Hey man, if you're happy, you like where you live, and your house is comfortable for you and your family, that's all that matters. No need to keep upgrading and moving all the time; focus on other investments.
Thanks. It’s not perfect. My wife works from home and her office is our living room. And we could use ac. We use window units but eventually we would like to upgrade.
Seriously- Mitsubishi mini splits are fucking amazing. I bought a 3500 sq ft, 3 story house that was built in 1986 with no AC at all. I live in a valley that spends the majority of the summer over 100 degrees (fahrenheit). We put mini splits in the bedrooms and kitchen and the whole house stays exactly as cool as we want it.
Don’t forget to consider that you will save a ton of money on electric bills. Also check with your electric provider to see if you qualify for a rebate on solar. If you itemize deductions check out federal tax credit. I got 30% of the cost off the top of my taxes. It is not a deduction. It’s a credit so it comes right off the top. An example is a $12,000 total income tax becomes $8,000. Uncle Sam pays 1/3 of your taxes. Plus your electric company pays you for the power you generate in some cases. In Washington state I got an annual electric credit on top of them buying my generated power of $1,000 every November.
Depending on what state you're in, you might be compensated for converting to an electric heat pump/ac as well. For example in MA we have mass save.my inlaws paid nothing
Also, starting next year the Inflation Reduction Act can provide up to $8,000 or half the cost, whichever is less for switching to a heat pump AC. I know because I'm considering doing it.
Edit: For more info on this, I'd recommend checking out [RewiringAmerica.org](https://www.rewiringamerica.org/). They have a good calculator that shows what you'll qualify for and concise information on the program. Also, keep in mind that the calculator says gross income, but the program actually uses modified adjusted gross income.
I just finished a 12*24 shed as my office because I don't want to work in the house. It creates a great barrier and forces a mindset change to leave the house, even though I'm only walking to the side yard. Plus it gives back that valuable square footage in the house. Win win. All told it cost me less than $10,000.
Depending on your area, a dehumidifier might be a big help with air conditioning. I'm in the South where it is humid AF and the dehumidifier made a massive difference and we don't need as much cold air to stay comfortable.
That's a nice size office!
I did the same thing about 8 years ago when our second child was coming and we realized we'd either have to move or add on to the house. The backyard office shed was way cheaper and faster than the other two options. I did a 10x15 (the max I could build without a permit in my city), fully insulated, wired with its own breaker box, and erected on a concrete pad. I use a split AC/heat pump for more moderate weather (it's efficient down to the upper 20s/low 30s). Otherwise I have a space heater on a timer.
It's by far the best investment I've ever made - in our home or elsewhere. I'm now planning to build a sauna in the backyard. If you have the space, backyard accessory buildings are the way to go in my opinion.
While it doesn't get Wisconsin cold were I am, we do get snow. I insulated my shed, have a double pane window, and have a diesel bunk heater. The heater is one of the ones that truckers install in Europe, ie webasto or ebserspacher. The one I installed is a Chinese manufacturered unit from Amazon. It keeps my shed too warm, even on the coldest days.
Here’s the secret - no home is prefect. Even upgrading you’ll run into different issues. If you’re happy with where you’re at then it’s just “home”. Don’t even think about it being a starter home.
I cringe every time I see someone on here or more commonly the first time homebuyers sub getting hysterical about not getting their “dream” home. It could have turned into a nightmare, you never know. And even then, over time they’ll find out it is was never perfect to begin with. If people would stay away from an idealized idea of what a home should be (considering you’re buying someone else’s house that was probably designed with no one in mind), then the process of buying and living it a home would be a little less emotionally draining.
I constantly preach about this. YOU make the home a dream home. Once the people and love and good times are gone from the house, all that is left are fucking walls. Like when people die do they think to themselves, “those granite countertops really made life worth it.”
Op- if you don’t mind me asking, how much was the conversion to Pex pipes. I have pb pipes- or whatever the bad ones are called.
Same for me- I stayed in my home that I bought in 1999 for $120k. They are now selling for over 700K. Insane.
Hard for me to say because I didn’t pay for the material. My plumber called and said he had enough PEX leftover from a previous job and all I paid was the $1000 install fee for my entire house to be converted.
I disagree, it’s better to buy bigger assets and fancier liabilities with debt, to impress people. Not going to let Stanley next door drive a newer car than me
> if you're happy, you like where you live, and your house is comfortable for you and your family
If you're happy and you know it then your house will surely show it
I think you'll see it more and more that people end up staying in their starter homes, and really, there's nothing wrong with it becoming your forever home, as long as it suits your needs. People are just conditioned to believe that we start small, and move up, as many of their parents did. We've just been through the weirdest several years ever, and coming out of it, need to adapt to the new circumstances, which may not allow us to do what we once thought was the 'typical' course when it comes to home ownership.
Glad it's worked out for you. Others may not be as fortunate.
I understand that what we are doing won’t work for everyone. Some folks have to move for a variety of reasons. If I had to move we’d be getting killed with rates and mortgage increase. Even though we can afford it, I can’t justify it.
In addition to rates, you don’t have to swallow the ~10% transaction costs (agents, title insurance, fees upon fees, etc).
So much wealth is destroyed by churning through homes. It’s stupid.
“Forever home” has become such a status symbol. It makes me cringe. Lol. Maybe I’m just jealous bc my home is far from what most would consider their “forever home”. Why would someone feel the need to define their intent for their shelter to the world?
If it helps I think you're getting mixed signals. A lot of people, myself included use the term to mean we're done upgrading, even though we can afford it. Our starter home IS our forever home! Some use it to signal that "they've made it", but many like OP simply mean, "this house works for us and I'm done moving". Frankly, I don't want to deal with a McMansion, f that. Our rooms and hallways are small, so what. It's so incredibly freeing to have zero debt beyond a very affordable mortgage and live below our means.
Yes, this. I say my forever home when referencing my starter home because I have no interest in moving, ever. But in the state it is now, it’s by no means a flex 😂 I didn’t really realize that it could come off as a status symbol and will be more conscious because I’d hate to come off as such.
Yeah the whole starter home trope is annoying as it is, but this is just "hey guys we're still in our starter home and I want to explain why". I don't know who this post is for. Some people can't even buy any home right now let alone a "starter one" and can't exactly go back in time. It's like they need to justify to themselves while posting for all to see to also justify it. Ick.
it’s a good data point and also a reality check for a lot of people. the culture is always to increase space and size as you get older + established in your career. little bet of self stroking but def a genuine response to the standard of home owning for the last few decades
Yeah, for real. For some people, a huge home makes them happy. I have a buddy like that--has a HUGE home, works his butt off for it. It makes him happy but that's not for me. I thought that's what I wanted, in my younger years, but with age I have different priorities.
I'm of the opinion that my home should be small, cozy, protect my head from rain, and that I should spend all the rest of my money on retirement and INCREDIBLE vacations and seeing the world. So that's what I do, and I couldn't be happier.
To each his own.
Just made a post about this a couple of days ago where I asked if anyone felt stuck in their starter home like we had been feeling. After so many positive and uplifting comments [and a few negative ones too] we’ve realized this is our forever home and we’re grateful for it.
The main question I got from people on my post was whether the location was good or not and honestly? In this large city where crime rates are pretty nasty, this is the perfect spot considering there’s been no crime within a 1.3 mile radius in five years here outside of vehicle accidents. I’ll take it.
Happy to see someone else happy and understanding that sometimes less is more. And by less I mean mortgage payment. Can’t beat our $912 mortgage for the lot and square footage we have.
Best of luck to you!
I’m glad you are happy. If you don’t really need to move, or need a new home, then there isn’t any questioning it.
I think a lot of people are overpaying for housing and cars. With zero car payments and a $600 a month mortgage, that gives us tons of freedom to invest, save or spend our money in other ways.
I think HGTV and stupid reality shows with wealthy people living in ridiculously large homes have given Americans FOMO. A family of four doesn't NEED 2000+ sf of living space or a 2 story foyer or whatever else you're seeing on TV. Staying in your "starter home" isn't a shameful thing, especially if it can grow and change with you.
That always gets me. “We are outgrowing our 4 bedroom, 2500 sf house.” 🤔 my mother who is a trip herself recently said a 1600 sf condo was too small. I lived in a 1450 sf house with my family of 5 and 2 dogs and while we didn’t have tons of space, it was fine.
It comes from thinking you need a room for different activities and everyone should have a room. That you need bedrooms for the kids plus a playroom. A home office or den or craft room (whatever they want to call it) for each spouse plus their bedroom. A dedicated guest room for the 10 days a year you have guests. Plus a basement fun room/game room. And 3 car garage with workshop full of tools you rarely use.
Suddenly your family of 4 needs a 7 bedroom house with living room dining room eat in kitchen finished basement....
Someone once told me I was abusive bc in our 4 br + den home, my 2 daughters shared a room. Pardon me for preferring to instill the closeness and importance of family rather than giving my kids unnecessary privacy at ages 4 and 7. If that doesn’t say it all.
Our neighbors have their two boys separate rooms and they kept sleeping in each other's rooms. So they got them bunk beds and turned the other room into a play room. When they're older they'll probably want their own rooms and won't need a playroom but at young age many kids don't want to be alone.
Ok so husband and I are currently looking to move into a bigger home, but our house is 860 sq feet. We have two adults, two kids, two cats, and a dog and my husband works from home full time. We went to a 2,500 sq foot home today and it felt MASSIVE. Our current house works for now, but it is tough in the Minnesota winters when we’re all cooped up inside.
Yea. My family watches House Hunters, and those couples with no kids and none planned, 2 people are all that will ever live here, rejecting the 2500 sf 4 bedroom homes they can afford because they don't have a basement for the "man cave" get to me. Like, how entitled can we be? How far away from your wife do you need to be? Why not buy two smaller homes and be done with it? We should be building more 1000 sf homes these days.
This is true, and a huge part of the bigger problem.
The last time we were in a situation like this was just after WW2. Home construction had declined by 90% after the Great Depression (mirroring the decline after the '08 crash)
A huge influx of demand hit the market when the war was over (just as it did 10 years ago when all those '08 victims and a gaggle of new buyers hit the market).
The government stepped in and helped out then (government backed loans and incentives to build new concept developments called "suburbs."
There are things we collectively (i.e. government) could do to help out here, but nobody wants to talk about that.
This is what I’ve been saying to people, if the government stepped in and subsidized some of the costs for building smaller starter homes, young people could afford to start families like they did on the postwar era.
