Should you invest in a starter home?  Or is it a better to wait and save for your “forever” home?

Economists often define a “starter home” as being in the lower third of the market’s valuation (as opposed to trade-up homes and luxury homes).

For many homeowners, a starter home isn’t about price.  It’s about how long they plan to stay there – typically only a few years.

That’s where the dilemma really lies.  Buying and selling a home, as well as moving in and out all have associated costs.

The bulk of mortgage payments for the first years goes to interest. You’re also unlikely to build up much equity if you only own the home for a short time.

According to one estimate, the break-even point for a starter home is someplace from 5 to 7 years.  In other words, if you are planning to stay in the home for just a few years, then it might not make sense to buy in the first place.

There are good situations in which a starter home makes perfect sense:

  1. If you are planning on staying in the home for 5 or more years, a starter home will save you money on rent and will help you build up equity.
  2. If the home has potential and you can imagine it becoming your forever home with the right renovations or additions.
  3. Still another option is if you are open to keeping the home and renting it out later when plans change.

Ultimately this will be a decision that is based on your own unique preference.

When you weigh everything, if you decide that a starter home might make sense for you there is something important you should know –

The best time to buy a starter home is now – that is because Fall is the season when starter home inventory peaks and listing prices drop, according to real estate’s Trulia.

This means you will have the most choices, and most affordable prices this Fall.

If you are curious as to the kind of homes available in Kitsap County now, give us a call,  (206) 842 8421 or (360) 697 9966, email

Serving: Bainbridge Island, Poulsbo, Kingston, Silverdale, Bremerton, Port Orchard, Port Ludlow and everything in-between.

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