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Should You Buy a Starter Home or Forever Home

Should You Buy a Starter Home or a Forever Home?

When purchasing a new home, your main decision will be whether to buy a starter home or a forever home.

There are pros and cons to both, so it’s essential to weigh your options before deciding. Today, Frugal Gurru explains what you need to consider before making your decision.


When it comes to buying a home, affordability is a crucial consideration, as per Money Under 30k. While a starter home may not have all the features you desire, it is usually more budget-friendly than a forever home.

Opting for a starter home can help you save more money for a down payment on your dream home. Additionally, you can turn your starter home into an investment property to generate funds for your next home when you’re ready to move.

If you’re unsure how much you can afford, research mortgage options and talk to a lender about your budget. Before a bank approves your home loan, they evaluate various factors, such as your credit score, income, and employment situation.

They also consider how much you’re requesting to borrow. To answer these questions, you’ll want to have a clear idea of your budget before applying for a home loan.

Particularly for a starter home, part of your budget may be allocated to paying for a home warranty. The older the home, the more likely home systems – such as the HVAC and electrical – are long past their manufacturer’s warranty.

Given that homeowners insurance covers other areas like theft and personal injury to those on your property, a home warranty could make all the difference in the world. In fact, this could be the ticket when it comes to keeping you covered in case a system or major appliance breaks down.


The location of your starter home may not be ideal if you plan on starting a family or want to be in a particular school district. A forever home is usually in a desirable area you don’t plan to move from soon. Determine how long you see yourself living in the house and what type of location is best for your current situation.

With the proper research, you can find a location that can function as both a starter home and a forever home. Remember, you’ll want to find a marketable area if you plan to rent out your starter home in the future.


Do you plan on starting a family soon? If so, consider a forever home with more livable space. If you’re not planning on starting a family or if you’re single, a starter home may be a better option since you won’t need as much space.

A starter home is typically smaller and doesn’t have as many features as a forever home. Make sure either home has enough space for your current needs and plans.


If you’re looking for a long-term home with all the bells and whistles, you’ll want to purchase a forever home. A starter home is more basic and doesn’t have as many upgrades or amenities.

Some things you may find in a forever home that isn’t typically included in a starter home include a fully-outfitted kitchen, luxurious bathrooms, and a spacious backyard.

Naturally, your amenities depend on your lifestyle and needs. You can also renovate a starter home to include these things, but it’s more expensive than buying a forever home that already has them.

Find the Right Home For Your Needs

When deciding between a starter home and a forever home, it’s important to consider your current situation and what you need in a house. With the right research, you can find the perfect starter or forever home.

When you find the right home, contact a qualified home inspector to have a professional property inspection performed. 

Frugal Gurru offers practical, detailed financial tips for today’s world. Feel free to browse our archives!

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