Money Crashers: Should You Buy a Starter Home?

When Brian and I bought this house, we knew we were in it for the long haul. We planned to take our time fixing up this house, and the yard, to turn it into the home of our dreams. This was where we would grow our own veggies, plant fruit trees, build a compost bin, set up a rain barrel, bake fresh bread, have friends over for games, and generally build our ecofrugal life together. If it wasn't going to be our "forever home," it was at least going to be home for the foreseeable future.

The ironic thing about that is, I realize that many people, looking at our modest little three-bedroom minimal-traditional, would consider it a "starter home." For them, this would clearly be a transitional house - not your dream house, but the place you buy to live in until you can afford your dream house.

So whose approach makes more sense? Buying a starter home just to get your foot in the door and eventually trade up, or waiting to buy until you're ready to buy a home for keeps?

Well, there's something to be said for both sides. In my latest Money Crashers article, I explore the implications of buying a starter home: what you have to gain, what you're giving up, and what factors to consider before you decide. I hope this will be helpful for anyone who's considering buying a first home, and possibly even for those who have already bought one and are now wondering how long to stay in it.

Should You Buy a Starter Home as a First-Time Home Buyer?