Buying a home for the first time brings many new choices for homebuyers. For middle-income buyers, more specifically, are faced with two choices. Do they settle for a lower priced, older home that is priced around $250,000? Or do they spend some extra money to find something a little newer or newly renovated in the $400,000 price area?Making the choice on how to spend your money on your starter home makes for quite the debate. Do you spend the money up front and get something nicer or save a little and spend it on fix ups? Spending the money up front will get you something larger and potentially better. You will end up paying more monthly but you will most likely live in the house for a longer amount of time.
Spending less for a smaller home is great to save some money up front and the monthly costs won’t be much more than what you’re most likely already spending in rent. Also smaller home means fewer furnishings you will need to buy. On the opposite of that is less space for storage and a potential expanding family. The question you have to ask yourself in making this decision is, does/will your lifestyle fit in this home?
So the decision is, do you stretch and spending more or do you stick to a more conservative price?
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