Starter versus Once-and-done
Posted by Gail | Filed under Home Buying
An interesting debate developed recently at a gathering I was at. The topic: is it better to buy a starter home or go for the once-and-done home you’ll live in forever. I’m not on one side or the other, but I did find the whole conversation interesting.
One reason I’m a fence-sitter is that I’ve moved so many ficken’ times in my life, I can’t imagine buying a house and living in it forever. While I thought the last home I owned would be the last home I owned, life spat at that idea and I was on the move in just under six years. Hmmm. So when I hear people contemplating the home they’ll live in forever, I can’t even imagine it.
I once had a neighbour who, at 70, was still living in the house she had been born in. Wow! She had watched neighbours come and go, houses get ripped down and replaced by “monster homes,” while she kept on living in the little bungalow her parents had bought so many years before. Talk about rooted.
The “starter home” concept isn’t something that I even contemplated when it came time to buy a home. I simply bought a house that suited my then needs. There was a little growing room, but not too much. And eventually I did move because I outgrew the house. So the next house was bigger, but again, it was something that suited my then needs.
The argument about buying once goes something like this:
- You won’t have to worry about buying high and then having to sell low
- Anything you do to improve your home, be it painting, flooring, or a brand new bathroom, would be for the long haul so you wouldn’t have to worry so much about return on investment (ROI). You could get things just the way you want them and then enjoy your space. Gone would be the need to “keep it neutral” because selling is always on your mind. And you would have to start all over again in a new house once you’d found your once-and-done place.
- You wouldn’t have the costs of buying, selling, buying again, and moving. And those costs can be substantial, so they shouldn’t be taken lightly.
The arguments for starting with a starter include:
- You’ll need a smaller downpayment, so you get into a house faster,
- You’ll have lower mortgage payments so you can have a house and a life too,
- You can use the equity you build up in the starter home to fund the larger home,
- Why buy bigger when small will do just fine for now?
Some people reject the idea of a starter-home because they sense they’d be compromising too much on the things they really want in a home. But lots of people feel so great in their starters that those homes become their once-and-done. Having found a great location, become used to a neighbourhood, and settled in, it seems easier to add a little extra room for the kids than to pack up and move. I think this idea is key if you’re planning on beginning with a starter: It should not be a home with which you’re just ‘making do.’ It should be a home in which you can be happy to live fully in now, for this stage of your life, even while acknowledging that someday you may be in another stage of life which may necessitate moving.
I think going for the Once-and-done home can present problems if people end up house poor. In anticipating future needs, some people over-commit to homes they can barely afford to carry, never mind maintain. Even a small down-turn in the real estate market means all their equity vanishes and they feel defeated. And even small increases in interest rates make those homes albatrosses, which people then must walk away from to maintain their sanity.
Okay, it’s your turn. Where do you weigh in on the Starter versus Once-and-done debate?
BTW: Thanks again to Saver Queen for arranging the picnic in the park. To the brave souls who dared the weather and then watched the skies turn blue, see what happens when you believe! I was very happy to meet you all. Now I have some faces to put to the names I see so often. Hope you had fun!
July 13, 2009 at 7:23 am
I think the once-and-done home is more common in certain parts of Canada than in others. I’m from Newfoundland and my Grandfather lives in the house his parents bought in the forties. My mother has lived in the same house for over twenty. With my dad it seems to be one house per marriage. Ha ha.
I really don’t see myself being someone who moves numerous times. Right now I’m in the first apartment I ever rented and have no intention of moving until I find the house I’m going to live in. This place isn’t perfect but I really don’t see any need to pack up and probably ending up in a place with higher rent and utility bills. The housing prices and rent prices in St. John’s have been going up not down.
So I see myself getting a once-and-done house as I’m that kind of girl. Although when I retire I’d love to take over my mother’s home (the house I grew up in) out around the bay. I think it’s most Newfoundlander’s dream to retire by the water.
July 13, 2009 at 7:25 am
I bought my first ’starter’ home almost 25 yrs as a single woman. It was a semi at the north end of city. A few years later I sold it and moved ‘up’ to a detached 3 bedroom downtown house – a ‘fixer-upper’. Over the next 15 yrs we fixed it up (mostly by ourselves) and then bought a larger 4 bedroom house in a nicer neighbourhood. We immediately finished the basement and rented it out, while we whittle away at renovating the rest of the place (mostly by ourselves).
We got what we could financially manage to sustain and enjoy. We figure with our skills/know how re: home improvements, we could both enjoy these various houses while using them as an investment in the long-run.