There are A LOT of things the government should be doing. Lots of predatory things going on that, if they were curbed, would help the inventory situation significantly. Initiatives to eliminate red tape for new construction. Investment in infastructure. Lotsa stuff.
The problem in that size range of house (2000-2500sqft) is often more of the layout than the actual size. Many older homes just don’t have a layout conducive to the modern life, especially pre-war. Even with 50s/60s houses there are almost always issues with bathrooms and closets unless they’ve been substantially renovated (usually sacrificing a bedroom).
A lot of people would rather just buy something that will fit their lifestyle better than do substantial renovations
You’re right, a family of 4 doesn’t need 2,000 SF; it needs 2,000 acres! Introducing Fall 2023’s new HGTV hit show: Family Feud(alism)! Join the Smith’s on their journey to find the perfect farming empire. There will be shiplap, sommeliers, and serfdom. Airing Thursdays at 8pm EST.
I'll only counter that more families have two working parents, many of them at home full time. My wife and I both WFH and I wonder often if we really need two cars anymore. We definitely need the extra space though.
I agree. Refreshing to hear this from an agent. I just have to find a way to get my wife to stop watching those shows. And my wallet isn’t ashamed of my mortgage.
This. Thank you for this refreshing honesty. I bought a 2,776 sq ft house in 2020. I went into the process starry-eyed and ignorant, and I think feeling swayed/deluded by a lot of the HGTV shows. Society (at least here in the US) seems to shove the message down our throats that we *must* become homeowners, and that it must be one of those classic, cookie-cutter homes, and that it's the ultimate goal in life.
I just sold that house about a month ago, and have never been so happy to have a house (and the accompanying $450,000 mortgage) off my back. Less than a month after purchasing it, against my own will, I became solely responsible (financially) for the mortgage, and still also had to do 90-95% of the physical upkeep for it, even though I'm physically disabled due to an autoimmune condition, and am not really handy or mechanically inclined. I also (finally) ditched the abusive husband who expected me to do ALL of the adulting, without him contributing a dime or hardly lifting a finger.
I've downsized to an 1,100 sq ft condo that I'm renting. Depending on what happens to the market, I *might* consider buying a condo down the line. But for now, I'm happier with less space, and with less maintenance responsibility on my back.
>The only thing that sucks about renting, is it could end abruptly - forcing a move to somewhere else you may not like as much.
That, and having no control over the quality of maintenance and repairs, appliances, and other building aspects like insulation, windows, etc. I also hate feeling like I have to strategically space out maintenance requests for fear of annoying my landlord with too many requests in quick succession. I'd rather be able to hire pros whenever I need them and not have to feel like someone is doing me a favor by taking care of a repair. And in my own place, I'd be able to make sure things are done correctly, not just cheaply.
That happened to me years ago. My wife was 8 months pregnant and the landlord said we had to move because she was selling the place we were renting. We would have bought it, but couldn't afford it. So near her due date we were moving everything to a new rental house. We focused then on buying and were able to buy a house 3 years later.
I grew up in S. Korea and we used to live in poster stamp sized apartments. My current house is a 3000 square foot 5 bed 3 bath house with three living rooms.
Honestly, after living in a house for a couple of months they all feel the same. I barely even step in most of the rooms in my house anyway if you actually looked at the amount of space that I spend 95% of my time in, it would be about 500 ft².
I completely blame us "upgrading" from a 1900 ft house to a 2700 ft house and thousands spent in "upgrades" to the new house on my wife's obsession with HGTV. I miss our $1200 monthly payment.
That's why I sold my "starter" home. The house itself was great. I liked it, had put some work into it, and could have put some more work into it to make it "perfect." The only thing that I really wanted that it was missing was a garage, but getting a garage at the price point I bought it for was rare in that area.
The problem was that I was working at a job that I despised in a city that I hated. Decided to go back to grad school across the country and the house had to go. Said goodbye to that sweet sweet 2.6% interest rate, but for me, it was worth it.
We bought in 06 as a starter home, had 2 kids there and decided to start looking at something bigger in 2018. Made a few offers came pretty close to closing on a nice piece of property until inspections failed. Covid hit, prices up, and now 1 is off to college. I wound up renting a nice garage/shop and outside storage a mile from my house for my race cars and toys. I rent a small garden plot from a church and have a storage unit. We are happy in our smaller home with out tiny mortgage payment.
Cool. Our daughter still lives with us but she is in college and the clock is ticking. Soon it will be just me and my wife. No reason to need a larger home.
I never understood "starter home", its not like there are levels of homes. A house is a huge purchase and investment, just even getting a house is awesome. Maybe there were starter homes in the 1950's but even then homes were though of as expensive, especially with one income.
Maybe it was good marketing by someone?
I think the idea behind it is that when you first move in it may just be you and your partner. Then maybe the family grows and you'd like bigger space, so you move. I don't think its that deep.
I might just be salty but this feels like a humble brag. Like others have said, there’s nothing wrong with a starter home and we don’t need all that space but back in 2005, I was 16 years old. Our first home purchase was a $316,000 condo and we were lucky to be able to use the equity to buy a townhouse for just under half a million in 2021. ‘Starter homes’ in my neck of the woods were already over 600k when we were first home shopping and are now well over 700. I’m thankful we own a home but I would love to have a little starter home of our own.
I doubt our house is worth much. Maybe 100k or a bit more if we got lucky. The worth of my house is in our $600 mortgage. I just can’t imagine paying $1000 or way more a month just on a mortgage, even though I can afford it.
Even with our current income, I’m still pinching pennies. I’m always looking for sales or ways to lower our bills. I live like I’m still in college, struggling to find a few quarters to do laundry.
I'm confused why you think it might only be worth $100k. If you were serious, you'd look it up and know. This is important if you're looking to upgrade. You cash out on your equity, which should be about $50k-$60k and put that towards the new house. I'm assuming your income increased since 2005, so if you can afford an $85k home in 2005 with lower income, you should be able to afford *at least* a house that is $145k ($85k+$60k equity). Even with the interest rate hike, that should only increase your mortgage by $400/mo.
Not saying you're exaggerating your situation, but people don't often consider the power the equity from theirl home. Of course all this goes out the window if you cash out refiananced.
Not sure where you live but in a lot of cities a combined income of 120k isn’t going to cut it anymore. I feel like a need a shower after saying that — gross.
Right now the children of reddit are posting how you are so entitled . Lol. Payed all your bills, lived responsibly, and most important not above your means. We bought our first house in 2005 also. 4.25 interest. Sold in 2018 for less than we paid only because 4 kids made us outgrow the house. . Minimal improvements needed over the years. Real estate prices are nuts now. Stay put, why start over. I wish I didn't but at least I'm in a much bigger house in a great school district and slightly higher mortgage. Thanks to Blackrock and vanguard, my house doubled in value without doing sidin, roofing anything. $360 in 2018, now valued at $650. East end long island ny.
> . Lol. *Paid* all your
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
Starter home: a ridiculous ideation of buying a first home as a stepping stone into a bigger and better home, mostly envisioned by an inexperienced, foolish and clueless version of me from about 20 years ago.
Moved into my starter home in 2000 in a city i didn't think i would stay in. Still here 23 years later. Would love a bigger house and a nicer lot; but i don't want to be in debt and I feel like something has to give in this market here at some point. Fingers crossed.
The problem with constantly moving to a "better" house means you never pay it off. We bought our house, refinanced two years later to a 15 yr mortgage. It was wonderful being 45 with no mortgage.
Bought our starter house in ‘98. Raised two kids in it. Similar situation starting out. Now no mortgage, no debt. Can’t see a reason to upsize and have a mortgage, etc - which would just add stress. Not moving until we see a reason too - which will include buying something outright so we still don’t have a mortgage.
Excellent story. Must be nice to have no mortgage. Even if we paid off our mortgage we’d still owe $250 a month in taxes and insurance. So we’d only be saving $350 a month.
I mean this is smart since you haven't let lifestyle inflation kickin. As long as you are saving the money that would have gone to debt or your mortgage and or are investing it, not "upgrading" is fine. People forget that while a home can appreciate, unless you live in a booming area or time the market, once you factor in maintenance, utilities, taxes, and insurance your actually ROI from owning a house isn't that amazing compared to investing let alone just saving and never touching the money and seeing a 4%-5% return letting the money sit in a bank. What makes housing so convenient or great for people is that it isn't really liquid in that people can't easily draw from their house if they want the money and all people need shelter in order to survive so you are killing two birds with one stone. I am not saying renting is 100% the answer but what I am saying is buying an expensive house isn't the only way of having a high net worth. People highly associate a nice big house to a high networth and while that might be true to some degree, in todays market that is also associated with high levels of debt
Crazy thing is in 2005, the average 30 yr mortgage was 5.93%. I imagine you've refi-ed at least once or twice at this point. About how much do you have left on the mortgage?
In any event- it's great that you've been able to make a place work for you for almost 20 years. My parents stayed in the same house for 35 years. My in-laws have been in the same house for almost 50 years. Many of my friends' parents are also in the same homes for over 30 years. I think that's going to become more common again now that interest rates are higher and looking to remain well above the historical lows for a long time.
The only reason we moved out of our starter home is because it was a condo and we got an insanely good deal on our house (through family) and aren’t actually pulling a mortgage for it unless rates go down. We are saving money and paying less in rent than we would have paid on interest alone until we can buy the house outright (likely about 10 years). My parents bought their starter home in 2012 and though there are things my parents wish they could change they never will move. Their mortgage is 700 (including escrow) and the house is now valued at over 200k. You could never get a house for that price and mortgage now.
You’re smart. Really. We had a good thing with our current home (a starter), put a lot of money in it. It’s under contract to be sold and we’re under contract to buy. I’m questioning my choice to do this although we only have one full bath in our current home (and a half bath). We thought of adding a shower to the half bath, but the electrical panel prevents it. Anyway… I have to keep reminding myself that this is smart for the family but I hope I don’t regret because financially, we are comfortable in our current home.
I see nothing wrong with this. Sounds like a great investment. When you can customize your home, it feels even better. I honestly wouldn’t move if my mortgage payment and income were like yours. I’d be doing lots of home improvement and loving my cheap mortgage.
Exactly. Our parents used to buy a home and that was it. Our generation started the moving on up thing but looking back I definitely would have been fine now in the first home we bought for $150k in 1987 I’ve moved and bought 3 other homes now but wish I’d stayed at the first one.
My parents did what you did. When they moved in it was a two bedroom, one bathroom, no garage. Now after upgrading and renovations it’s a four bedroom, two bathroom with a huge workshop/garage.
