Buying a home after you have retired may feel like an overwhelming challenge. You may be asking: Should I stay in my current home? Should I downsize to a smaller house? Will moving into a new home fulfill my needs? Buying a home for retirement is a financial commitment, but comes with a return of investment and a list of benefits! Whether you are looking to downsize or simply desire a fresh start in a new home, here are some considerations to ask yourself along the way.
The first step to buying a retirement home is choosing the area you wish to live. Real estate is all about location, meaning it is especially important to choose the correct spot to retire. Depending on the situation some of the factors that may influence your decision include proximity to friends and family, the yearly climate, and neighborhood preferences. Perhaps a community with sidewalks for evening strolls, or nearby parks for afternoon picnics will suit your needs.
Purchasing a home upon retirement depends on your budget, and how much you are willing to spend. Of course, choosing to apply for a mortgage is always an option although most include home buying into their retirement plan. If you are planning to purchase or build a retirement home, knowing how much you can realistically afford to spend will help set expectations.
It's well-known that the cost of owning a home is more than just the mortgage, taxes, and insurance. Factoring in the expense of maintenance and upkeep is also an important consideration when browsing for a retirement home, as most desire low-maintenance living. Whether you are seeking a home with ample yard space for a seasonal garden, or a neighborhood with homeowners association that tends snow removal and lawn care, the award winning agents at Choice Properties will help you meet your goals.
Choice Properties offers you a chance to find the home of your dreams. We work with your budget and ideas in mind to support your ultimate vision. Call us if you are ready to check out the available inventory or to speak with a reputable agent who can assist you with your home buying needs.
Moving into a smaller home may appear to be a step down, but it's actually got quite a few upsides. You save money, save time and have less clutter. In fact, downsizing could be just the fresh start you need. There are plenty of smaller houses for sale in Ohio that would fit your needs.
However, if you are thinking of downsizing, then it must be done the right way. We have some tips to ensure that your downsizing dream can become a reality.
Planning ahead is key when you're looking at smaller homes. Did you have plans for the extra space you have now? Or is that just real estate being wasted, in which case you're better off selling and going somewhere smaller. But only you can make the decision of keeping or losing extra space.
And it's not just the space, it's also everything that's in that space. Clean out the clutter, throw out what you can and sell the rest. That's cash in hand, and less stuff that you have to take care of. A larger family home can take several hours a week to upkeep, and it may even be impractical if your children are grown and out of the house.
A probable advantage you'll see from downsizing is the ability to buy the smaller, less expensive home in cash and end up mortgage free. For individuals who are close to retirement, this is a very popular option. Statistics show that in 2016, sellers aged 62 and above sold them home for an average price of $250,000 and bought a new home for an average price of $240,000.
While it is true that it is the older generation, aged 62 and above who are downsizing, their primary reason for doing so in a lot of cases was wanting to be closer to family and friends. In a study conducted about downsizing, 21% of the participants stated that they were moving due to retirement, 15% because their home is now too large and 10% because the neighborhood they are in has become less desirable.
Purchasing a home is an investment of time, effort and, of course, money. Indian Lake is a premier location for individuals and families looking to live in a place with a great community and activities for every season. The question of buying a home in Indian Lake should focus on a person's budget and desired payment plan. Learn some tips for knowing whether now is the right time to make an investment in a home in Indian Lake.
Affordability is the main factor in calculating payments. The 43% debt-to-income ratio rule is generally applied by the federal housing administration (FHA) as a guideline for approving mortgages. The ratio helps determine if a borrower has the ability to repay the mortgage. Market conditions play a role in this calculation. Consider also the following expenses in addition to the mortgage payment:
The total should not equal more than 43% of the monthly gross income. Other expenses such as credit card debt, student loans and other debt should also be considered. It is recommended room is left to take on additional debt in the case of needing a new vehicle (and car payment).
Other expenses should factor into the decision to purchase a house including vacation budget, hobbies and other expenses. It can help to consider looking at a less expensive house as a place to start rather than at the top end of the budget where less wiggle room exists.
A down payment can be a significant portion of the upfront cost of a home. Generally, 20% of the home price is recommended as a down payment to avoid paying private mortgage insurance (PMI) which may add $50-$100 per month onto a mortgage. A smaller down payment is not necessarily a bad thing but some of the bonuses include more lender choices, a smaller mortgage payment and more chances to save down the road.
The opposite of high season in the preferred area is best when buying a home. The off season is a great time to look at properties, including the month of October for families with children as school will already have begun. The perfect market conditions for home buying are challenging as prices fluctuate but looking in off season has advantages to finding the right homes for the right value.
Affordability is a big factor for individuals and families looking to buy a home in Indian Lake. One of the more affordable areas to live with many activities, great schools and community life to explore, it still helps to follow tips from the pros about how to find the right property at the right time to make that investment worthwhile.
Contact Choice Properties agent who are ready and able to assist you
in the home search for that perfect Indian Lake property.