July 13, 2009 at 7:28 am
I am firmly in the starter home camp. In my mind, a “once and forever” home requires a crystal ball. Not only do you not know what you’re actually going to need over those decades (maybe you won’t have kids after all? maybe things won’t work out with your husband/wife and you’ll be facing single parenthood, etc.), but I don’t think you can anticipate your future salary.
An example for you:
Hubby bought a house long before we knew each other. He knew it was going to be a stretch on his salary at the time, but he figured his salary was always going to go up, so it could only get easier.
HA!
His housing payments started out at 45% of his take-home. Fast forward 3 years. The economy has tanked, and so has his job situation. In order to avoid being downsized, he takes the best job he can- a 12k pay cut- in another city. Suddenly payments are 58% of his take home pay. In order to move back to our city, he needs to take another pay cut, making housing payments 68% of his take home pay.
It can get ugly really, really fast. Why trap yourself like that if you don’t have to? Your options for your future are so much more limited when you’re trapped with a big, expensive house- “I can’t take that dream opportunity/that once-in-a-lifetime trip, etc. I have house payments to make!”
In our case, things never hit that catastrophic point, namely because we had my salary and very little debt, but we saw the writing on the wall and sold.
July 13, 2009 at 7:41 am
Addendum – I’m with Kate. I did the starter home thing…’growing’ the size of the home along with both a) our growing family, b) with a view to where my life would ‘grow’.
We live in Toronto. Our hobby is home renovations (tearing down walls is the glue to my marriage). Owning a home here over 10 to 15 yrs is a good investment. So we invest in our home and our kids.
July 13, 2009 at 7:52 am
Living in a condo at the present time but definitely not my last home. I do want to get into a town house or semi. I think a detached is nice too, but don’t think I’ll be able to afford, unless I take over my parents current home of 25 years.
I know moving is not fun, but the “what will be” factor of a new home always makes it exciting. Love the idea of renovating homes but again it isn’t going to happen (I think).
If you’re in it to make money, then jumping from home to home is the way to go …unless you’re already in a fantastic house and one day it will be worth so much more.
I have friends that keep buying homes, fixing them up, staging them and selling for a huge profit. Then they buy another home but bigger, and continue. They have gone from owning a home of $300K to just over $1.1 million by doing this renovation/selling. Yes, it took them about 10 years, but they did it. AND they still have just a $150K mortgage.
I don’t think living in a home for 50, 60 70+ years will ever do that for someone. The time invested is different.
July 13, 2009 at 7:59 am
We went the starter home route purchasing a little condo townhouse that was within our means and suited our D.I.N.K. lifestyle at the time.
Four years later with one toddler and another baby on the way we sold it and had enough for a good downpayment on what I’m hoping will be our forever house. Though, with a husband in the military there is more than likely at least one more move in our future.
And if that is the case, I am fortunate I live in a city (Ottawa) with a very stable real estate market even in this current economic crisis.
July 13, 2009 at 8:32 am
I think it very much depends on the people involved; one is not inherently a better choice than the other. In my own case, having moved “so many ficken’ times” as Gail put it (now in home number 21), I strongly wanted to buy a once-and-for-all house. (Enough moving!) So when buying, hubby and I concentrated on features than are unchangeable–location, nearby amenities, orientation (I’m an avid gardener so a south-facing backyard was a big want)–figuring we would renovate, redecorate and possibly add to a house to make it work once we had kids. Our once-and-for-all home was not a 2500-square foot suburban home, however; we both preferred the well-treed established areas, and now have a 1950s 3-bed bungalow (about 1100 square feet, plus developed basement). And it’s working fine with two kids and a dog!
But I can see why folks with interests and abilities in renovation would choose the starter route; ditto for those ultimately wanting a much larger, and more expensive, family home than they would need at an earlier (or later) life stage. I fully understand the potential financial gain to be had from flipping your primary residence, but in my own case the emotional / psychological factors won out. Selling a house is not always easy (esp. keeping it ready for showings with kids!), and moving is almost always stressful.
I also am not a fan of the way new homes are marketed; in my city there is a section in the paper with map of the new developments, and they are labelled: starter, move-up and executive. Let’s get everyone on the path to owning the same type of home in the same type of area! Are we sheep? And it does nothing to help urban sprawl. Yes, my older home costs more per square foot, but the yard is larger, there are all kinds of amenities in walking distance (schools, library, rec centre / pool, Safeway), lots of playgrounds for the kids (6 within a 10 minute walk), parks and natural areas nearby (which will NOT become future suburbs)…and a literal 10-minute drive downtown to work. In the end, it’s about personal choice, and how one wants to spend their time and money.
July 13, 2009 at 8:41 am
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July 13, 2009 at 8:42 am
While I went the starter home route – bought a little wartime bungalow and sold it at a small profit 4 years later. We know live in what is likely our “once and done” home – at least until way down the road when health issues may make living back in off the main road more difficult.
