If you’ve been dreaming of a manor-like kind of home, it’s fair to say that you may not be in a position to buy a huge property in the Beverly Hills area.
But you can’t be blamed. The price of houses have been rising steadily for decades – the average cost of a house in the 1960s was $12,700 while nowadays the average house costs $188,900.
Admittedly, salaries also reflect the inflation, but the cost of living has changed dramatically since the past World War II era. Things are not going to improve soon; as PinnaclePMC.com warns, houses are expected to double in price within the next few years.
In other words, it’s getting more and more difficult to place the first food on the property ladder, let alone buy your dream property!
But it’s time to accept that the profile of the modern homeowner is fiercely different from what it would have been in the 1980s and 1990s, one generation ago. The new homeowner loves it tiny!
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Fact #1: Your first home will be small
It’s fair to say that when your grandparents bought their first home, they consider it to be a long-term investment. The home was a place in which they intended to grow older together, have a family, and welcome their grandchildren. To put it simply, homebuyers then tended to stretch their budgets to buy a forever home. Future homeowners, however, are divided, as explained here: https://www.nerdwallet.com/blog/mortgages/starter-home-forever-home/. It’s true that purchasing a forever home means that you need to save for longer, as you may not be able to afford the house you want now. Similarly, the evolving market conditions encourage first-time buyers to invest in the real estate market while mortgage rates are low, and eventually sell and buy in a few years’ time. Needless to say, in those conditions, your first home is likely to be small, as more and more adults struggle with debts and poor credit score. Even with the help of credit repair companies http://repair.credit/best-credit-repair-companies, it can be difficult to afford your forever home as a first-time buyer. It’s, therefore, crucial to perceive homeownership as a strategy you can build up as you make capital gains from selling your former property to upsize.
Fact #2: You’ll learn a lot about stretching your budget
Interior decor magazines have all one thing in common: They set unrealistic expectations for first-time homeowners. You’re likely to struggle to create a sophisticated decor if you don’t know how to be creative with a tiny budget, which is what you’ll have to manage. Expensive leather sofas and exquisite high tech furniture might need to be put on a wish list to be consulted in several years’ time!
Fact #3: Tiny homes might be the future
You’ll be surprised to know that small homes, or tiny homes, are becoming more and more popular. Firstly, because they represent the perfect answer to the current financial situations, but also because they bring a minimalist renewal to the concept of homeownership and home management. A self-contained and even sometimes self-made property can help you to keep a cool mind and a positive bank statement!
The new homeowner is someone who prefers small over big: Small budget over large mortgage, minimalist interior, and finally small size. For the first time, everything that is big isn’t better anymore.