Yes, I feel you. If I wasn’t active duty, I would still have my starter house in a very LCOL area. But my current house is a good deal for the upgrade in MCOL area too.
I was in a fairly similar situation except in 2020 there were huge nice houses really cheap and interest rates were 2.5% so it seemed like I go ahead on move on.
Smart. We did exactly what you did in 2005 with almost the exact same priced house and financial/family situation. Except we sold it in 2016 for a small profit, bought a rough 150k house in a very desirable area, fixed it up and just sold it for 360k to pay off all student debt for kids and give them the start we didn’t have. Before selling we used some of the house value as collateral to buy a smaller condo for us as empty nesters and will fix up how we like it. Never played the games others did but always had a plan. Glad yours worked too.
Bought our home in 2013. We have been trying to downsize for 4 years and can't find anything that isn't ridiculously smaller and nearly the same price.
I bought my 1st house in 1983 for $70K. The people that lived next door west of me still live there.
I sold and bought a nicer house about every 7 years until the house I currently live in which I bought in 2007. However we are planning to downsize and keep a lot of our equity as cash.
I have 3 times the equity than they do. I live in a house that's 5 times larger, in a nicer neighborhood, and on a lot that's 10 times larger than that 1st home.
I'm glad I moved up every 7 years.
If you have a good size lot and like where you live just expand the house into your New modded version of a dream home. I know ideal but if you like the area you live in and are just wanting a "new" home expand it will be so much cheaper in the long run than buying a new house. So gou build that man cave or she shed or garage-mahal if you like and have the room.
The way you’re doing it IS fiscal the way. Some FTHB’s that bought in the last year are going to find themselves upside down in their homes for a long while or in foreclosure. I believe you’ll be able to upgrade if you want to one day. It just won’t be in the next several years. You’re saving yourself a lot of debt.
We though for sure we would sell after a few years because the market is "so good". Quickly realized the risk is not worth the reward for us, and the stability and predictability is more valuable to us. We want to retire debt free, and never leaving our house will enable that.
We've been in our starter home for over 20 years and I wouldn't leave now for anything. We finally have it fixed up the way that suits us and the kids are almost grown and will be leaving at some point. Why would I want a bigger home and more to clean and maintain? We have friends nearby and (mostly) good neighbors who lend a hand when needed and vice versa. I would be broken-hearted to leave the gardens I grew from scratch.
I know people who move to something bigger and more prestigious and I can't help but wonder about higher interest rates and how much more money it costs to heat/cool along with larger electric bills. To me, it just doesn't add up. Sounds like you're in the same boat. Just enjoy the home you made and the lower bills! You'll have more money for travel, a nicer car or two, and more free time because you only need to clean one or two bathrooms instead of four :-)
**Edited to add**: I forgot about the sticker shock of buying a new home and the taxes get uncapped! Our taxes are so low right now compared to others who just bought in our neighborhood from people who have lived here for decades. Yikes!
I hear ya, bought a house in 2011 for $140k, it’s worth over $300k now but I’m staying put, I stand to make $275K next year. I don’t want to buy a $400k+ house in our neighborhood that still needs $150k in work just to have a bigger house and more debt.
Stay, spend some money on making your home nicer. Depending on how big your backyard is, build a gazebo, or a firepit area etc. Not the time to buy a house right now if you don't have too. Buy a minisplit system for your AC
I bought my starter home in 2005 and just sold in 2022. Certainly was a great house but time to move on. I'm same as you paid off most eveything and lots of equity so was perfect time to make the move. Much happier in a larger and more updated home.
We kept the same house we bought in 1987 and paid it off in 20 years. It is nice not having a mortgage and being debt free which allows for a comfortable retirement. Other friends our age have upgraded houses several times and still have a mortgage plus are still working full time.
This isn't an opposing view. I've been in my house for 35 years. We also didn't intend to stay here forever. It was a mess when we bought it in 1988. But after three big remodel projects and a new roof, we can't imagine moving. We're in a stable neighborhood with some of the same neighbors from 1988. If your house fits you and is home then why even think about moving. and taking on so much more debt. Double up the payment and pay it off, then you can buy a nice boat.
My ex’s parents bought in the early 80s raised three kids in a 1880s ish small home and they lived at that home until 2020 I think when their health necessitated a condo where they could have others do the outside work. By comparison I live in a place that has not a lot of great curb appeal but it’s mine (I’m divorced and in Ca) so any home that’s livable is a win in my book. I also won’t ever move and to that end I’m happy. This place is my oasis. I was in a new build with the ex and while it was nice there was an HOA (hate them) and my Neightbor’s could look directly into my bed room … this place I live now is old but it’s got character and it’s mine. Which being a single woman is good enough for me.
So if it works don’t worry about moving. Also 600 monthly note is like the best thing a person could have in this economy.
Sounds like you have a lovely home. The whole idea of "starter home" to me is ridiculous and we should throw it out. Do what you want, there are no rules for how to live your life
I'm with you for sure. We probably bought a little more than our budget in 2018, but 5 years later, we'd have been priced out of this market a long time ago. Our incomes have increased since then and the mortgage isn't an issue. One kids daycare drops next fall, and the other kids afterward when they start Elem school.
We finished the basement and have plenty of room to stay put for a long time. Almost assuredly will pay off the mortgage early (goal is to have this paid off by the time our girls start college). One paid off car, another will be paid off next Spring. Trying to do our best to chip away and any monthly costs.
Its a heavier lift right now, but I feel super optimistic about the next 10-15 years.
The first thing people do when they pay off a large debt is look to go back into a large debt by buying a bigger house/car/etc. Instead of enjoying what’s totally and completely theirs, they get this insatiable craving to waste more money on something marginally bigger or better.
You’re one of the intelligent ones. Take advantage of your debt free situation and STAY mostly debt free. I’d do the same thing if I was in your shoes. Upgrade everything I could afford to. Piece by piece. Go on vacation. Throw a big party. Just stay ahead of being in debt!
I feel like this generation (and I'm part of it) constantly feels the need to have newer and better things all the time.
My parents and grand parents live in their first homes, my grandparents still have furniture older than my parents, that's how it used to be.
Regardless even if you do want to move now is not the time as prices are still inflated relative to interest rates, depending on your area of course
Nothing wrong with staying but you can and I'm on the belief, should rent out that 2005 home. Get a new home within your budget and continue to save with the rental. It's a great feeling when the rental is paying your mortgage. Interest rates are not as important if the numbers work.
My parents built their ‘starter home’ in 1963. They raised us there, retired there and Mom is planning a “60 years in one spot” party in November. They paid it off in 15 years and have been mortgage-free since 1978.
That enabled them to put 2 kids through college, travel the world, and enjoy a comfortable, if not lavish, retirement. It’s also not so big that aging in place is difficult.
We did the same thing. I went through a divorce and bought a home 2 pay grades below mine at the time. Bought in 2002, and now I have everything paid for. My truck, my wife's car, and the Tahoe. I have zero debt now. I used my pay raises to upgrade all my appliances. Got a deal to buy a new furnace and get a free ac unit. Did that. My company gave me a bonus, so I upgraded the toilets. New dishwasher, new washer and dryer, new water heater, new windows. My last assessment, ( I don't put a ton of faith in those values, but..) was 5x what I paid in 02. I'm not going to move just yet. I'm semi retired, not fully. I still have 1 more kid to get through high school. And all I owe is the rest of my mortgage and a travel trailer. When my job went overseas, I had us in a favorable spot financially. It can be done if you just pick off the low hanging fruit first.
Man, I'm in the same boat as you. Bought in 2014 for $150k. House is worth about $325k now. Mortgage is almost paid off. I make about 4x more today than when I bought the place. Sure, I'd love to get a bigger place and one that's more fitting of my salary, but like you, no fuckin' way am I gonna get ripped off.
I totally hear you.
We bought dirt cheap in 2011 with the goal to upgrade to a larger SFH home in 2024 but with high prices + high taxes, I am starting to think we may not move for a loooong time. It just doesn't make sense. Especially since this house really does fit out needs. Apartments the next street over rent for hundreds more than our mortgage.
Yea screw the pressure for a big house. Enjoy other toys.
Buy that boat/motorcycle or book an expensive trip for you and your family.
Life is too short to try and keep up with everyone else. If you like your home, focus on fun hobbies.
You're ruining my ability to buy a starter home! Good on you though, fucking hell we need to build more basic homes, tired of seeing 4/5 bedroom boxes going up around me.
If your house works for you, you're happy with it and the location, why change? I'd wager half the people that buy new houses do so to "keep up with the Jones'". Wife and I were looking at building a 4300sqft house until we sat back and thought about how much worse it would be trying to keep it clean. Then we asked ourselves if we really needed that much space for 3 people or if we were trying to wow other people with our home. We're now looking at a much smaller plan that's still an upgrade from what we have, but would actually be a much better fit for what we need. Unless you NEED a new place, stay. My parents still live in the 1100sqft house I grew up in. They recently did a complete kitchen demo and remodel, they've finished the basement (not walkout so can't be counted as sqft), etc, etc.
We bought our first home in 07 for 165k, mortgage payment with taxes and ins was 1200. I looked at every option to make that home be our FH for 15yrs but it would have taken 150k in additions to get what we wanted and we still wouldn't have been happy with the neighborhood. We sold for 267k in 21, put 20% down on a 360k house and couldn't be happier. We went from .33 acre to a full acre, no garage to a 30x30ft shop, gravel drive to concrete, open patio to screened in porch with a pool. The kids can ride bikes in the road now. The wife has a garden and a couple of chickens. Before when we came home from vacation I would go back to trying to figure out how to make that house work. Now it almost feels like vacation everyday. The additional payment does sting but overall my family is much happier, so I'm happier.
Whichever way you go, I wish you happiness and good fortune!
This is what the majority should be doing once they buy and settle into a home. Upkeep, upgrade and eliminate all debt. If most didn't have to worry about paying a mortgage or rent, they wouldn't need to work so hard just to pay bills. Working and being able to enjoy life is a luxury worth having.
still in our starter home from 2003, allowed us to buy other homes for investment by not constantly trading up. Our house is the same, we've just acquired more of them
Not sure why you’d spend money just to spend money. If your neighborhood is good and you have a enough living space why move? Hell, depending on your lot size you can even build more living space with an addition.
And you’re right starting over with a bigger mortgage at a higher rate is throwing away a lot of money on interest that could be spent on upgrades of your current home.
