If you are looking to invest in a home that will quickly bring you a great return on your money, consider buying a starter home. In most parts of the country, the equity and value of starter homes are rising faster than all other segments of the market. What makes starter homes even more attractive is they are affordably priced. That means for a modest investment you can purchase a home and watch its value quickly rise by more than 8% on average. Additionally, because of its relatively low starting price, you have a ready market among first time buyers.
The stunning growth in the value of starter homes is not a one-off happening. Research has shown that this rate and pattern of growth in value for this type of home has been happening consistently over more than half a decade. During that time the equity in starter homes has grown by an incredible 44.4%. Since the housing crash, the market for affordable starter homes has grown unabated and the value of those homes continues to rise each year. Savvy investors realize purchasing starter homes as a great way to quickly build wealth while having real estate that is attractive to buyers of all ages just coming into the market.
With affordable starter homes appreciating in value rapidly, they are going fast. The supply of these homes has had a difficult time keeping up with the demand. The relatively low price of the homes and great potential for the growth of their value makes seeking them out well worth it. The limited number of entry-level homes is getting smaller and smaller each year, in turn making the market very competitive. Tampa, Florida is one of the largest housing markets in the United States, where people who own affordable starter homes are enjoying the largest gains when it comes home equity.
A starter home is simply a small home first time buyers can afford. There are several benefits to purchasing starter homes, especially in the current market. Interest rates are very low, a good mortgage rate will have a positive impact on the monthly payment, as well as the amount of interest people pay by the time the loan is paid off. With the low inventory of starter houses currently on the market, the value of and equity in your starter home will appreciate significantly if you buy one right now. In the past 12 months, the increase in starter homes values has outpaced those of more expensive properties in markets like Tampa, Florida, Las Vegas, Nevada and countless places in between. Owners can also make their money by using the homes as rental property.
Gaining Value Faster
Research done in over 450 U.S. housing markets by economists and data analysts has shown in most large markets, starter homes are increasing in value faster than homes that are much more expensive. This is good news for less affluent homeowners for whom their homes represents their largest investment and produces the primary source of their net worth. By simply purchasing an affordable starter home now, they dramatically increase their chances of growing their wealth. It’s a move that can potentially pay dividends for them and their families for decades to come.
A Great Incentive
Owning a home has long been a part of the American Dream. For people considering making a starter house the first home they buy, the quickly rising equity and values of these homes provides even more incentive for them to get their finances in order and make the purchase.
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