Things to Consider Before Buying a Home in Retirement
Sitting on a rocking chair, facing the beach while the sun is setting in an orange sky is a scene most of us want to experience. It’s like the ideal scenario for a retiree – a simple and relaxing reward for years of hard work, sleepless nights, and stressful days.
But before you get lost in your daydream, you have to consider a number of factors in buying a retirement property. We’ve listed the most important things you should take into account below before buying a home in retirement.
Budget
Before buying a home after retirement, you should look at your financials first and see if you can accommodate the associated expenses.
When buying a retirement property, take into consideration the property taxes, insurance fees, homeowner association fees, utility bills, and other related expenses you have to deal with when you move in. Remember that you’ll be using the retirement money you’ve saved to pay for these expenses. Unless you’re running a business, you’ll have no other source of income other than your monthly pension.
To buy or to rent? Is it better to get a mortgage or just rent the property?
Your decision should be based, first and foremost, on your budget. Owning a home will give you more security and comfort but it may be more expensive compared to renting a house.
For some, it’s better to buy a retirement home early when you still have a job that can pay the mortgage. Once you retire, you can immediately move to your retirement home and spend your days relaxed. On the other hand, if you rent your retirement home, you won’t have to worry about property taxes, homeowner fees, and maintenance costs.
Also, take into account medical emergencies in your budget plans for buying a retirement property. There should still be enough room to pay for emergency expenditures after you’ve factored in the home maintenance costs and residential expenses you’ll have to pay for.
If you have don’t have enough retirement money, buying a smaller house in cash may be more fitting to your financial situation. You’ll also feel more secure since you don’t have to struggle to budget your monthly expenses this way.
Location
When buying a retirement property choose one that’s near necessary amenities. Convenience stores, public market, and recreational parks should be near your location. If possible, they should be within walking distance from your house. Hospitals, especially, should only take you a 5 to 10-minute drive to get there
Consider also the distance of your home from your loved ones. You may want to visit them every now and then, and living in a faraway land will make this difficult to do.
Take note of the property tax rates on the area where you plan to move. This may impact your budget and make it more expensive to live in your retirement home.
Maintenance
A home where you need to do little maintenance should be considered when buying a retirement property. Remember that you’re not getting any younger and you don’t have the physical capabilities you had 30 years ago.
If you can hire a helper to clean the house for you and do maintenance stuff, that would be great. But if you don’t have the financial capacity to hire one, it’s best to grab a low-maintenance property. A low-rise condominium can provide this kind of benefit. They’ll have sweepers, plumbers, and utility workers that can assist you in repairing things.
Community
People who plan on buying a retirement home early can try and rent a place near their desired location and feel the community. You’ll experience first-hand the kind of culture people have there. You’ll also get an idea of the temperature, noise, traffic, air, and other factors that can affect your quality of life once you start living in the area.
Some people may still want to live in the city to enjoy the hustle and bustle of the community. Some may want peace and quiet, away from the urban jungle. The choice really depends on your preference.
When you retire, you’ll have more time than you can manage; quite the contrary of what you had during your formative years.
Now that you have the time to do what you want, it’s best to live in a community where it encourages you to spend time on a lot of activities. The area should offer facilities that will let you practice sports, cultivate gardening skills, and other hobbies that can simultaneously help you kill time and teach you something new every day. Find a property near a facility that will let you spend time with your long-forgotten passion.
If you have a pet, look for a community with a pet-friendly environment. A condominium may have strict guidelines for pet ownership to the point that you have to leave your pet somewhere else.
Design
You may be dreaming of buying a retirement home early and setting it up on the beachside for a relaxing view. Maybe you want to have a large house that can accommodate a large number of guests for holiday gatherings. It’s easy to get carried away dreaming about how fantastic you want your retirement home should be.
When buying a house in retirement, think if you really need one with lots of rooms. Would it be helpful to have a second floor or rooftop on your retirement house? Most likely, you’ll want something that has just the right amount of space to make you comfortable to move around.
When buying a retirement property, look for one that doesn’t have stairs. If that’s not possible, at least choose a home with stairs that aren’t too steep to climb. Hallways and doorways should also be big enough for installing handrails or accommodating wheelchairs.
Security
Retirees are often targeted by scammers and burglars due to their weaker ability to fight back. When buying a house in retirement, select a place where there’s tight security. A village where there’s a manned outpost that enforces a resident-only access to the community is the ideal choice.
MoneyToday South Africa is a financial website aims to assist consumers with comprehensive information on personal finance, loans, insurance, investment opportunities, financial guides, tips and comparison of a large number of finance and insurance companies on the South African market.
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