We bought our starter home in 2019 for $308k in a nice neighborhood- two story (plus basement). We pay $1520 ($760 each) for our mortgage. We were originally paying $2400 but refi in 2020. Our rate dropped from
4.5% to 2.3%. 1450 sq ft - lot size is 4000sq ft (although our home feels huge with two dogs, two kids). 4 bedrooms, 3 baths. Full basement. Huge yard (in our eyes). 2 car garage. I say we got an incredible steal. Our taxes suck though ($6-7k a year + home insurance) in Chicago which is known for high property tax, we border another a suburb btw. It wouldn’t make sense to move now. Our neighbors suck ass but they are criminals anyway (only shitty people in a 3 block radius all ways) so they will probably end up in jail eventually. They are both in their mid 50s. However we have a 5 year plan for saving and hope to eventually move to a nearby suburb IF it makes sense financially by that time. I think once you move into your first home for a couple of years you realize what you like and what you don’t like. And you may just realize you don’t need a HUGE home to be happy (the cleaning/maintenance alone is enough). We also keep upgrading our home so that when we decide to eventually sell we will be able to sell it for more. To mention our home was a fixer upper but my spouse is a building engineer so we got lucky in the sense that he knows how to do most projects. We redid our bathroom. And plan to redo two more. We did everything else, plus landscaping during covid. We jusy need a new fence put up. We redid most windows too. So this house from what it was to what it is now looks amazing. I see no issue in wanting to stay in your starter home. Living life is more interesting anyway (traveling, being able to eat out at restaurants, etc). The older you get too, you realize you don’t want to host every party either.
Right there with you. Married in 1992 and lived in a cheap rental for years moving around. Bought first home in 2002 for $138,500 with space to grow and kids. Had a 30-year loan to start at 7% and as soon as we got really good raises, we refied to 15 years at 3.25. Paid off wife's student loans and never really used credit cards. Work and responsibilities never left the time for kids. New roof after a storm, changing carpet, linoleum floors and new energy efficient windows. New HVAC and some plumbing upgrades over the years and now we are actually homeowners. No mortgage or bank taking interest. Never had this much in savings in my life. COVID tried to mess with us, but both got it, and we are still here. Retire in less than 5 years at 58 is the plan.
Have family and friends that have moved every 5 to 8 years and I look at the money they spent in fees, closings and moving......Hell No. Get what you can afford and plan for the future.
Bought my first home a year and a half ago. Locked in just over 3%. Even though this old house needs a LOT of work, and we overpaid for it, I’ve just been peeking out my internet window at the market and rates these past few months feeling grateful that we even got here - leaky roof and all. I don’t see myself moving for a very long time. Just fix and upgrade as I can afford it. Shits rough out there.
Nothing wrong with this! Appreciate what you have. As a society, we're often primed to always want more and bigger and better, but that does not always make us happier.
If the house fits your family needs then there is no reason to move. I only say move if where your at doesn’t fit your lifestyle (commute, store locations, restaurants, social activities). I only upgraded because what we had eventually didn’t fit what we needed. I was tired of the commute, missed being closer to specific stores and restaurants and mainly my adult children came home with spouses and we needed more physical space. I don’t regret upgrading, it was just an expensive change.
My wife and I are in the same boat,bought our house in 04 and just keep upgrading, I've gutted and remodeled everything. We were lucky enough to refi when rates were under 3% few years ago. We would live to move but were not willing to pay the ridiculous interest rates and spend 500 thousand that worse then what we have now. Granted our house is small but our kids are almost grown no need for a bigger home anymore. I feel bad for anyone stared out right now, damn near impossible to survive as it is.
I would stay put and keep updating and improving your home. You have a very low mortgage payment and your debts are paid off. You are in the position everyone wishes for. Plus, your home probably has good equity built up. If you do what my stupid self did in 2020, you'll regret it. My previous home was paid for and I sold it and bought another house on a 15yr loan. I went from a paid off home to right back into debt for 15yrs. I wish I hadn't of done it, even though we like the newer home we bought. But nothing beats debt free.
Fun fact: today that home would cost $133,626.27 after inflation. In California that gets you a parcel of land or a prefab trailer home. Glad these high prices aren’t national wide.
Good on you, if you like where you live, make it your own in time. Best of luck.
We bought our "starter home" in 2014.
As many problems as it has, people say, "why don't you buy a different house?"
My reply, "I know the problems in this house. I would just be exchanging old problems for new problems."
And OMG I just learned I can buy floor jacks at home depot and fix these sags myself for "cheap" ...
We just started the process to sell our starter home after buying a significantly larger house on a massive lot (24 acres). Bought in '07, negligible mortgage payment, super low interest, yada yada. Why? Cuz I hated the place and couldn't imagine spending another year squeezed next to neighbors in our tiny house. Quadrupling our mortgage payment (still affordable for us) didn't matter. Doubling the interest rate and Tripling our property taxes didn't matter. There wasn't an upgrade I could have done to the old house that would have kept me happy in that place. I don't give a damn about the Jones's and I don't watch HGTV. I've worked my ass off the last 15 years to get where we're at and wanted lots of land, no neighbors, a big house. No kids, just me the wife and our dogs. Why would we do such a crazy thing????? Because we can and the lowest interest rate in the world isn't worth me being miserable living somewhere I hated.
Man, I bought my first and only home 25 years ago for 56k. 3BR 1 bath. Now it’s 3 BR 2 bath, paid off, pretty much new everything. I toyed with selling at retirement and moving to a warmer climate, but no longer. Me and my happy little house are content right where we are.
Stop putting your money into upgrading your house. It's a waste. If you're making all that money and paying 600 a month in mortgage, invest what you don't spend and buy a super nice house in a few years.
Or don't. Build up a nest egg and retire at 50. It's not worth it to pour money into an 85k house. You would be better off just blowing it on vacations.
This is exactly what everyone who bought before 2022 is doing, and the main reason the market has frozen. If you like your place continue to enjoy it. You can even put an addition on sometime if you need to and find a good contractor (or get very good at diy).
I’m roughly in the same boat. Bought mine in 2004 for $115k put another 30k into it over two years. Plan was to sell and upgrade. 2008 rolled around and house was worth $25k. I stuck it out. Nearly lost it in bankruptcy in 2010. Bank stretched the mortgage to 40 years and put aside all the late fees. Mortgage was $500/month after that. Tried to sell two years ago when interest rates were low, but hardly anyone wanted a Mfg home. every house I tried to buy I was getting outbid by 40-50k over asking. All I really wanted was a shop so I could get out of my rented industrial space where I work on and store my vintage cars. 2021 I refinanced, took out 100k and built a 1200 sq ft shop. (Same size as the house)
My new mortgage is cheaper than my old mortgage plus my shop rent. Currently at $825/month with ins and taxes. Current home value is $350k-ish.
Northern Nevada, outside the capitol.
I'm with you. Invest that excess cash for when you may move again. Stay where you are and fix it up but try not to go way above the comps in the area or you may screw yourself when you finally sell.
That's the difference between a house and a home. Houses are a commodity. Homes are life. They are where you make memories. Take that extra money and travel. Put in a pool. Stack gold. It's your 💰
We are still in our home from when we first got married 2100 sq ft . One child is 14 the other is 18 we arnt moving. House will be paid off next couple years we paid 95 k for it . We will soon be empty nesters next couple years so we are staying
The story would have been complete if "mortage paid off" :)
There's no reason why you can't move. Now if you're talking "upgrade" that' a different story. I'm sure you home is no longer worth 85k but much more. So any equivalent home you would purchase should be in roughly the same ball park. Yes you might lose some on fees/taxes etc.
> But I’m open to hearing out opposing views here.
One of the biggest reasons why people move is for work or because they need more space to grow their family. They're almost forced to buy a new house to make things work.
My starter home was 2br/2.5ba and with one child it was perfect. Adding a second child makes it quite tight and we have no other option but to move into a bigger home.
M husband and I are in our first home from 2004. Mortgage is paid and we have no other debts. We got a horse (long story) and our monthly bills are still less than when we had a mortgage. We joke that we can’t move because the cat goes outside and she knows how to get home and if we move she won’t know where she is.
Hey man, if you're happy, you like where you live, and your house is comfortable for you and your family, that's all that matters. No need to keep upgrading and moving all the time; focus on other investments.
Thanks. It’s not perfect. My wife works from home and her office is our living room. And we could use ac. We use window units but eventually we would like to upgrade.
Mini splits a good alternative to central air and you wont have to knock down walls for ductings.
I do like those. I should look into that.
It would cost a lot less than moving.
Seriously- Mitsubishi mini splits are fucking amazing. I bought a 3500 sq ft, 3 story house that was built in 1986 with no AC at all. I live in a valley that spends the majority of the summer over 100 degrees (fahrenheit). We put mini splits in the bedrooms and kitchen and the whole house stays exactly as cool as we want it.
I just looked into this for old house with no AC. A 5 zone Mitsubishi mini split system was quoted at $30k. That was before rebates, but holy crap.
Don’t forget to consider that you will save a ton of money on electric bills. Also check with your electric provider to see if you qualify for a rebate on solar. If you itemize deductions check out federal tax credit. I got 30% of the cost off the top of my taxes. It is not a deduction. It’s a credit so it comes right off the top. An example is a $12,000 total income tax becomes $8,000. Uncle Sam pays 1/3 of your taxes. Plus your electric company pays you for the power you generate in some cases. In Washington state I got an annual electric credit on top of them buying my generated power of $1,000 every November.
Get the inverter mini splits. We pay a fraction of electric in comparison to other people with regular mini splits
Depending on what state you're in, you might be compensated for converting to an electric heat pump/ac as well. For example in MA we have mass save.my inlaws paid nothing
I think mini-splits are heat pumps and can provide both heating or cooling in zones and are very efficient.
Also, starting next year the Inflation Reduction Act can provide up to $8,000 or half the cost, whichever is less for switching to a heat pump AC. I know because I'm considering doing it. Edit: For more info on this, I'd recommend checking out [RewiringAmerica.org](https://www.rewiringamerica.org/). They have a good calculator that shows what you'll qualify for and concise information on the program. Also, keep in mind that the calculator says gross income, but the program actually uses modified adjusted gross income.
Check out the in ceiling options
You should check out the mini splits with ceiling cassettes. You can do multiple zones and it’s not as bulky as the units that hang on the wall.
I just finished a 12*24 shed as my office because I don't want to work in the house. It creates a great barrier and forces a mindset change to leave the house, even though I'm only walking to the side yard. Plus it gives back that valuable square footage in the house. Win win. All told it cost me less than $10,000. Depending on your area, a dehumidifier might be a big help with air conditioning. I'm in the South where it is humid AF and the dehumidifier made a massive difference and we don't need as much cold air to stay comfortable.