I think a lot depends on your location. What you pay for your “once and done” home here east of Toronto, would hardly buy you a condo in the city. If you can comfortably afford your “once and done” house, and are able to avoid moving, and all the costs and stress that go with it, then I say go for it!
July 13, 2009 at 9:07 am
My husband and I did the forever home too. He was in coop at university and literally moved every 4 months for 5 years. My parents divorced and in my childhood between the two of them I moved about 19 times. We both graduated from the same university, got jobs in the same city and know we want to stay her forever. We had an advantage not everyone has in the fact that he is 5 years older than me so when I finished university he had been saving for a house for 4 years, and from our education and wedding we had no debt at all.
We now have a 4 bedroom, finished basement new build and we love it. We enjoy fixing up things but love the fact that there are no surprises in our house. We have photos of the inside of every wall, designed our own kitchen and got to add all the technological marvals he wanted, like a projector screen on the ceiling instead of a TV in the living room. Even with just the two of us we made good use of all 4 bedrooms with him being a computer programmer he has a home office that any programmer would die for.
I think the trick is to just be smart about it. We spent a year and a half in an apartment that would fit in our basement and were stepping over each other all the time to get anywhere in the house so we could save up money for our dream home. Now we’re expecting our first child and our sewing room has become our nursery. We knew we’d have children whether they were born to us or if we adopted it was never a matter of if. So for us the huge house was a great fit. We spent two years painting and decorating and adding a fence, driveway, deck etc… and now it’s perfect and time for our little ones to come along and make their mark on the house.
I agree with everyone who said it needs to be about what you want and can afford. We were smart and only bought enough house that my husband can pay our mortgage and ALL expenses with just his paycheque. That way if I don’t want to go back to work I don’t have to and we just live simply and happy. But if we want the vacation and huge college fund then I need to work to put that away. Either way though I think if you buy smart and love your house it shouldn’t matter how you buy your home, as long as you love it and it doesn’t kill your fun life!
July 13, 2009 at 9:10 am
I always believed that the first house we bought as a family would be the one and only home. However, divorce intervened and I moved on. The second house I bought three days after my mother died in our home town. I didn’t live in it and it really wasn’t suitable but I thought that I would move there when I retired….I realized that I didn’t want to live in my home town after living in the city for 30 years and so I bought a home in the city – small, just right for retirement, a place for my grandchildren to come to, and sold the second home. For me, having my children attend the same school was important to me so I stayed in the area where they could attend school. My mother’s and father’s home was built by my mothers father and I had never known anything else and I brought that assumption with me when I moved to the city…live in the same house for practially forever. I realize now home really is where the heart is and not based in one particular home. Chances are that people will live in more than one home and I think it really depends on the individuals involved to make any house they live in their home. Even if you live in a rental or a home you are buying it is important to make the improvements that you need to be happy there.
July 13, 2009 at 9:22 am
My first purchase was a large loft in the west part of Toronto proper. (I say proper because it was still east of Keele, and not Brampton etc). When I bought it, it was entirely a stepping stone to our current house. In 5 years I went from single, to married, to married and expecting so it was a good idea to not plan on being there forever. We are now in what I’m hoping is our ‘forever’ house but we’ll see. It’s hard to predict the future.
One thing that my wife and I refused to compromise on was the neighbourhood. We know too many ‘former’ couples who have bought their forever house in the wrong neighbourhood (ie the outer suburbs, which relative to downtown Toronto at 5pm is not that far in terms of distance but is far in terms of communting times). So we paid a lot for a central Toronto location that gives us a virtually non-existant commute, and just got lucky that we found a house we can see ourselves in for 20 years too. But you never know…
July 13, 2009 at 9:28 am
We bought what I thought would be a starter home ( 3 bedrooms, 1500 sq ft ranch bungalow) 7 years ago when we were DINKS. Add 2 little girls into the mix and although some days I wish we had a bigger house we are still here. This house felt right from the 1st time we walk into it and we have decided that since the mortgage will be paid off in 5 years, perhaps we would benefit from gettting a cottage or a condo in Florida instead. I have become very creative with storage solutions, I get rid of lots of things as the girls get older. We have added a second washroom and we plan on redoing the basement to better suit our needs. Quite honestly, we love the house, the neighborhood and sometimes you have to work with and enjoy what you have.
July 13, 2009 at 9:46 am
It’s interesting how many of these responses are from couples
I’m looking at buying a small place (condo) in the next year. I want to get into the market, and I’m sick of waiting to find a partner/husband before I buy. As a result, I can’t afford my “forever” home, but that’s okay because I’m hoping that being single isn’t my “forever” lifestyle.
