First nest: what to look for in a starter home

Buying your first home is a momentous step. Your property will likely be a starter home that fits your budget and allows you to build equity. It's the ideal way to ease into the homeowner phase of your life, without the stress of huge bond repayments, high rates, and extensive property upkeep. As an investment, your starter home can lead to a bigger, better, and brighter future. Here's our advice if you're looking to dip your toes into the home buyer market.

What is a starter home?

A starter home is the first home which a person or family can afford to buy. These properties are modest, usually one or two-bedroom homes. While they have few amenities and may not be in the best location, their price point is attractive. They can help you move away from renting and be a stepping stone to your dream home. These property types can also be bought sooner; you won't have to save up for a downpayment since the property is more accessible. This is a popular option if you're a professional building your career, a newlywed, or a young family looking to get started. 

Starter homes should fit your needs for roughly the next five years, or until your circumstances change. If you see yourself living indefinitely - or for the next 20 to 30 years, you'd be looking for a forever home instead. 

What is the average price of a starter home?

Starter homes priced for the market would take first-time buyer salaries into consideration. The current average nominalised monthly take-home pay is roughly R15,042, while in real terms, the average take-home pay is closer to R12,412. If a bond payment of a third of that salary is used, a solo buyer in the current market should typically be looking at a home priced between R600,000 - R700,000. 

In Nelspruit (Mbombela), you'll find plenty of affordable property options. There are spacious houses, neat flats, and lock-up-and-go townhouses that are close to popular routes, shopping centres, and other amenities. 

Starter homes vs forever homes

When it comes to choosing between a starter home and a forever home, weigh the pros and cons of each option. Starter homes are great if you need a low price, less upkeep, the chance to save money, and a potential investment. However, you may find yourself in a smaller property in a less-than-desirable neighbourhood and surrounded by fewer amenities than you'd like. 

Forever homes, on the other hand, are better if you want to put down roots, customise your home, and have the peace of mind to grow into your space. However, these homes are more expensive, can potentially need more upkeep because of their size, and provide less flexibility if you need to sell before you're ready. 

What to look for in a starter home

On the property hunt, here are the factors to consider when choosing the perfect starter home for you and your family:

Affordability: Consider all the costs that come with property ownership: bond registration and transfer costs, bank initiation fees, moving costs, general repairs, bond payments, utilities, rates and levies. 

Goals: Before you buy a starter home, think carefully about your goal. Do you plan on changing careers? Do you want to start a family or adopt a pet? Or do you anticipate changes in your health? These questions can help you pinpoint a starter home with enough space, the right location, and the best chance of a resale when you outgrow it. 

Lifestyle: While a starter home won't meet all of your needs, it should meet the basic requirements for your short-to-medium-term goals. You should have enough space, be close to work, and have access to shops, schools, and healthcare. 

Condition: If you don't intend on staying for long, you don't want to be saddled with renovations that may take time and effort to resolve. Look for a starter home in good shape, especially if you plan on selling and moving on quickly. 

Location: Your starter home should be located in a community that meets your basic requirements. If you're having to do a long commute to work, the costs of petrol and traffic stress could offset any home savings. The location also impacts the resale of your home, so look for emerging neighbourhoods or the cheapest property in a more appealing address.

Property values: If there is a strong demand for starter homes in your chosen neighbourhood, buying a starter home can be a worthwhile investment. Look at historical home-buying data and average prices over the years - a property practitioner can assist you with a property valuation in this respect. 

Time to move into your starter home

Your starter home is the first step on the property ladder. Kellaprince Properties is ready to help you find the home that delivers exactly what you need. View our properties for sale, and get in touch with our friendly property practitioners today.