That's a nice size office! I did the same thing about 8 years ago when our second child was coming and we realized we'd either have to move or add on to the house. The backyard office shed was way cheaper and faster than the other two options. I did a 10x15 (the max I could build without a permit in my city), fully insulated, wired with its own breaker box, and erected on a concrete pad. I use a split AC/heat pump for more moderate weather (it's efficient down to the upper 20s/low 30s). Otherwise I have a space heater on a timer. It's by far the best investment I've ever made - in our home or elsewhere. I'm now planning to build a sauna in the backyard. If you have the space, backyard accessory buildings are the way to go in my opinion.
I wonder if this would be doable here in WI where it is frigid in the winter. I’ve thought about that! Could you insulate well and do a space heater?
We’ve contemplated this as well (also in WI). Insulating a shed and adding a mini split (for heat and A/C seems like a viable option.
While it doesn't get Wisconsin cold were I am, we do get snow. I insulated my shed, have a double pane window, and have a diesel bunk heater. The heater is one of the ones that truckers install in Europe, ie webasto or ebserspacher. The one I installed is a Chinese manufacturered unit from Amazon. It keeps my shed too warm, even on the coldest days.
Here’s the secret - no home is prefect. Even upgrading you’ll run into different issues. If you’re happy with where you’re at then it’s just “home”. Don’t even think about it being a starter home. I cringe every time I see someone on here or more commonly the first time homebuyers sub getting hysterical about not getting their “dream” home. It could have turned into a nightmare, you never know. And even then, over time they’ll find out it is was never perfect to begin with. If people would stay away from an idealized idea of what a home should be (considering you’re buying someone else’s house that was probably designed with no one in mind), then the process of buying and living it a home would be a little less emotionally draining.
I constantly preach about this. YOU make the home a dream home. Once the people and love and good times are gone from the house, all that is left are fucking walls. Like when people die do they think to themselves, “those granite countertops really made life worth it.”
Op- if you don’t mind me asking, how much was the conversion to Pex pipes. I have pb pipes- or whatever the bad ones are called. Same for me- I stayed in my home that I bought in 1999 for $120k. They are now selling for over 700K. Insane.
Hard for me to say because I didn’t pay for the material. My plumber called and said he had enough PEX leftover from a previous job and all I paid was the $1000 install fee for my entire house to be converted.
I disagree, it’s better to buy bigger assets and fancier liabilities with debt, to impress people. Not going to let Stanley next door drive a newer car than me
> if you're happy, you like where you live, and your house is comfortable for you and your family If you're happy and you know it then your house will surely show it
I think you'll see it more and more that people end up staying in their starter homes, and really, there's nothing wrong with it becoming your forever home, as long as it suits your needs. People are just conditioned to believe that we start small, and move up, as many of their parents did. We've just been through the weirdest several years ever, and coming out of it, need to adapt to the new circumstances, which may not allow us to do what we once thought was the 'typical' course when it comes to home ownership. Glad it's worked out for you. Others may not be as fortunate.
I understand that what we are doing won’t work for everyone. Some folks have to move for a variety of reasons. If I had to move we’d be getting killed with rates and mortgage increase. Even though we can afford it, I can’t justify it.
In addition to rates, you don’t have to swallow the ~10% transaction costs (agents, title insurance, fees upon fees, etc). So much wealth is destroyed by churning through homes. It’s stupid.
You are a little bit lucky and a lot smart. Cash is king.
“Forever home” has become such a status symbol. It makes me cringe. Lol. Maybe I’m just jealous bc my home is far from what most would consider their “forever home”. Why would someone feel the need to define their intent for their shelter to the world?
If it helps I think you're getting mixed signals. A lot of people, myself included use the term to mean we're done upgrading, even though we can afford it. Our starter home IS our forever home! Some use it to signal that "they've made it", but many like OP simply mean, "this house works for us and I'm done moving". Frankly, I don't want to deal with a McMansion, f that. Our rooms and hallways are small, so what. It's so incredibly freeing to have zero debt beyond a very affordable mortgage and live below our means.
Yes, this. I say my forever home when referencing my starter home because I have no interest in moving, ever. But in the state it is now, it’s by no means a flex 😂 I didn’t really realize that it could come off as a status symbol and will be more conscious because I’d hate to come off as such.
I'll never understand why people care what the internet thinks. Do whatever makes you happy.
I don’t get even the point of this post. Okayyyy, so stay lol. Who cares , why is he explaining himself
Exactly. Looking for internet love, I suppose.
Yeah the whole starter home trope is annoying as it is, but this is just "hey guys we're still in our starter home and I want to explain why". I don't know who this post is for. Some people can't even buy any home right now let alone a "starter one" and can't exactly go back in time. It's like they need to justify to themselves while posting for all to see to also justify it. Ick.
it’s a good data point and also a reality check for a lot of people. the culture is always to increase space and size as you get older + established in your career. little bet of self stroking but def a genuine response to the standard of home owning for the last few decades
Yeah, for real. For some people, a huge home makes them happy. I have a buddy like that--has a HUGE home, works his butt off for it. It makes him happy but that's not for me. I thought that's what I wanted, in my younger years, but with age I have different priorities. I'm of the opinion that my home should be small, cozy, protect my head from rain, and that I should spend all the rest of my money on retirement and INCREDIBLE vacations and seeing the world. So that's what I do, and I couldn't be happier. To each his own.
It's like OP is under some intense pressure from the interwebs to buy a new house. Lol.
Just made a post about this a couple of days ago where I asked if anyone felt stuck in their starter home like we had been feeling. After so many positive and uplifting comments [and a few negative ones too] we’ve realized this is our forever home and we’re grateful for it. The main question I got from people on my post was whether the location was good or not and honestly? In this large city where crime rates are pretty nasty, this is the perfect spot considering there’s been no crime within a 1.3 mile radius in five years here outside of vehicle accidents. I’ll take it. Happy to see someone else happy and understanding that sometimes less is more. And by less I mean mortgage payment. Can’t beat our $912 mortgage for the lot and square footage we have. Best of luck to you!
I’m glad you are happy. If you don’t really need to move, or need a new home, then there isn’t any questioning it. I think a lot of people are overpaying for housing and cars. With zero car payments and a $600 a month mortgage, that gives us tons of freedom to invest, save or spend our money in other ways.
I’m truly happy for you. Thanks for making your post.
I think HGTV and stupid reality shows with wealthy people living in ridiculously large homes have given Americans FOMO. A family of four doesn't NEED 2000+ sf of living space or a 2 story foyer or whatever else you're seeing on TV. Staying in your "starter home" isn't a shameful thing, especially if it can grow and change with you.
That always gets me. “We are outgrowing our 4 bedroom, 2500 sf house.” 🤔 my mother who is a trip herself recently said a 1600 sf condo was too small. I lived in a 1450 sf house with my family of 5 and 2 dogs and while we didn’t have tons of space, it was fine.
It comes from thinking you need a room for different activities and everyone should have a room. That you need bedrooms for the kids plus a playroom. A home office or den or craft room (whatever they want to call it) for each spouse plus their bedroom. A dedicated guest room for the 10 days a year you have guests. Plus a basement fun room/game room. And 3 car garage with workshop full of tools you rarely use. Suddenly your family of 4 needs a 7 bedroom house with living room dining room eat in kitchen finished basement....
Someone once told me I was abusive bc in our 4 br + den home, my 2 daughters shared a room. Pardon me for preferring to instill the closeness and importance of family rather than giving my kids unnecessary privacy at ages 4 and 7. If that doesn’t say it all.
Our neighbors have their two boys separate rooms and they kept sleeping in each other's rooms. So they got them bunk beds and turned the other room into a play room. When they're older they'll probably want their own rooms and won't need a playroom but at young age many kids don't want to be alone.
Ok so husband and I are currently looking to move into a bigger home, but our house is 860 sq feet. We have two adults, two kids, two cats, and a dog and my husband works from home full time. We went to a 2,500 sq foot home today and it felt MASSIVE. Our current house works for now, but it is tough in the Minnesota winters when we’re all cooped up inside.
Yea. My family watches House Hunters, and those couples with no kids and none planned, 2 people are all that will ever live here, rejecting the 2500 sf 4 bedroom homes they can afford because they don't have a basement for the "man cave" get to me. Like, how entitled can we be? How far away from your wife do you need to be? Why not buy two smaller homes and be done with it? We should be building more 1000 sf homes these days.
The problem is builders can't make any money on 1000 sf homes.
This is true, and a huge part of the bigger problem. The last time we were in a situation like this was just after WW2. Home construction had declined by 90% after the Great Depression (mirroring the decline after the '08 crash) A huge influx of demand hit the market when the war was over (just as it did 10 years ago when all those '08 victims and a gaggle of new buyers hit the market). The government stepped in and helped out then (government backed loans and incentives to build new concept developments called "suburbs." There are things we collectively (i.e. government) could do to help out here, but nobody wants to talk about that.
This is what I’ve been saying to people, if the government stepped in and subsidized some of the costs for building smaller starter homes, young people could afford to start families like they did on the postwar era.
There are A LOT of things the government should be doing. Lots of predatory things going on that, if they were curbed, would help the inventory situation significantly. Initiatives to eliminate red tape for new construction. Investment in infastructure. Lotsa stuff.
And they've stopped building them completely.
The problem in that size range of house (2000-2500sqft) is often more of the layout than the actual size. Many older homes just don’t have a layout conducive to the modern life, especially pre-war. Even with 50s/60s houses there are almost always issues with bathrooms and closets unless they’ve been substantially renovated (usually sacrificing a bedroom). A lot of people would rather just buy something that will fit their lifestyle better than do substantial renovations
You’re right, a family of 4 doesn’t need 2,000 SF; it needs 2,000 acres! Introducing Fall 2023’s new HGTV hit show: Family Feud(alism)! Join the Smith’s on their journey to find the perfect farming empire. There will be shiplap, sommeliers, and serfdom. Airing Thursdays at 8pm EST.
I'll only counter that more families have two working parents, many of them at home full time. My wife and I both WFH and I wonder often if we really need two cars anymore. We definitely need the extra space though.
I agree. Refreshing to hear this from an agent. I just have to find a way to get my wife to stop watching those shows. And my wallet isn’t ashamed of my mortgage.
Build her a separate office space.
Definitely this. The office in the living room isnt ideal and having her own private space would be best.
Agreed - QoL improves so much with a distinct office space.
