Starter home or move-up home?

2 Replies

Hi Everyone! My husband and I are looking to buy a house for primary residence use.

I was wondering is it better to buy a starter home (3 bedroom, 1-2 bathroom, 1 garage) or a move-up home (4 bedroom, 3 bathroom, 2 garage)? Which kind of home will appreciate more? Assume its in the same city and neighbourhood.

We will need 2 rooms for us. We won’t be needing 4 rooms.

What's your budget? What's the end goal of the property? What's the investment strategy? 

It's called a starter home for a reason. If you purchase correctly it could turn into a cash-flowing rental. In most cases the bigger properties, in A class neighborhoods, don't cash-flow. 

Originally posted by @Amber C. :

Hi Everyone! My husband and I are looking to buy a house for primary residence use.

I was wondering is it better to buy a starter home (3 bedroom, 1-2 bathroom, 1 garage) or a move-up home (4 bedroom, 3 bathroom, 2 garage)? Which kind of home will appreciate more? Assume its in the same city and neighbourhood.

We will need 2 rooms for us. We won’t be needing 4 rooms.

My many smaller rental homes have appreciated much more together than my home.  

If your home is your largest asset - you're in trouble.

Will your home be your largest asset?  Buy starter and invest if so.