I hope my next home — with future hubby — with be our next home until we retire.
July 13, 2009 at 9:54 am
I believe that unless you are extremely wealthy a starter home is a must. We always refer to our first home as our “Practice House.” It was there that my husband and I learned to install flooring, renovate a bathroom, landscape a yard, repair plumbing, etc. We laugh when we look at pictures of the work we did. Unless you can afford to pay someone to do all your work or you happen to be Jim Holmes, it’s nice to have a cheaper, smaller home to play with first. Because we went with the starter home, we also started building equity in our early 20s, which helped make the home we are in now and the renovations it has required affordable.
July 13, 2009 at 10:04 am
my ex and i disagreed somewhat on this issue when buying our first home. He wanted a big once and done, I was content in a smaller “starter” home, smaller mortgage, in a great child friendly area.
Life entered and we divorced a year later, with 2 kids in tow, we attempted to sell and go our separate ways.
Long story short, with my parents help, i bought him out (not much equity in one year) and i stayed in the house with the kids.
6 years later me and my kids are still here, thriving, happy and stable.
Not a morning goes by that i don’t thank God that we didn’t over extend ourselves in the beginning.
July 13, 2009 at 10:11 am
Beth – as a single person at age 25, I bought my first starter home. I had always loved working with my hands so learned to do dry wall, etc. In fact, I created my own wedding dowry – full of home repair tools! (including electric saws, drills, sanders, and all the bits). When I realized my best friend turned out to be the ‘man of my dreams’ (I found out he not only did carpentry but plumbing & electrical works), I showed him my dowry while I proposed to him (the large bottle of red wine cinched the deal). And you know what – if I never met the right partner, I’m still glad I bought that 1st starter home on my own – within my financial means – and would do it all over again as a single person.
July 13, 2009 at 10:14 am
We thought we bought a “once and done” house. We had 2 kids and one on the way and thought we had tonnes of space. Now we have 4 kids and the oldest is approaching his teen years. All of sudden it seems we have outgrown the house. My theory used to be your house was never too small you just had too much cr@p. Well I can only get rid of so much stuff! But in 7 yrs we will be mortgage free and our kids will be leaving for school so we will be starting to down size again. It doesn’t make sense to me to upgrade now and downgrade in 10 yrs. So we are staying put.
July 13, 2009 at 10:34 am
I guess we bought our “once and done” house, but it wasn’t planned that way. My in-laws found the house for us, one of those you-know-someone-who-knows-someone and it was fully furnished. It was the neighbourhood that did it. I had actually grown up 3 blocks west of where we are. It is just under 1100 sq/ft. It has 3 bedrooms up and the basement was finished with a bathroom. Every once in awhile my husband would talk about moving, but then we would look at what was out there and where it was located and how much more of a mortgage we would need. Granted I only come from a city of 80,000 so it really isn’t that hard to get around. The advantage we have, bigger lot. Even if we wanted to expand the house or build another 2-car garage we would still have a backyard. I pointed out once to my husband that he grew up in a house smaller than ours and at one point all 4 kids in his family shared a bedroom because another family was downstairs and I grew up in a house the same size as what we have and we only had one bathroom. Now that my kids are in their teens, with one graduated, to me it doesn’t make sense to move, they will be the ones moving.
As for renovations, we have done the important ones, the furnace and the roof. With the cosmetic changes we want, it wouldn’t even cost $25,000 for everything. We just became mortgage free last Friday. We have agreed, no renovations for a year and then pick a room, that we we have all the money in hand we would need for that one space. We did buy some new doors this weekend because someone had them on sale – one for my daughter since hers has a hole in it from someone using their foot to open it and not their hand and a new one for us – with a lock! We do have to cut the doors down by 2 inches, because ours is an older house, but that isn’t too difficult.
For me it is more of a sense of being content with what I have. I get house envy really easy when I see these new homes, but then I realize if we got a bigger one that would mean more cleaning and I hate cleaning! My goal is to be debt free in 3 years and if we moved, that goal wouldn’t be reached.
July 13, 2009 at 10:38 am
TOTALLY OFF TOPIC, BUT THANK YOU GAIL!
Our bank has been converting to a new computer system, so debit cards don’t work or ATM machines from Friday night to Tuesday morning. I took out some cash I thought we would need for the weekend, but when I had looked at the budget amounts for the weekly jars I realized I was only about $100 short of what we would need for the week. This was like having Gail at my house because even if I wanted to I couldn’t use my debit card (my charge cards are already put away).
Thank you Gail for hammering the point home to always write down what you spend and only spend what you have and to make a budget. When I first did it and then looked at past bank statements, boy did we use the debit for stupid little stuff that if we had had the cash in hand, no way would we have spent the money.
