When looking at the complicated process of purchasing a home, many young, would-be homeowners may become overwhelmed when they realize the home they can afford now may not be their ideal forever home.

When looking at the complicated process of purchasing a home, many young, would-be homeowners may become overwhelmed when they realize the home they can afford now may not be their ideal forever home. That two-bedroom may seem like enough space on your own or as a newlywed, but it’s easy to see how one may outgrow it as their family and housing needs expand. With that in mind, many wonder if it’s a better idea to purchase a starter home now and plan to move up down the road, or keep on squirreling away funds until you can afford the home of your dreams.  

It can take a long time to save for that perfect dream home. Meanwhile, the market has been flooded with some of the most favorable mortgage interest rates in years. Low rates make housing more affordable, which is why so many buyers have jumped on the home-buying bandwagon.

Home-price appreciation has also been strong, making very solid gains in communities across the country. It’s more important to pay attention to the market than to whether or not what you can afford right now is what you want long-term. When the market is in a great position, purchasing a home is a stable investment—one that will offer you a plethora of benefits, even if you decide to sell down the road.

If you purchase a starter home today, you can potentially begin to build value that can lead to the purchase of a larger, or more desirable, trade-up home in the future.