Like everything else, home prices are skyrocketing. Many young adults are buying homes later in life. When they can finally afford one, they are buying the home of their dreams rather than a starter home. So, how much does a starter home cost in 2018?
What Is A Starter Home?
The current real estate market has made the definition of a starter home very debatable. Most consumers imagine a modest home at an affordable price. Affordably priced homes in many areas are not really that affordable.
Why? Prices are so inflated that the only houses cheap enough for someone just starting out are falling apart and need extensive renovations. When the cost of fixing the home is added to the price, those houses are just as expensive as brand new ones.
How Much Will It Cost?
The cost of a starter home depends greatly on the city you’re starting in. In New Orleans, Atlanta, and Chicago homes in the $100,000 range are available. In places like Boston, LA, and Portland, a “starter” home could cost closer to $300,000.
lthough you could qualify for a higher loan amount, it’s important to get a solid understanding of how much of a mortgage you can truly afford before you go shopping.
When Should You Buy?
Most people get a license at 16 and a diploma at 18, but there’s no set age or time period for buying a home. Although loan options vary, you’ll likely be paying for your home for the next 30 years.
Buy a home when it makes the most financial sense for you and not a second sooner. Cheaper isn’t always better, and the fact that you can afford a mortgage doesn’t necessarily mean it’s a good time to buy.