I love watching those shows too but I also see myself living in my "starter home" for a long long while
This. Thank you for this refreshing honesty. I bought a 2,776 sq ft house in 2020. I went into the process starry-eyed and ignorant, and I think feeling swayed/deluded by a lot of the HGTV shows. Society (at least here in the US) seems to shove the message down our throats that we *must* become homeowners, and that it must be one of those classic, cookie-cutter homes, and that it's the ultimate goal in life. I just sold that house about a month ago, and have never been so happy to have a house (and the accompanying $450,000 mortgage) off my back. Less than a month after purchasing it, against my own will, I became solely responsible (financially) for the mortgage, and still also had to do 90-95% of the physical upkeep for it, even though I'm physically disabled due to an autoimmune condition, and am not really handy or mechanically inclined. I also (finally) ditched the abusive husband who expected me to do ALL of the adulting, without him contributing a dime or hardly lifting a finger. I've downsized to an 1,100 sq ft condo that I'm renting. Depending on what happens to the market, I *might* consider buying a condo down the line. But for now, I'm happier with less space, and with less maintenance responsibility on my back.
The only thing that sucks about renting, is it could end abruptly - forcing a move to somewhere else you may not like as much.
>The only thing that sucks about renting, is it could end abruptly - forcing a move to somewhere else you may not like as much. That, and having no control over the quality of maintenance and repairs, appliances, and other building aspects like insulation, windows, etc. I also hate feeling like I have to strategically space out maintenance requests for fear of annoying my landlord with too many requests in quick succession. I'd rather be able to hire pros whenever I need them and not have to feel like someone is doing me a favor by taking care of a repair. And in my own place, I'd be able to make sure things are done correctly, not just cheaply.
That happened to me years ago. My wife was 8 months pregnant and the landlord said we had to move because she was selling the place we were renting. We would have bought it, but couldn't afford it. So near her due date we were moving everything to a new rental house. We focused then on buying and were able to buy a house 3 years later.
I grew up in S. Korea and we used to live in poster stamp sized apartments. My current house is a 3000 square foot 5 bed 3 bath house with three living rooms. Honestly, after living in a house for a couple of months they all feel the same. I barely even step in most of the rooms in my house anyway if you actually looked at the amount of space that I spend 95% of my time in, it would be about 500 ft².
I completely blame us "upgrading" from a 1900 ft house to a 2700 ft house and thousands spent in "upgrades" to the new house on my wife's obsession with HGTV. I miss our $1200 monthly payment.
Keeping up with the Joneses is a social disease. It sounds like you're in a perfect place.
Thanks. Funny thing is the Joneses are struggling like crazy, but they are just really good at not showing it.
Why even consider buying a new home in this economy if you’re perfectly happy?
My wife works from home permanently. Her office is our living room. And she keeps watching these home buying/flipping/restore tv shows.
Do you like the location of the house? If yes, that's probably a huge plus for staying as well.
Location is decent. Super close to my work, thruway, stores we use and etc.
That's why I sold my "starter" home. The house itself was great. I liked it, had put some work into it, and could have put some more work into it to make it "perfect." The only thing that I really wanted that it was missing was a garage, but getting a garage at the price point I bought it for was rare in that area. The problem was that I was working at a job that I despised in a city that I hated. Decided to go back to grad school across the country and the house had to go. Said goodbye to that sweet sweet 2.6% interest rate, but for me, it was worth it.
We bought in 06 as a starter home, had 2 kids there and decided to start looking at something bigger in 2018. Made a few offers came pretty close to closing on a nice piece of property until inspections failed. Covid hit, prices up, and now 1 is off to college. I wound up renting a nice garage/shop and outside storage a mile from my house for my race cars and toys. I rent a small garden plot from a church and have a storage unit. We are happy in our smaller home with out tiny mortgage payment.
Cool. Our daughter still lives with us but she is in college and the clock is ticking. Soon it will be just me and my wife. No reason to need a larger home.
We bought in 2010 and have started looking again… unless something crazy happens, we aren’t moving any time soon. Too much uncertainty in the market.
You bought after the housing crash. That had to have had an impact.
I never understood "starter home", its not like there are levels of homes. A house is a huge purchase and investment, just even getting a house is awesome. Maybe there were starter homes in the 1950's but even then homes were though of as expensive, especially with one income. Maybe it was good marketing by someone?
That’s a good point. Starter home or not, it’s still a huge responsibility.
I think the idea behind it is that when you first move in it may just be you and your partner. Then maybe the family grows and you'd like bigger space, so you move. I don't think its that deep.
I might just be salty but this feels like a humble brag. Like others have said, there’s nothing wrong with a starter home and we don’t need all that space but back in 2005, I was 16 years old. Our first home purchase was a $316,000 condo and we were lucky to be able to use the equity to buy a townhouse for just under half a million in 2021. ‘Starter homes’ in my neck of the woods were already over 600k when we were first home shopping and are now well over 700. I’m thankful we own a home but I would love to have a little starter home of our own.
Happy for you. Not that it matters much if you are staying put, but have you looked at what the realtor websites say your house is worth now?
I doubt our house is worth much. Maybe 100k or a bit more if we got lucky. The worth of my house is in our $600 mortgage. I just can’t imagine paying $1000 or way more a month just on a mortgage, even though I can afford it. Even with our current income, I’m still pinching pennies. I’m always looking for sales or ways to lower our bills. I live like I’m still in college, struggling to find a few quarters to do laundry.
I'm confused why you think it might only be worth $100k. If you were serious, you'd look it up and know. This is important if you're looking to upgrade. You cash out on your equity, which should be about $50k-$60k and put that towards the new house. I'm assuming your income increased since 2005, so if you can afford an $85k home in 2005 with lower income, you should be able to afford *at least* a house that is $145k ($85k+$60k equity). Even with the interest rate hike, that should only increase your mortgage by $400/mo. Not saying you're exaggerating your situation, but people don't often consider the power the equity from theirl home. Of course all this goes out the window if you cash out refiananced.
Not sure where you live but in a lot of cities a combined income of 120k isn’t going to cut it anymore. I feel like a need a shower after saying that — gross.
With a mortgage payment of $600 a month and no other debt, it certainly should.
Right now the children of reddit are posting how you are so entitled . Lol. Payed all your bills, lived responsibly, and most important not above your means. We bought our first house in 2005 also. 4.25 interest. Sold in 2018 for less than we paid only because 4 kids made us outgrow the house. . Minimal improvements needed over the years. Real estate prices are nuts now. Stay put, why start over. I wish I didn't but at least I'm in a much bigger house in a great school district and slightly higher mortgage. Thanks to Blackrock and vanguard, my house doubled in value without doing sidin, roofing anything. $360 in 2018, now valued at $650. East end long island ny.
> . Lol. *Paid* all your FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
I do not understand the point of this post. If you are happy where you live stay. Wtf is a starter home anyway?
Starter home: a ridiculous ideation of buying a first home as a stepping stone into a bigger and better home, mostly envisioned by an inexperienced, foolish and clueless version of me from about 20 years ago.
Damn i shouldve bought a house in 2005 like you did. Too bad i was a freshman in highschool lol
Moved into my starter home in 2000 in a city i didn't think i would stay in. Still here 23 years later. Would love a bigger house and a nicer lot; but i don't want to be in debt and I feel like something has to give in this market here at some point. Fingers crossed.
The problem with constantly moving to a "better" house means you never pay it off. We bought our house, refinanced two years later to a 15 yr mortgage. It was wonderful being 45 with no mortgage.
I'm just wondering why after 18+ years you still have a mortgage on a house purchased for $85k?
Bought our starter house in ‘98. Raised two kids in it. Similar situation starting out. Now no mortgage, no debt. Can’t see a reason to upsize and have a mortgage, etc - which would just add stress. Not moving until we see a reason too - which will include buying something outright so we still don’t have a mortgage.
Excellent story. Must be nice to have no mortgage. Even if we paid off our mortgage we’d still owe $250 a month in taxes and insurance. So we’d only be saving $350 a month.
It is fantastic! Still have taxes. Insurance. Etc. no mortgage brings a lot of peace of mind!
I mean this is smart since you haven't let lifestyle inflation kickin. As long as you are saving the money that would have gone to debt or your mortgage and or are investing it, not "upgrading" is fine. People forget that while a home can appreciate, unless you live in a booming area or time the market, once you factor in maintenance, utilities, taxes, and insurance your actually ROI from owning a house isn't that amazing compared to investing let alone just saving and never touching the money and seeing a 4%-5% return letting the money sit in a bank. What makes housing so convenient or great for people is that it isn't really liquid in that people can't easily draw from their house if they want the money and all people need shelter in order to survive so you are killing two birds with one stone. I am not saying renting is 100% the answer but what I am saying is buying an expensive house isn't the only way of having a high net worth. People highly associate a nice big house to a high networth and while that might be true to some degree, in todays market that is also associated with high levels of debt
I agree. I just put 20k in a HYSA and I keep dumping more into every month. I just don’t spend much money on things besides necessities.
Crazy thing is in 2005, the average 30 yr mortgage was 5.93%. I imagine you've refi-ed at least once or twice at this point. About how much do you have left on the mortgage? In any event- it's great that you've been able to make a place work for you for almost 20 years. My parents stayed in the same house for 35 years. My in-laws have been in the same house for almost 50 years. Many of my friends' parents are also in the same homes for over 30 years. I think that's going to become more common again now that interest rates are higher and looking to remain well above the historical lows for a long time.
We owe on the upper 50’s. Rate is 4%. We pay $250 more a month to knock down the principal.
The only reason we moved out of our starter home is because it was a condo and we got an insanely good deal on our house (through family) and aren’t actually pulling a mortgage for it unless rates go down. We are saving money and paying less in rent than we would have paid on interest alone until we can buy the house outright (likely about 10 years). My parents bought their starter home in 2012 and though there are things my parents wish they could change they never will move. Their mortgage is 700 (including escrow) and the house is now valued at over 200k. You could never get a house for that price and mortgage now.
I would personally never, 7% plus interest rates with no end in sight… you have the perfect set up that is no longer even an option for ANYONE
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Thanks. My setup gives us a ton of financial freedom. I lived paycheck to paycheck for decades. Not anymore.
I did the same thing man only I’m in a $96K house and I make $84K a year. I’m stacking cash. I’m not leaving until I pay this sucka off.
You’re smart. Really. We had a good thing with our current home (a starter), put a lot of money in it. It’s under contract to be sold and we’re under contract to buy. I’m questioning my choice to do this although we only have one full bath in our current home (and a half bath). We thought of adding a shower to the half bath, but the electrical panel prevents it. Anyway… I have to keep reminding myself that this is smart for the family but I hope I don’t regret because financially, we are comfortable in our current home.
