Saving up for your first home is an important milestone as an adult. However, you may have had to make compromises for it to fit your budget. If you’ve been living in your first home for a while, it might be time to consider what your options are in finding a better investment for your money’s worth.
Letting Go of Your Starter Home
Many homeowners find it challenging to move away from their starter home because of nostalgia and stubbornness to purchase something new. By looking at your current financial state, you’ll realize that changing homes is a profitable solution for you in the long run.
If you’re still on the fence about upgrading your living situation, here are three signs that will tell you when it’s time to move to a better property.
1. You have a better debt-to-income ratio
One apparent sign for you to move out from your starter home is that you’re now in a higher financial state. A starter home supplements your basic needs to focus on saving up for your other essentials, such as a better car or mobile phone. Many homeowners choose their starter home out of necessity and convenience, and not particularly for its investment value. After saving up and having a better salary, you now have more options in choosing better real estate.
Your earning equity can help you in deciding if it’s time to move into a new home. Keep in mind that your living situation isn’t just a human need. You should also remember that it’s a long-term investment. After moving to another property, you can use your starter home for additional income by renting it out. If your debt-to-income ratio is better now than when you first bought your starter home, it may be time to look for viable real estate around your area.
2. You have more tenants renting with you
Another potential reason that you should move from your starter home is if you’re starting to have more residents. If you’ve been living with a partner for a while, there’s a high chance that they contribute to your living expenses. By being in a dual-income household, your opportunity for a wider and more spacious living arrangement is now ever-present. That also applies to couples who are planning to start a family.
The bare essentials of a single room studio won’t be enough if you’re on the road to have another tenant along the way. You will need to have enough space for a nursery room, which will eventually turn into their bedroom as your children grow up. Your need for more rooms and space is a sign that you’ll need a more spacious environment in raising a family.
3. You’re adapting to modern working conditions
One of the many challenges that the COVID-19 pandemic brought to businesses worldwide is the need to adapt to modern business models. A work-from-home setup is a trend that has been getting more traction every year, and now that people are refraining from working in offices, more and more businesses are using this format too. Creating a dedicated home office can improve your productivity levels while allowing you to maintain a work-life balance.
Conclusion
It can be challenging for first-time homeowners to let go of their starter homes. Nevertheless, it’s an essential step toward financial growth, which shows a greater awareness of one’s net worth and understanding of investment strategies.
If you want to find your dream home today in Genesee County, MI, our professional realtors can help you choose the right property that fits your budget. Get in touch with us today, and we’ll make sure that you have a smooth-sailing process in moving into your new home!