July 13, 2009 at 10:39 am
There is no right or wrong answer to this debate.
It depends on the people involved, where they are in the timeline of their lives, and where they actually live in this great big world.
July 13, 2009 at 11:10 am
I bought my house 30 years ago for $68,000 because th eapartment I was living in was being renovated by a white-painetr renovator who jacked the rent by 1000%. I spent a lot of time making my house MY house, and will be a little sad to leave it when I get too old and sick and stupid to run up and down three flights of stairs. But the saving grace will be that that $68 thousand dollar house can sell today for $600 Thousand dollars!
July 13, 2009 at 11:15 am
I’m currently in my first home I purchased on my own a few years ago…by home I mean townhouse. I’m content here, the condo meets all our needs – good neighbourhood, central location, good school, university close by. My only child is graduating from high school in two years (it’s just the two of us) after that, I don’t see myself selling or purchasing another home right immediately. However, when my daughter moves out (hopefully after university), I plan to sell the house then rent or look for co-op housing and travel, travel, travel! I don’t think owning a home is the end all and be all…I feel quite tied down with the whole thing! I delayed purchasing this home until I was in my mid 30’s, now with a new phase of life on the horizon, I have no desire to own a home at all…co-op housing looks much more appealing! If I invest the money I would have spent on repairs, maintenance, upgrades, and taxes I would have paid on a house/condo of my own I think I may be okay…Plus I don’t have to worry about interest rates, property values, etc…I’ve looked into the co-op route already (in anticipation) I looks like I may be able to live in a much better area, one I could have never afforded to live in otherwise, closer to amenities, the beach, downtown, etc. Just some food for thought!
July 13, 2009 at 12:12 pm
GREAT TOPIC!
I have moved 48 times in my life (so far), my parents loved moving and were always on the look out to make a buck with their property or find a better fit…. it was an interesting childhood. We never went on vacation, we just moved and took everything with us! Thankfully we stayed in the same town at least.
The professional house sellers I know (aka Realtors) say that the average person’s situation changes dramatically enough to warrant a move every 5-8 years…. marriage, kids, more kids, career changes, health accomodations, empty nesters, retirement, etc, etc, etc. I have expereinced enough of those changes so far that I have a hard time with the “forever home as a first home” concept. HOW do you know what life will be throwing at you 10 years down the road?
As a young newlywed couple, we knew we had the energy to buy a fixer-upper to get more for the money. We also knew that being new to the home-reno idea we wanted to start easy. So our starter home was a sturdy little 1950’s bungalow that had been a rental for about 6 years in the college district. It was disgusting inside, but the location was very easy, the yard was rough but fantastic, the house structure was sound and the kitchen had a really nice footprint. At 850sq ft, it was not too much to take on, and with 3 bedrooms, we could grow a bit before being squished. Before we moved in, we took 3 weeks to gut the place of carpet, and we painted right down to the subfloor in ever room. The 70’s wood panelling got a fresh coat of white, so did the ugly battered cupboards, and the flooring was replaced with cheap and cheerful vinyl and carpet. Between that and ripping out some overgrown hedges that completely blocked the front window and the dark dingy bungalow was tranformed into a sweet little home for 2!
It was a LOT of work to beat back the yard and fix the bad renos that had happened over the years, but it was very much within our means and energy levels to do so. And when baby #1 arrived, we were happy to bring him to our home.
When the place felt too cramped with a 2 year old running around, we decided we were finished with renovating for a while, so home #2 was a new one. We were lucky that a 3 bedroom home is easy to unload in the college district (even a small one), and it’s cheerful, clean interior had it sell very fast, for enough of a profit to put us into a comfortable position financially with the new one.
We thought the second house was also a stepping stone in the real estate market, and we also though “new” meant, “care free”! LOL!!! One more baby and 10 years later we are still here. The roots are down for the first time in my life, and the forever home concept is almost believable now…. BUT life is getting ready to toss a disabled mother-in-law into our lives as well as the soon-to-be teenagers!!! So moving may HAVE to happen again to accomodate the new situations…
Long story short, the forever home seems like a beautiful fairy tale to me.
July 13, 2009 at 1:41 pm
We bought a starter home when it was just my hubby and I. Small, but with all the features we wanted. And affordable in this pricier area. We knew we’d likely want something bigger when we had kids, and behold when our 1st we 6 months old, my in-laws mentioned they wanted to move. We’d always said to let us know so we could buy their house. My husband was raised in it. It’s got a big yard, a primary school across the road, and is on a quiet, friendly street. So now with 2 kids, here we are. My oldest is now in school at the same place my husband went. I think/hope this is our house at least til the kids are grown and gone (because I move 20 odd times growing up myself). But of course life changes, so I can’t guarantee it!
