Sticking With the Starter Home
Thursday, September 18th, 2014
A short article in the latest edition of CREBNow points out that, with house prices continuing to increase each month (Calgary’s growing faster than anyone), it’s becoming more difficult for young families to follow the traditional middle-class progression of graduation-marriage-first home-family-bigger home. Starter homes are selling for far beyond what a dream home might have cost in our parents’ day and, especially when interest rates inevitably increase, it can be difficult to ‘move up’ without a big boost in salary.
So what to do about this? How about picking the right starter home so that it can grow with your family over several years rather than seeming poorly suited for your family situation after just a year or two. With the right planning and a little vision, you can find that ideal property and plan to develop it as your family grows.
When shopping for that first home, look for a solid, well built and well-kept property with potential. Can an unfinished basement be finished to add a third bedroom and play area? Is there space to build a garage with a loft for storage? How about knocking out a wall to increase the size of the kitchen, or adding a sunroom-style mudroom to the back entrance to hold winter coats and boots. These types of upgrades, while far from free, can be a lot more cost-effective than shopping for a new home with comparable amenities. And by smartly investing in your current property, you’re boosting the resale value and socking away equity for when you really are in a position to move.
Beyond the property itself, carefully consider your neighbourhood – and consult with a professional familiar with the demographics of the area. If you are starting a family, is the home you’re considering located in a family-friendly area, with respected day homes and preschools nearby, plenty of park space, and kids riding their bikes in the evenings? How about grocery stores and restaurants? Is the commute to work reasonable, with transit options? Is this a place you could see yourself calling home ten years from now?
The days of buying a home with the intention of moving up in a couple of years are, for many people, coming to a close. But with the right advice and some careful thought, stretching that first home’s usefulness can really put you ahead in the long run.
This coming weekend is the Calgary Home + Design show; if you plan on attending and would like 50 percent off your ticket price (who wouldn’t?), use this link and enter promo code SHOWWEEK on checkout. Enjoy the show!
