“Just get in the market” is advice most buyers hear early, especially when prices feel intimidating and waiting feels risky. Buying something smaller often feels like a responsible way to get started, with the assumption that upgrading later will be easy once life and income catch up.
What tends to be overlooked is the cost of moving itself. Not the mortgage or the interest, but the friction that shows up every time a property is bought or sold. Those costs are quiet, unavoidable, and easy to underestimate when the focus is on monthly payments.
When a home is purchased with the expectation that it will be temporary, that friction doesn’t disappear. It simply gets deferred.
Why starter homes feel safe
Starter homes usually come with smaller payments and a lower sense of commitment, which makes them appealing early on. They create a feeling of flexibility, as though you are keeping your options open rather than locking yourself into something long term.
The catch is that moving later is not free. Selling and buying again means paying another round of transaction costs that do not improve your lifestyle or build equity. They simply make the move possible.
The cost most people underestimate
Every real estate transaction comes with fees. Land transfer tax, legal costs, commissions, moving expenses, and various smaller items add up quickly. Paying them once is part of homeownership. Paying them multiple times because a move was always planned can meaningfully change the economics of buying small “for now.”
That second move often arrives sooner than expected, driven by family needs, work changes, or lifestyle shifts. When timing is dictated by life rather than choice, costs tend to feel heavier.
When buying small creates pressure later
Buying a home that no longer fits tends to turn moving from an option into a necessity. At that point, decisions are shaped by urgency rather than opportunity. Inventory, pricing, and timing may not line up, but the move still has to happen.
Homes that allow for a bit of growth, whether through layout, location, or flexibility, often reduce that pressure. The value is not just in space, but in the ability to choose when to move rather than being forced to.
Stretching with intention
Paying more upfront does not automatically mean taking on more risk. In some cases, choosing a home that works for longer can reduce total housing costs by avoiding an extra transaction altogether.
This does not mean pushing payments to the limit. It means thinking about how long a home is likely to serve your needs and weighing that against the real cost of moving again.
The takeaway
Starter homes are not a mistake by default. They can work well when they genuinely fit the next chapter of life.
The hidden cost shows up when a home is clearly temporary. Each move carries friction, and that friction compounds over time. Sometimes the more durable choice is not the smallest one you can buy, but the one that reduces the need to move again too soon.
Disclaimer: The information in this article is provided for general educational purposes only and does not constitute financial, legal, or tax advice. Readers should consult qualified professionals before making decisions based on this content. View our full Disclaimers & Privacy Policy →
“Just get in the market” is advice most buyers hear early, especially when prices feel intimidating and waiting feels risky. Buying something smaller often feels like a responsible way to get started, with the assumption that upgrading later will be easy once life and income catch up.
What tends to be overlooked is the cost of moving itself. Not the mortgage or the interest, but the friction that shows up every time a property is bought or sold. Those costs are quiet, unavoidable, and easy to underestimate when the focus is on monthly payments.
When a home is purchased with the expectation that it will be temporary, that friction doesn’t disappear. It simply gets deferred.
Why starter homes feel safe
Starter homes usually come with smaller payments and a lower sense of commitment, which makes them appealing early on. They create a feeling of flexibility, as though you are keeping your options open rather than locking yourself into something long term.
The catch is that moving later is not free. Selling and buying again means paying another round of transaction costs that do not improve your lifestyle or build equity. They simply make the move possible.
The cost most people underestimate
Every real estate transaction comes with fees. Land transfer tax, legal costs, commissions, moving expenses, and various smaller items add up quickly. Paying them once is part of homeownership. Paying them multiple times because a move was always planned can meaningfully change the economics of buying small “for now.”
That second move often arrives sooner than expected, driven by family needs, work changes, or lifestyle shifts. When timing is dictated by life rather than choice, costs tend to feel heavier.
When buying small creates pressure later
Buying a home that no longer fits tends to turn moving from an option into a necessity. At that point, decisions are shaped by urgency rather than opportunity. Inventory, pricing, and timing may not line up, but the move still has to happen.
Homes that allow for a bit of growth, whether through layout, location, or flexibility, often reduce that pressure. The value is not just in space, but in the ability to choose when to move rather than being forced to.
Stretching with intention
Paying more upfront does not automatically mean taking on more risk. In some cases, choosing a home that works for longer can reduce total housing costs by avoiding an extra transaction altogether.
This does not mean pushing payments to the limit. It means thinking about how long a home is likely to serve your needs and weighing that against the real cost of moving again.
The takeaway
Starter homes are not a mistake by default. They can work well when they genuinely fit the next chapter of life.
The hidden cost shows up when a home is clearly temporary. Each move carries friction, and that friction compounds over time. Sometimes the more durable choice is not the smallest one you can buy, but the one that reduces the need to move again too soon.
Disclaimer: The information in this article is provided for general educational purposes only and does not constitute financial, legal, or tax advice. Readers should consult qualified professionals before making decisions based on this content. View our full Disclaimers & Privacy Policy →
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