later and it may not end up being the only home you’ll ever own.

By: Weekly Round Up: Better late than never edition | Frugal Living Tips & Money Saving Ideas | Living Well on Less

Sat, 11 Apr 2009 14:21:55 +0000

[...] to Save contemplates whether to save for a “starter house” or take more time to save for the house they really [...]

By: Marcy

Marcy — Sat, 11 Apr 2009 04:14:51 +0000

I would go for the “forever” house. We are looking to move in the next 2-3 yrs because we want to be in a better school district and I am dreading the move now that we have a little one (possibly more by then). I wish when we bought our house 8 yrs ago that we had thought more about family and schools. Now that I have a child I have a stronger desire to feel “settled”…not sure if you feel the same way or not.

I’m sure you guys will make the best decision for you. Good luck! :-)

By: S.B.

S.B. — Thu, 09 Apr 2009 15:06:12 +0000

The starter home thing worked for us because we bought when the market was hot about 3 1/2 year ago, but we bought a house that needed a lot of minor cosmetic upgrades – kindof do it yourself type stuff. Think pea green carpet, etc…

We sold our home last summer – put in on the market in June, sold by August and even with the bad housing market – we sold for $40,000 more than we bought it for. I think the starter home can really pay off if you buy a fixer upper.

But – what a scary nerve wracking process to sell with a babe in the house – all of the baby gear, trying to keep things tidy – to keep leaving for the showings of the house. Really hard to coordinate and manage. I’m glad we are now settled in the home where we can raise our future growing family!

The great thing about the starter home is what a lot of people said – you aren’t overwhelmed which a huge payment, lets you see what homeowner process is like. We were able to make extra payments towards our mortgage so when we sold we had a lot of equity.

For us it made sense to get the starter home because 3 and 1/2 years ago when we bought we had no kids and didn’t need a ton of room and wanted to do the fixer upper thing.

Since you already have a baby – maybe you want to skip the whole starter home thing since you may need more room. All of these comments offer great advice on the pros and cons – makes it hard to decide what is best to do!

I’m sure you guys will make the perfect decision! Good luck!

By: Abigail

Abigail — Thu, 09 Apr 2009 06:40:17 +0000

Wait.

First, this market should tell you something: Being able to sell is never guaranteed.

Second, that’s a lot of work to rehab a house. And always have other people’s tastes in mind.

Third, you’ll be getting a house just the way you want it… and then leave it. Sounds exhausting to me.

I just think it’s a better idea to delay gratification for a bit and then get the exact house you want.

Abigail’s last blog post..Me & the big black dog