Buying a Home for Retirement

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.

Location

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.

Budget

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.

Maintenance

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.

There are several Pros and Cons of Renting When You Retire, especially when considering homes in Indian Lake Ohio.  Older renters are on the rise, with households aged 55 and over contributing 42 percent of renter household growth as reported by the Joint Center for Housing Studies at Harvard University in 2015. The rate will only increase as more Baby Boomers hit retirement age. Consider some of the pros and cons of renting in retirement.

 

Pro: no more mortgage

People who choose to rent in retirement are no longer making monthly mortgage payments. Depending on the financial situation, this may mean entering retirement debt-free.

Con: No more taxes

Homeowners receive tax incentives including deductions for property taxes and mortgage interest. Savings can add up in states with high property taxes.

Pro: No longer tied down

Dream retirement looks different for people but many enjoy the freedom of not being tied to a home. Renting offers flexibility since there is no house to maintain.

Con: Losing 'homeowner' status

A sense of pride comes with being a homeowner. Emotional attachment may occur with a home so mental preparation is required before selling and moving on.

Pro: Less stress over maintenance

Property ownership comes with a huge burden of maintenance which becomes more cumbersome with age. A single-family home may mean responsibilities for repairs, manual labor, mowing, shoveling snow or cleaning gutters. A rental means the landlord or property management company generally takes over those tasks.

Con: Expenses

Renting can be more expensive than owning one's own home, depending on location. Interest rates for mortgages may make it more affordable to consider home ownership.

Pro: Amenities and no fees

A single-family home may provide stability but renting may offer amenities such as a swimming pool, fitness center, party room, lounge and private parking. If traveling in retirement, a concierge can accept packages as a nice perk when people are away.

Con: Dealing with landlords

It takes getting used to having someone else in charge while renting. Having a landlord or property management company can feel oppressive. Screen potential places before signing a lease, talk to previous tenants and find out how the landlord responds to maintenance issues. The landlord or property management company can decide to raise rent once lease is up.

Renting versus home ownership is a personal decision for people entering retirement. Many factors must be taken into consideration including age at retirement, health, economic status and any desires to travel. It is up to each individual or couple to decide what will work best in retirement and provide for their individual needs moving forward.