July 13, 2009 at 2:04 pm
I wonder why there’s often this feeling of “start small” and “move to bigger” when the new way of thinking perhaps should be “start small and stay small”. I realize not everyone plans, as I do, to remain childless, but really, child or no child, why is the pervading thinking to “get bigger”?
A lot of people in pricey cities like New York and to a certain extent Vancouver (at least I think Van is starting to feel like NYC more and more!) have learned to live in small spaces and are okay with that. Small space means you at least get to enjoy living in the heart of a wonderful thriving city, close to amenities, close to work in many cases too, and daycares. I am so thrilled to see so many friends of mine happy in their small spaces. It allows them a different yet equally rich quality of life that people in fully detached houses in the suburbs have.
July 13, 2009 at 2:50 pm
It really depends on an individuals need and circumstance at that point in their life. A friends of our had bought a decent 3 bed, 1250 sq ft house abt 15 yrs ago. Fast forward 15 yrs, tho tempted to move ,their teenagers do not want to leave the neighbourhood and their friends n school so they r renovating, adding on and hoping that will be enuf.
For me v bought what v could afford, a 4 bed townhome tho a tight fit its all v can afford right now and pretty soon the oldest (in a couple of years) will be out of the house n we’ll have more space. If our circumstances change, perhaps v’ll move into a bigger place if not…..its not the end of the world.
July 13, 2009 at 3:34 pm
Having lived in Vancouver all my life, I’ve never even heard of this debate for first time homebuyers. This must be a luxurious decision for people who live in parts of the country where housing is affordable. It’s a simple decision here, if you can afford to buy a home, you buy it and are thrilled with whatever you get. After we made the decision to try for a detached house rather than a strata, it was a choice between a larger, newer fixer upper with a one hour commute or a smaller, older fixer upper with a 5 minute commute. Guess which one we chose?
July 13, 2009 at 4:16 pm
Chris, people start small and grow as they have more kids…or if they don’t have kids maybe they want to have room to have parties. The thinking to get bigger is so everyone isn’t tripping over one another.
Detached homes are preferable to semis because you’re not sharing a wall; which is nice when your neighbours are loud!
July 13, 2009 at 6:03 pm
I think I straddle the fence on this one. I bought what I thought was a starter home 6 years ago, and I have no plans to move soon. I think we could stay here for good if need be. Really, I just hate to move. So while I think that it makes perfect sense to get into the market in a way that you can afford, I don’t know that I would want to be moving up constantly, or at all.
I have 2 little kids now and I sort of expected that I would want more space when they arrived. It’s surprised me to discover that I’m cool with what I’ve got. I do have a yard and a detached house, though, so I might feel differently if we were crammed into a 2 bedroom condo.
July 13, 2009 at 6:37 pm
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July 13, 2009 at 6:43 pm
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July 13, 2009 at 8:09 pm
Totally off topic, but a huge thanks to Saver Queen for organizing the picnic. Gail, thanks for coming and being your awesome self. It was such a treat to hear that contagious laugh in person
July 13, 2009 at 11:08 pm
I think that in addition to the kind of person/people you are, it really depends on where you live and what the housing/rental market is like. At this particular time in Victoria BC, my fiance and I are looking at buying a condo, even though we can just barely afford the down-payment, and would not be happy staying in a one bedroom for more than a few years. Why? There are a few reasons. First, we are both living with family at the moment, we are both miserable in our situations (him due to family, me due to neighbours), and now that I’ve started my new job we will be seeing each other about twice per month if we are lucky — so getting a place together is an absolute must if we are to remain sane and remain together. And why buy something small now when we could rent and save? Because in this city, you cannot save if you rent. With the places we are looking at buying our total cost for mortgage, insurance, strata fees, utilities etc ranges from $875-$950/month. To rent anything near the same size in the same area would cost $1100-$1400/month — so if we want to both stay together and save money for the place we hope to end up, our only option is to buy the place we plan to sell in five years.
July 13, 2009 at 11:22 pm
Wish I’d been there for the debate. We never gave ’starter house’ vs ‘once and done home’ a thought in the dark ages. We bought what we thought we could handle which turned out to be a small two bedroom single home (hubby had to bartend Thurs., Fri., and Sat. nights till 2 a.m. to make it work….and teach besides…)
(
We’ve only had two homes…that one (which sold in a bidding war) and the one we’re in now that we bought in 1975. I love it here in my rut, but, things are afoot to sell and move in the future
My childhood included two moves, so I guess I’m not one who is used to a lot of change.
And, in the totally ‘off topic’ department….
