First home vs forever home: how to make the right choice for your family

Collaborative Post | Buying a home is a long, difficult and invariably expensive process – one which demands a great deal of your time, effort, money and patience to get right. It is the single biggest financial investment you are likely to ever make, and hence an investment that comes with a considerable amount of planning, thinking, and, yes, worry.

There are many hurdles to clear when it comes to buying into property in the UK, price being chief amongst them; it is no secret that homes are getting more and more unattainable for first-time buyers, and that stagnating wages are only making things harder for younger families. But another, lesser-sung factor at play is one of indecision. How can you buy a home if you don’t know what kind of home to buy?

Here, we’ll consider this difficult decision through the lens of the ‘first home’ and the ‘forever home’ – two distinct concepts that could help you refine your thinking on how to approach the property ladder.

Photo by Jakub Żerdzicki on Unsplash

The difference between a first home and a forever home

Unsurprisingly enough, a first home is exactly that: the first property you buy. Of course, it takes on colloquial meaning with respect to how most people approach their first home. Historically and for many house buyers, a first home is a starter property, a foothold by which to get a better grasp of the property market. It is often used as a launchpad to a better home, via the mechanisms of value appreciation and active home improvement.

A forever home, meanwhile, is the platonic ideal; the home which will remain yours until the end of your days, that meets your needs in every way and never challenges you beyond the expected repairs and renovations of decades lived within it. Choosing between these isn’t really the decision many buyers face, but it is a good opportunity to look at some major factors that influence any house-buying decision.

Choosing a starter. home vs a forever home

First, though, let’s take a solid look at the specific pros and cons with respect to each property archetype. First homes are typically much, much cheaper, being that they are targeted to meet your bare minimum needs and maximise affordability. They are an easy entry onto the property ladder, and just as viable a store of value as any other property.

They can also be easily renovated to accommodate your needs – though, that’s as a result of their often-desperate need for renovation in the first place. You may have also made serious compromises on location in order to reach that affordability threshold. Forever homes, meanwhile, are your bid for long-term personal and financial security – with enough space for family growth and all your amenities close at hand. This, though, comes at the literal expense of higher asking prices and more short-term financial risk.

Key factors that should influence your decision

So what should influence your decision? Money is one thing, of course; you can only buy the house a mortgage provider determines you can afford. Practicality is another one, though; new homes are more readily liveable than doer-upper starter homes, meaning less time and money spent renovating in order to get settled.
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Location, though, is the major crunch-point for decision-making. It’s a deal-breaker if you aren’t in close proximity to preferred transport links, school catchment areas or even supermarkets. Ultimately, choosing between a starter home and a forever home comes down to flexibility; do you have financial flexibility, or lifestyle flexibility?


Disclaimer: this is a collaborative post.