First time home buyers share a common dilemma. On one hand, most of them are on a tight budget and have limited resources. On the other hand, they have big dreams of the ideal house they would like to have.
It’s okay to have a wish list of features that you want in a home. In fact, it’s a very good idea. It will make your shopping much easier, and you will increase the chances of finding a property you like.
However, in most cases, the ideal dream home is far beyond the reach of many buyers, at least price wise. Even if their real estate agent is able to find a property with most of the features the buyer wants to have, the property may not be in the right neighbourhood or price range.
Getting into a starter home
You need to be flexible when choosing your first home. And if you’re not flexible with your wish list, you may miss out on some otherwise ideal opportunities. The perfect home, at the right price, may not exist on the market, but a property that meets most of your criteria probably does.
Unless you are status conscious, your first home doesn’t necessarily have to be your dream home. You could settle for a starter home, which you can afford with a small down payment and easy mortgage installments.
Keep in mind that a less-than-perfect property can potentially be improved. If the house doesn’t have a spacious kitchen, you may be able to expand the kitchen area – perhaps by adding a pantry in an adjacent room. There are plenty of lower-priced houses out there in need of repair, with some "Do-It-Yourself" projects you can add more value to the house. Be careful not to buy a place where the cost of repairs will eat up any profits you might make when you sell.
In just a few years you will build enough equity in your starter home to make it easier for you to sell and move into to your dream home.
Buying your first home is an exciting process. After all, your home could be the largest asset you’ll ever own. Being able to finance most of its cost will take a load off your back in the future.