If you’re interested in buying your first house and planning to expand your family in the future, you have to figure out if it would make more sense to buy a modest house and purchase a larger one after you have kids or to buy a forever home now. There is no right or wrong answer, but it depends on your circumstances.
Reasons to Buy a Starter House and Upgrade Later
If you have a relatively modest income and can’t save a large sum for a down payment, but you want to become a homeowner and start building equity as soon as possible, buying a starter home may be your best option. After you’ve lived there for several years and built up some equity, you’ll be able to sell it and move into a roomier house that will work for your growing family.
You may not be sure if you will have kids in the future or how many you will want to have. If you buy a starter house now, that will give you some time to figure things out. If you decide to buy a larger house later, you’ll know how many bedrooms you’ll need and what other features will be important to your growing family.
Reasons to Buy a Forever Home Before Having Kids
Selling a house, buying a new one and moving are all stressful. A purchase of a new home will also require you to pay several thousand dollars in closing costs. That can reduce any profit you might earn from the sale of your old home.
If you’re confident that you will have kids in the future, you know how many, you know where you want to live and you can afford a house that will be suitable for your future family, buying a forever home may be your best bet. You’ll be able to settle in, make any improvements that you want or need to make before you have kids and not have to worry about moving in the future.
Carefully Consider Your Current Circumstances and Future Plans
Research home prices in your area. Then look at your current income and figure out how much you could afford to pay for a mortgage, homeowners insurance, private mortgage insurance, maintenance, repairs and property taxes. You may be able to buy a forever home now or you may find that a starter home is all you can currently afford.
Think about your plans for your family and whether they might change. You and your spouse may know exactly how many kids you want to have and when, or you may be unsure and need more time to figure things out. Even if you think you’re 100% sure right now, your feelings or circumstances may change. It may be a good idea to buy a starter home now and keep your options open so you don’t wind up with a house that’s much bigger than you need.
