Buying a home after retirement can be a practical challenge and potentially one of the most difficult — decisions you can make. Where do you want to live is the next big question retirees have to face in their life. Such decisions can significantly influence your financial situation. If you are looking to move to the home of your dreams post retirement, you must, consider several factors before making decision. In this article, we are going to look at some of the things to consider when buying a dream home after retirement :
Factors to Consider:
House location
If you're buying a home after retirement, the first thing you should do is choose the right location. It's the most important factor when buying real estate. Usually, older people prefer living close to families and friends. While buying a home after retirement in the countryside is a good idea, buying it somewhere that is too far from all the basic facilities like the nearest health center, nearby shopping complexes, nearest pharmacy, bus stops, etc., could mean more expenses.
Size of house
Typically, your home after retirement would house only two people, you and your partner. This is why it is always advisable to opt a home with a smaller configuration. A smaller house means you will have to pay less. It would also save your money later on house maintenance. Bigger home would mean more efforts into maintenance and after a certain point, house-helps would be required for maintenance for which you have to pay more.
Budget
Financial condition is another important factor to consider before buying a home after retirement. Many banks are offering home loans for senior citizens who have retired from their job with some benefits and select the one that you can easily repay. Also, if you think that you might not be able to repay the loan entirely and might need some help, the best thing to do is to seek your advice from your family. It’s always best to have a completely honest talk about finances before you take out that mortgage to get rid of hurdles in the future.
Current home equity
The best idea to take out a mortgage is by avoiding it in the first place. Before you go ahead and apply for a housing loan, check if you have enough equity in your current home. Your current home equity can help you buy a new house after retirement. With enough home equity, you will be able to buy your dream house after retirement without taking out a mortgage.
Additional Cost
Financial planning is not the only important thing when buying your home after retirement but also you have to save money for additional expenses. Many retirees tend to buy a used home or a home with different floors, then you have to face additional problems in paying additional expenses include maintenance, repairs, etc. Make a wise decision to purchase a newly constructed house with quality facilities such as wheelchair access, ramps alongside stairs, walk-in shower, slip-prevention floor, grab bars, etc.
Round the clock security
Due to the rising crimes against elderly people in cities, security should be a major priority. Buy a home that has established security system to mitigate security risks. Some of the common security features that you should be looking for include 24/7 security, CCTV facility, a gate-house, and security alarm systems.