In San Diego, prices and interest rates are rising and the job market is improving. The result is an upward market trend for people looking for their first home. Interestingly, they have a feasible option: starter homes.
Buyers can expect to see a general increase in the demand for starter homes as entry-level homes. A regular entry-level home is worth $416,300 in San Diego, and there are now 26 percent fewer homes to choose from than a year ago. Those who already want to own a home by choosing a starter home will find this to be good news.
Being an owner of such a home is proving to be more beneficial as compared to being the owner of an expensive mansion. It’s truly an investment that will show a considerable increase in value.
Wondering why you should prefer a starter home living in San Diego? We have a few reasons right here!
It’s Easy To Build Equity
Starter homes are generally inexpensive as compared to larger “forever homes”. This leaves you with a possibility to build equity. On the other hand, if you're saving up for a home, there are higher chances to do so.
Remodeling May Add Value To A Starter Home
Couples may avoid starter homes because they wish to start a family. This means they’ll need extra space in the future. However, this is still possible with a starter home with a bit of remodeling.
At most, the children will need their own bedrooms and an additional bathroom which is not too much of a drastic change and will only add to your equity. It will increase your home's value in San Diego as well. Your money invested in this house will be growing at a much higher rate than the money you’d have been keeping in your savings account.
While remodeling the starter home, you can also look for home décor options various apartment dwellers consider, especially when they want to revamp a residential place that is smaller in size. Even if you’re not sure where to get started, you can check out neighborhoods and search how others have implemented trendy décor ideas.
You can Spend Wisely
When you have children in San Diego, a high priority is making a secure future for them. A bigger home is definitely no guarantee of that. So when you become more financially stable, instead of looking for a lavish new home, consider putting that money in areas that will give your family long-term security.
If the starter home with all the remodeling is serving the purpose, why should you buy a new home with higher mortgage payments that will eat away your monthly budget?
It’s Good To Avoid The Buying Cycle
Many families jump straight to buying the larger homes. They then eventually sell these homes and go for a smaller home once their children move out. If your family began with a starter home and simply remodeled it to fulfill your requirements, you could continue living the home you created all these years. It would even have a great value attached to it because of all the equity you built.
So try to avoid the big mistake many people make of skipping the starter home altogether. Chances are that your family doesn’t and will not need all that space. It's simpler to stay in your home and keep all the memories attached to it as well.
Those lucky enough to get a starter home in San Diego should know that such homes have gained more than 7% in value last year and around 65% over the last 5 years. This indicates something worthwhile: with the right mindset and plan of action, you can make a lucrative investment in a starter home of your own!
What do you think? Is this a housing market trend you'd follow?