There I was in ‘World’s Biggest Book Store’ just off Yonge St. on Edward downtown Toronto with a gift certificate burning a hole in my pocket. I decided I would treat myself to a book by our favourite author Gail. Imagine my shock when I looked her up on their computer and even though there were 16 listings – none were available! As Gail would say…Whaz Up With That????
July 14, 2009 at 12:16 am
I moved around quite a bit as a child. My parents showed pictures of the several homes that they had had via the moves and many years of marriage and 2 children to the young married, pregnant with first child couple selling their home – that was barely furnished – only for them to say, “the houses keep getting slightly bigger”. It was the last house that my parents would buy together- but likely only because my mother passed away when I was 17. That young couple had bought the 4 bedroom, 2.5 bath, double car garage home and couldn’t furnish it completely – it was clearly too much house for them and that was why they were selling.
My husband lived in the same house from the day he came home from the hospital until he moved out (and back :0) as a mid 20 something) and then out again when we were married. His parents just had their 49th wedding anniversary – my FIL doesn’t want to move – they have been in the house for nearly as long as they have been married – and they likely won’t move until their names come up at the retirement home in the near future.
My husband and I bought our first home strictly for the property as it was ideal for his business. It was a small 1100 sq ft 1 1/2 storey 2 bedroom house. Small – kinda – the layout wasn’t ideal – but we bought it for the property. Was it a starter home? Yes probably. Did I think that we would be here “forever” – maybe, maybe not – depends 100% on his business really. It certainly was a good buy for an investment as the property could be flipped to commercial. Three years ago we renovated our home by knocking it down to the ground/foundation primarily for the business and the fact that our family had grown. What is most frustrating is the fact that we have this new house – with the mortgage to match because we didn’t sell a house to buy a new one with the profits that come with selling a house that you have built equity into. In some ways I regret the renovation because of the nightmares and frustrations that it caused but for the most part I am happy with the house we have as it suits my husbands business and we can surely be able to have our daughters grow into teenagers in this house. When they stop sharing a room they won’t have big bedrooms but they can now each have their own and hopefully we will have the basement finished (when the planned spending basement account grows enough!) to add another room for guests.
Our house may not be our “forever” house but I know that my husband likely won’t want your typical subdivision home like I grew up in because his parents house was generously spaced from the neighbours (which he likes and comments that he couldn’t be so close to neighbours on both sides) and our house at our current location allows a similar situation – so if are not likely to move in the near future. Well, maybe if someone comes and offers us a lot of money …
July 14, 2009 at 12:35 am
[...] Original post: Starter versus Once-and-done « gailvazoxlade.com [...]
July 14, 2009 at 1:24 am
I’m with Chris. We bought a very run down starter that will also be our forever home. Each of the kids get their own bed room, even if they are small. The whole place is less than 1100 sq feet. It will be easy to convert to wheel chair accessible in a few years when the hubby’s mobility problems get worse. And when the kids move out, we can rent out the legal basement suite for extra income.
I firmly believe that kids need their own rooms, but not walk in closets or their own bathrooms. If your room holds you bed and dresser, do you really need a in room sitting area or a dressing room? How many cloths do you need to give them a room of their own?
I just don’t get the idea that forever = big. My inlaws (who I adore) are two retirees living in a five bed room house that they can’t afford to heat and soon won’t be able to maintain. If you REALLY want forever, you have to think about what you will be able to manage as a senior.
PS Linda – thanks for referring me to the Flylady website. I’m not quite that intense, but she has some good ideas
July 14, 2009 at 6:20 am
I bought my first home just over 5 years ago, thinking that it would most likely be my forever home. Fast forward 5 years, having jut remortgaged and in the middle of a complete exterior renovation and I have an offer for my dream job, which entails a potential move, and possibly selling my home. I never saw this one coming.
I love this little house ( just over 1200 square feet with an unfinished basement), but I’m open to selling it to the right person for the right price. I’d be a bit sad to sell, but home is where the heart is.
July 14, 2009 at 8:57 am
Thank you to everyone who came to the pot-luck and thank you to Gail, who drove 2.5 hours in a thunderstorm to get to Toronto! It was a wonderful time. The weather turned out to be gorgeous!
I just don’t think the once-and-done strategy makes sense at a time when people move around so frequently. Does anyone stay put in one place for a lifetime any more? I’ve moved between 1 and 3 times every year for the last 9 years, so I can’t imagine staying put for the rest of my life.
July 14, 2009 at 10:11 am
It’s a very interesting topic and one I am currently debating with my partner. It seems he wants a once and done situation because he doesn’t like change. It scares him. I, on the other hand want something to take care of my needs now, something I can afford comfortably and something that I’ll be happy in for now. I’ve moved twice with my family and 5 times on my own so far, so i understand that something down the line may change and am more willing to accept that this may not be the place we stay in forever.