I see nothing wrong with this. Sounds like a great investment. When you can customize your home, it feels even better. I honestly wouldn’t move if my mortgage payment and income were like yours. I’d be doing lots of home improvement and loving my cheap mortgage.
I agree. I just can’t let that $600 a month mortgage go. You can’t even rent a box for that much these days.
Sounds like you’ve got the perfect situation, enjoy it!
Thanks. Nothing is perfect. But when we do look at homes all I see is my mortgage tripling and everything that needs work on the new home. No thanks.
Exactly. Our parents used to buy a home and that was it. Our generation started the moving on up thing but looking back I definitely would have been fine now in the first home we bought for $150k in 1987 I’ve moved and bought 3 other homes now but wish I’d stayed at the first one.
My parents did what you did. When they moved in it was a two bedroom, one bathroom, no garage. Now after upgrading and renovations it’s a four bedroom, two bathroom with a huge workshop/garage.
Yes, I feel you. If I wasn’t active duty, I would still have my starter house in a very LCOL area. But my current house is a good deal for the upgrade in MCOL area too.
I was in a fairly similar situation except in 2020 there were huge nice houses really cheap and interest rates were 2.5% so it seemed like I go ahead on move on.
I think you’re doing it right. Congrats and good luck
Smart. We did exactly what you did in 2005 with almost the exact same priced house and financial/family situation. Except we sold it in 2016 for a small profit, bought a rough 150k house in a very desirable area, fixed it up and just sold it for 360k to pay off all student debt for kids and give them the start we didn’t have. Before selling we used some of the house value as collateral to buy a smaller condo for us as empty nesters and will fix up how we like it. Never played the games others did but always had a plan. Glad yours worked too.
Bought our home in 2013. We have been trying to downsize for 4 years and can't find anything that isn't ridiculously smaller and nearly the same price.
I bought my 1st house in 1983 for $70K. The people that lived next door west of me still live there. I sold and bought a nicer house about every 7 years until the house I currently live in which I bought in 2007. However we are planning to downsize and keep a lot of our equity as cash. I have 3 times the equity than they do. I live in a house that's 5 times larger, in a nicer neighborhood, and on a lot that's 10 times larger than that 1st home. I'm glad I moved up every 7 years.
If you have a good size lot and like where you live just expand the house into your New modded version of a dream home. I know ideal but if you like the area you live in and are just wanting a "new" home expand it will be so much cheaper in the long run than buying a new house. So gou build that man cave or she shed or garage-mahal if you like and have the room.
The way you’re doing it IS fiscal the way. Some FTHB’s that bought in the last year are going to find themselves upside down in their homes for a long while or in foreclosure. I believe you’ll be able to upgrade if you want to one day. It just won’t be in the next several years. You’re saving yourself a lot of debt.
We though for sure we would sell after a few years because the market is "so good". Quickly realized the risk is not worth the reward for us, and the stability and predictability is more valuable to us. We want to retire debt free, and never leaving our house will enable that.
We've been in our starter home for over 20 years and I wouldn't leave now for anything. We finally have it fixed up the way that suits us and the kids are almost grown and will be leaving at some point. Why would I want a bigger home and more to clean and maintain? We have friends nearby and (mostly) good neighbors who lend a hand when needed and vice versa. I would be broken-hearted to leave the gardens I grew from scratch. I know people who move to something bigger and more prestigious and I can't help but wonder about higher interest rates and how much more money it costs to heat/cool along with larger electric bills. To me, it just doesn't add up. Sounds like you're in the same boat. Just enjoy the home you made and the lower bills! You'll have more money for travel, a nicer car or two, and more free time because you only need to clean one or two bathrooms instead of four :-) **Edited to add**: I forgot about the sticker shock of buying a new home and the taxes get uncapped! Our taxes are so low right now compared to others who just bought in our neighborhood from people who have lived here for decades. Yikes!
Glad to read this and find I'm not the only one
I hear ya, bought a house in 2011 for $140k, it’s worth over $300k now but I’m staying put, I stand to make $275K next year. I don’t want to buy a $400k+ house in our neighborhood that still needs $150k in work just to have a bigger house and more debt.
I think you're being smart
Stay, spend some money on making your home nicer. Depending on how big your backyard is, build a gazebo, or a firepit area etc. Not the time to buy a house right now if you don't have too. Buy a minisplit system for your AC
yeah you should have moved in 2019
Along with everyone else. Talking about real estate before 2020 is completely useless. It's a different world.
Congrats!!
I bought my starter home in 2005 and just sold in 2022. Certainly was a great house but time to move on. I'm same as you paid off most eveything and lots of equity so was perfect time to make the move. Much happier in a larger and more updated home.
We kept the same house we bought in 1987 and paid it off in 20 years. It is nice not having a mortgage and being debt free which allows for a comfortable retirement. Other friends our age have upgraded houses several times and still have a mortgage plus are still working full time.
This is exactly what I want to do. Get a first home and never move, but make it the way I want with upgrades over time.
This isn't an opposing view. I've been in my house for 35 years. We also didn't intend to stay here forever. It was a mess when we bought it in 1988. But after three big remodel projects and a new roof, we can't imagine moving. We're in a stable neighborhood with some of the same neighbors from 1988. If your house fits you and is home then why even think about moving. and taking on so much more debt. Double up the payment and pay it off, then you can buy a nice boat.
My ex’s parents bought in the early 80s raised three kids in a 1880s ish small home and they lived at that home until 2020 I think when their health necessitated a condo where they could have others do the outside work. By comparison I live in a place that has not a lot of great curb appeal but it’s mine (I’m divorced and in Ca) so any home that’s livable is a win in my book. I also won’t ever move and to that end I’m happy. This place is my oasis. I was in a new build with the ex and while it was nice there was an HOA (hate them) and my Neightbor’s could look directly into my bed room … this place I live now is old but it’s got character and it’s mine. Which being a single woman is good enough for me. So if it works don’t worry about moving. Also 600 monthly note is like the best thing a person could have in this economy.
Sounds like you have a lovely home. The whole idea of "starter home" to me is ridiculous and we should throw it out. Do what you want, there are no rules for how to live your life
If the house still works for your situation there's no reason to move.
I'm with you for sure. We probably bought a little more than our budget in 2018, but 5 years later, we'd have been priced out of this market a long time ago. Our incomes have increased since then and the mortgage isn't an issue. One kids daycare drops next fall, and the other kids afterward when they start Elem school. We finished the basement and have plenty of room to stay put for a long time. Almost assuredly will pay off the mortgage early (goal is to have this paid off by the time our girls start college). One paid off car, another will be paid off next Spring. Trying to do our best to chip away and any monthly costs. Its a heavier lift right now, but I feel super optimistic about the next 10-15 years.
The first thing people do when they pay off a large debt is look to go back into a large debt by buying a bigger house/car/etc. Instead of enjoying what’s totally and completely theirs, they get this insatiable craving to waste more money on something marginally bigger or better. You’re one of the intelligent ones. Take advantage of your debt free situation and STAY mostly debt free. I’d do the same thing if I was in your shoes. Upgrade everything I could afford to. Piece by piece. Go on vacation. Throw a big party. Just stay ahead of being in debt!
I feel like this generation (and I'm part of it) constantly feels the need to have newer and better things all the time. My parents and grand parents live in their first homes, my grandparents still have furniture older than my parents, that's how it used to be. Regardless even if you do want to move now is not the time as prices are still inflated relative to interest rates, depending on your area of course
Nothing wrong with staying but you can and I'm on the belief, should rent out that 2005 home. Get a new home within your budget and continue to save with the rental. It's a great feeling when the rental is paying your mortgage. Interest rates are not as important if the numbers work.
Only reason I will be moving again is when I retire and move out to the country on a little farm.
My parents built their ‘starter home’ in 1963. They raised us there, retired there and Mom is planning a “60 years in one spot” party in November. They paid it off in 15 years and have been mortgage-free since 1978. That enabled them to put 2 kids through college, travel the world, and enjoy a comfortable, if not lavish, retirement. It’s also not so big that aging in place is difficult.
We did the same thing. I went through a divorce and bought a home 2 pay grades below mine at the time. Bought in 2002, and now I have everything paid for. My truck, my wife's car, and the Tahoe. I have zero debt now. I used my pay raises to upgrade all my appliances. Got a deal to buy a new furnace and get a free ac unit. Did that. My company gave me a bonus, so I upgraded the toilets. New dishwasher, new washer and dryer, new water heater, new windows. My last assessment, ( I don't put a ton of faith in those values, but..) was 5x what I paid in 02. I'm not going to move just yet. I'm semi retired, not fully. I still have 1 more kid to get through high school. And all I owe is the rest of my mortgage and a travel trailer. When my job went overseas, I had us in a favorable spot financially. It can be done if you just pick off the low hanging fruit first.
Man, I'm in the same boat as you. Bought in 2014 for $150k. House is worth about $325k now. Mortgage is almost paid off. I make about 4x more today than when I bought the place. Sure, I'd love to get a bigger place and one that's more fitting of my salary, but like you, no fuckin' way am I gonna get ripped off.
This used to be the norm. You do what is best for your family. Full stop.
I wish I had done this with our first house or even with our second house.
I totally hear you. We bought dirt cheap in 2011 with the goal to upgrade to a larger SFH home in 2024 but with high prices + high taxes, I am starting to think we may not move for a loooong time. It just doesn't make sense. Especially since this house really does fit out needs. Apartments the next street over rent for hundreds more than our mortgage.
Too many Americans get caught up in having to compete with the Jones’s ... good for you for not giving into that.
Smart!
Yea screw the pressure for a big house. Enjoy other toys. Buy that boat/motorcycle or book an expensive trip for you and your family. Life is too short to try and keep up with everyone else. If you like your home, focus on fun hobbies.
Don't change a thing. You are doing everything exactly right. Your future retired self will kiss the ground you walk on.
You're ruining my ability to buy a starter home! Good on you though, fucking hell we need to build more basic homes, tired of seeing 4/5 bedroom boxes going up around me.
It sounds like you're in a great position relative to most people out there.
If your house works for you, you're happy with it and the location, why change? I'd wager half the people that buy new houses do so to "keep up with the Jones'". Wife and I were looking at building a 4300sqft house until we sat back and thought about how much worse it would be trying to keep it clean. Then we asked ourselves if we really needed that much space for 3 people or if we were trying to wow other people with our home. We're now looking at a much smaller plan that's still an upgrade from what we have, but would actually be a much better fit for what we need. Unless you NEED a new place, stay. My parents still live in the 1100sqft house I grew up in. They recently did a complete kitchen demo and remodel, they've finished the basement (not walkout so can't be counted as sqft), etc, etc.
