Tips for Securing a More Affordable Starter Home for Yourself
Owning a home is considered part of the standard American dream. However, many Americans struggle to find affordable housing that meets their needs. BankRate explains that the United States is facing a housing shortage, with a lack of inventory available. That doesn't have to mean home ownership is out of reach for you. Follow these practical pointers for finding a first starter home that you can afford.
Prioritize your housing wishes with a needs versus wants list
When you start your housing hunt, it's important to have realistic expectations. You want to avoid emotional buying and eliminate houses that are a bad fit for your family. One way to do this is to make a list of needs versus wants. Prioritize your must-have points, considering characteristics like location, budget, and space. Then, look at secondary points like aesthetics, room features, and exterior spaces.
Look for smaller properties, which require less upkeep
While you might dream of having a massive home, this isn't necessarily realistic. It can also be pretty impractical. Larger properties don't just cost more. They will also have higher maintenance costs. A small home has other perks too, such as requiring a smaller mortgage, offering a simplified mode of living, and being more energy efficient. You don't have to pay as much to heat and cool a more compact space, cutting monthly costs.
Consider a property that you can rent out
One common trick people use when getting a starter home is to get a space they rent out. For example, you might rent out the entire property and use that income to cover the cost of your mortgage. Another option is to rent out just part of the property. This can be possible if you have a basement with a separate entry, for example, or an addition over the garage. In the big picture, owning a rental property can also be a good passive income source.
Try out a modular house
If you're looking to save money when buying a house, a modular home may be the answer. Look for homes with features to help you save money on monthly costs. For example, MesoCore offers modular homes with solar panels. These can help you save money on your monthly energy costs. Buyers can put down as little as five percent to get a MesoCore modular home, making this an ideal option for first-time buyers like Gen Z or Millennials.
Leverage your house for business use
If you're going to invest in a property, make the most of it. You might use the space not only for personal but also for professional purposes—for example, with a home business. If you go this route, register the business as a limited liability company, which offers tax perks and minimizes administrative burden. Instead of hiring an expensive lawyer, use a business formation service. Just make sure to check your state's LLC formation rules before proceeding. For example, to start an LLC Florida, you need to file Articles of Organization.
Try working with a realtor
If you're still having trouble finding the perfect property to suit your needs, consider working with a professional real estate agent. These individuals have the network and inside knowledge to help you find homes that aren't necessarily available on the open market. Key Inspection services describe other perks of working with realtors, such as their ability to save you time and get you a better price, thanks to their negotiation skills.
Getting your first home is an exciting life milestone. However, starter homes have become harder to find as the real estate market becomes more competitive. Trust the tips above, like looking at modular homes, to achieve your dream of homeownership regardless.
Learn more about modular homes by checking out these Mescore models.