Perhaps too, this difference comes from the fact that he hasn’t lived anywhere but the family home we are currently trying to leave. (save for a six month trial). I know that to get what we both ultimately want, it will take at least one previous home-ownership, so we can build the equity needed, the trust with the bank, and give us the time to nail down the finer points on those ultimate goals. The house I want I cannot at this moment afford, nor is the bank willing to take that risk on me yet. So I get that I will need at least one house move to get to where my goal is and I’ve accepted that.
Home renovation can get you most of the way to the goal you want, if you manage the initial hunt that way, but I’m not firmly rooted with buying once and being done. Life happens, so I like to leave that door open just a crack in case I need it.
Special thanks to Saver Queen for a great pot-luck. Big thanks to Gail for being who you are and making it through the storm to enjoy the beautiful day! Thanks to everyone who made it for even the littlest of time!
July 14, 2009 at 10:54 am
SQ & Pam;
I know what you both mean; until moving to the area that I am in now I moved 2x each year for University and many times as a child.
But truly I hate the “act” of moving. Especially since becoming an adult I have had to do the packing and moving myself rather than with movers as we did when I was a child. We had to pack up our home and 3 yr old twins when we did the reno and moved in with my IL’s for what was to be 3-4 months which turned into 9 months. And then move back to the house we currently have.
Since I moved as a child I really don’t have any truly solid friendships that come from that time in my life. My husband is still friends with 2 “boys’ that he went to Kindergarden with. That was 37 years ago. Because of my experience (when we moved we actually moved cities not just into another area of the subdivision) I want my daughters to have that too. So really it means that we likely to have this current property for many many years.
Especially if my husband wishes to maintain his business.
Life throws you loops and keeping a door slightly ajar is not necessarily a bad thing.
July 14, 2009 at 11:16 am
Erin, I’m so thrilled when I hear about families thriving in small spaces. Dwell Magazine often has features about this very topic. It sure does make you see that it’s not so much about the stuff you collect but about how you live your life.
July 14, 2009 at 3:35 pm
Two days until closing on my first house – a 3 bedroom semi-detached at about 1000 square feet. My husband and I don’t plan to have kids so we never really thought about starter vs. forever. We aren’t young (I’m 36) but last month we finished paying off my husband’s student loan (I never had any) and just looked for a house we could afford. We had a full 10% down (yes we paid $1800 in CMHC fees but with these mortgage rates I feel okay not waiting the 18 months until we had 20%) and enough money saved for all the closing costs and lots of little extras. We both made compromises – duplex for him, small kitchen for me but it is ours and we are excited. We imagine ourselves there in 19 years when we get the mortgage paid and we can imagine moving in 10 years if we chose to. It had a brand new roof, electrical box, oil tank, shed, furnance and doors and windows so it may be a starter but it isn’t being renovated. I just can’t wait!!!
July 14, 2009 at 8:20 pm
When I got pregnant two years ago, my husband and I decided to go from a 1400 square foot apartment at $1100 a month in an awesome location, to buying a house. We had the choice, on the same day, to buy the 1100 square foot semi we live in right now that had everything we needed but not much we wanted or a 2100 square foot detached with everything we needed and almost everything we wanted, but that was $40 000 more. We thought on it and decided that we would never regret spending less on a house, and bought the cheaper house (which also happened to be the cheapest house in a very nice neighbourhood). All of the major issues were pretty cosmetic, and now we love our house. And with a baby, I don’t have tons of time to clean, which makes this house easier to take care of.
I think the idea of “starter” vs. “forever” is wrong for home-buying: honestly, you should just buy for the next five years of your life. I grew up military, and I lived in 10 different houses before I was 17, while my husband lived in two his entire life. We’ve agreed that this is our house until we outgrow it (i.e. have more kids than fit in the tiny bedrooms) and we’re pretty content with that, whether it happens or not.
July 14, 2009 at 8:22 pm
I think that the most important thing about deciding on a home to purchase is that you will be happy to live in it, for whatever time that might end up being. Some people seem to buy “starter homes” expecting that real estate values will rise to give them leverage towards the “dream home”. These days, that is less than a sure thing. I agree that many people seem to have unrealistic expectations as to what kind of home they can really afford, and extend themselves much further than would be advisable.
July 15, 2009 at 8:13 pm
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July 23, 2009 at 9:28 pm
[...] Should one buy a starter home and later trade up if necessary or go for a once-and-done home to live… Gail shares her thoughts on the issue. [...]
July 25, 2009 at 5:29 pm
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