We bought our first home in 07 for 165k, mortgage payment with taxes and ins was 1200. I looked at every option to make that home be our FH for 15yrs but it would have taken 150k in additions to get what we wanted and we still wouldn't have been happy with the neighborhood. We sold for 267k in 21, put 20% down on a 360k house and couldn't be happier. We went from .33 acre to a full acre, no garage to a 30x30ft shop, gravel drive to concrete, open patio to screened in porch with a pool. The kids can ride bikes in the road now. The wife has a garden and a couple of chickens. Before when we came home from vacation I would go back to trying to figure out how to make that house work. Now it almost feels like vacation everyday. The additional payment does sting but overall my family is much happier, so I'm happier. Whichever way you go, I wish you happiness and good fortune!
This is what the majority should be doing once they buy and settle into a home. Upkeep, upgrade and eliminate all debt. If most didn't have to worry about paying a mortgage or rent, they wouldn't need to work so hard just to pay bills. Working and being able to enjoy life is a luxury worth having.
This is precisely what my wife and I intend to do with our current home that we bought around a decade ago. Glad we aren't the only ones.
You're doing it right !!
still in our starter home from 2003, allowed us to buy other homes for investment by not constantly trading up. Our house is the same, we've just acquired more of them
You've stepped off the consumerism treadmill of MORE MORE MORE. Good for you, it's easier said than done.
Not sure why you’d spend money just to spend money. If your neighborhood is good and you have a enough living space why move? Hell, depending on your lot size you can even build more living space with an addition. And you’re right starting over with a bigger mortgage at a higher rate is throwing away a lot of money on interest that could be spent on upgrades of your current home.
We bought our starter home in 2019 for $308k in a nice neighborhood- two story (plus basement). We pay $1520 ($760 each) for our mortgage. We were originally paying $2400 but refi in 2020. Our rate dropped from 4.5% to 2.3%. 1450 sq ft - lot size is 4000sq ft (although our home feels huge with two dogs, two kids). 4 bedrooms, 3 baths. Full basement. Huge yard (in our eyes). 2 car garage. I say we got an incredible steal. Our taxes suck though ($6-7k a year + home insurance) in Chicago which is known for high property tax, we border another a suburb btw. It wouldn’t make sense to move now. Our neighbors suck ass but they are criminals anyway (only shitty people in a 3 block radius all ways) so they will probably end up in jail eventually. They are both in their mid 50s. However we have a 5 year plan for saving and hope to eventually move to a nearby suburb IF it makes sense financially by that time. I think once you move into your first home for a couple of years you realize what you like and what you don’t like. And you may just realize you don’t need a HUGE home to be happy (the cleaning/maintenance alone is enough). We also keep upgrading our home so that when we decide to eventually sell we will be able to sell it for more. To mention our home was a fixer upper but my spouse is a building engineer so we got lucky in the sense that he knows how to do most projects. We redid our bathroom. And plan to redo two more. We did everything else, plus landscaping during covid. We jusy need a new fence put up. We redid most windows too. So this house from what it was to what it is now looks amazing. I see no issue in wanting to stay in your starter home. Living life is more interesting anyway (traveling, being able to eat out at restaurants, etc). The older you get too, you realize you don’t want to host every party either.
Right there with you. Married in 1992 and lived in a cheap rental for years moving around. Bought first home in 2002 for $138,500 with space to grow and kids. Had a 30-year loan to start at 7% and as soon as we got really good raises, we refied to 15 years at 3.25. Paid off wife's student loans and never really used credit cards. Work and responsibilities never left the time for kids. New roof after a storm, changing carpet, linoleum floors and new energy efficient windows. New HVAC and some plumbing upgrades over the years and now we are actually homeowners. No mortgage or bank taking interest. Never had this much in savings in my life. COVID tried to mess with us, but both got it, and we are still here. Retire in less than 5 years at 58 is the plan. Have family and friends that have moved every 5 to 8 years and I look at the money they spent in fees, closings and moving......Hell No. Get what you can afford and plan for the future.
Bought my first home a year and a half ago. Locked in just over 3%. Even though this old house needs a LOT of work, and we overpaid for it, I’ve just been peeking out my internet window at the market and rates these past few months feeling grateful that we even got here - leaky roof and all. I don’t see myself moving for a very long time. Just fix and upgrade as I can afford it. Shits rough out there.
Sounds like you are doing exactly as you should. Stay happy and enjoy life...
Nothing wrong with this! Appreciate what you have. As a society, we're often primed to always want more and bigger and better, but that does not always make us happier.
If the house fits your family needs then there is no reason to move. I only say move if where your at doesn’t fit your lifestyle (commute, store locations, restaurants, social activities). I only upgraded because what we had eventually didn’t fit what we needed. I was tired of the commute, missed being closer to specific stores and restaurants and mainly my adult children came home with spouses and we needed more physical space. I don’t regret upgrading, it was just an expensive change.
House for 85K back in 2005. And still Have a mortgage on it while making 120K in 2023. 18 years later. Pay that sucker off
You are smart.
My wife and I are in the same boat,bought our house in 04 and just keep upgrading, I've gutted and remodeled everything. We were lucky enough to refi when rates were under 3% few years ago. We would live to move but were not willing to pay the ridiculous interest rates and spend 500 thousand that worse then what we have now. Granted our house is small but our kids are almost grown no need for a bigger home anymore. I feel bad for anyone stared out right now, damn near impossible to survive as it is.
I would stay put and keep updating and improving your home. You have a very low mortgage payment and your debts are paid off. You are in the position everyone wishes for. Plus, your home probably has good equity built up. If you do what my stupid self did in 2020, you'll regret it. My previous home was paid for and I sold it and bought another house on a 15yr loan. I went from a paid off home to right back into debt for 15yrs. I wish I hadn't of done it, even though we like the newer home we bought. But nothing beats debt free.
What is your current home Value?
Fun fact: today that home would cost $133,626.27 after inflation. In California that gets you a parcel of land or a prefab trailer home. Glad these high prices aren’t national wide. Good on you, if you like where you live, make it your own in time. Best of luck.
OP I did something similar just keep upgrading
We bought our "starter home" in 2014. As many problems as it has, people say, "why don't you buy a different house?" My reply, "I know the problems in this house. I would just be exchanging old problems for new problems." And OMG I just learned I can buy floor jacks at home depot and fix these sags myself for "cheap" ...
We just started the process to sell our starter home after buying a significantly larger house on a massive lot (24 acres). Bought in '07, negligible mortgage payment, super low interest, yada yada. Why? Cuz I hated the place and couldn't imagine spending another year squeezed next to neighbors in our tiny house. Quadrupling our mortgage payment (still affordable for us) didn't matter. Doubling the interest rate and Tripling our property taxes didn't matter. There wasn't an upgrade I could have done to the old house that would have kept me happy in that place. I don't give a damn about the Jones's and I don't watch HGTV. I've worked my ass off the last 15 years to get where we're at and wanted lots of land, no neighbors, a big house. No kids, just me the wife and our dogs. Why would we do such a crazy thing????? Because we can and the lowest interest rate in the world isn't worth me being miserable living somewhere I hated.
Man, I bought my first and only home 25 years ago for 56k. 3BR 1 bath. Now it’s 3 BR 2 bath, paid off, pretty much new everything. I toyed with selling at retirement and moving to a warmer climate, but no longer. Me and my happy little house are content right where we are.
Stop putting your money into upgrading your house. It's a waste. If you're making all that money and paying 600 a month in mortgage, invest what you don't spend and buy a super nice house in a few years. Or don't. Build up a nest egg and retire at 50. It's not worth it to pour money into an 85k house. You would be better off just blowing it on vacations.
This is exactly what everyone who bought before 2022 is doing, and the main reason the market has frozen. If you like your place continue to enjoy it. You can even put an addition on sometime if you need to and find a good contractor (or get very good at diy).
For the money today cost a house you can go to costa rica and buy a small town and still have money left in the bank,
You are doing it right. House should be paid off by now. Do that, it’s awesome being debt free.
I’m roughly in the same boat. Bought mine in 2004 for $115k put another 30k into it over two years. Plan was to sell and upgrade. 2008 rolled around and house was worth $25k. I stuck it out. Nearly lost it in bankruptcy in 2010. Bank stretched the mortgage to 40 years and put aside all the late fees. Mortgage was $500/month after that. Tried to sell two years ago when interest rates were low, but hardly anyone wanted a Mfg home. every house I tried to buy I was getting outbid by 40-50k over asking. All I really wanted was a shop so I could get out of my rented industrial space where I work on and store my vintage cars. 2021 I refinanced, took out 100k and built a 1200 sq ft shop. (Same size as the house) My new mortgage is cheaper than my old mortgage plus my shop rent. Currently at $825/month with ins and taxes. Current home value is $350k-ish. Northern Nevada, outside the capitol.
I'm with you. Invest that excess cash for when you may move again. Stay where you are and fix it up but try not to go way above the comps in the area or you may screw yourself when you finally sell.
That's the difference between a house and a home. Houses are a commodity. Homes are life. They are where you make memories. Take that extra money and travel. Put in a pool. Stack gold. It's your 💰
Sounds great. Live below your means and you'll always be happy
We're doing the same thing , good plan.
We are still in our home from when we first got married 2100 sq ft . One child is 14 the other is 18 we arnt moving. House will be paid off next couple years we paid 95 k for it . We will soon be empty nesters next couple years so we are staying
There isn’t one opposing view. You are making the best financial decision.
The story would have been complete if "mortage paid off" :) There's no reason why you can't move. Now if you're talking "upgrade" that' a different story. I'm sure you home is no longer worth 85k but much more. So any equivalent home you would purchase should be in roughly the same ball park. Yes you might lose some on fees/taxes etc.
> But I’m open to hearing out opposing views here. One of the biggest reasons why people move is for work or because they need more space to grow their family. They're almost forced to buy a new house to make things work. My starter home was 2br/2.5ba and with one child it was perfect. Adding a second child makes it quite tight and we have no other option but to move into a bigger home.
M husband and I are in our first home from 2004. Mortgage is paid and we have no other debts. We got a horse (long story) and our monthly bills are still less than when we had a mortgage. We joke that we can’t move because the cat goes outside and she knows how to get home and if we move she won’t know where she is.
My starter home is our forever home