For most people, planning their retirement is very important, even if it is still 20 or 30 years away from it. If you are one of those people, you are probably thinking about buying a retirement home. Based on a survey conducted by USA Today, about 33% of adults in the United States aged 45 to 65 plan to move after they retire. An additional 24%, however, do not have any plans yet about their retirement. This clearly states that for most Americans, buying a house is one of the factors that should be carefully considered when planning for retirement.
There are also many things you need to consider when buying a retirement home, and one of those is getting a loan. While many people only start considering buying a home as they near the end of their career, other people begin planning to buy one earlier. But getting a retirement home loan is actually great if you want to prepare for your retirement years proactively by clicking here to find out more.
In addition to that, there are many other factors that you need to consider if you plan to buy a retirement home. Here are some of the things you need to look into in your decision-making process.
There will be other housing costs other than your mortgage
If you plan to buy a retirement home, you need to remember that the cost of buying one does not end with qualifying for a loan. In fact, even if you choose to pay cash for your retirement home, the housing costs do not end there. It’s because you will still need to pay for property taxes and maintenance costs.
Therefore, before you commit, it is essential to think about all the costs of a house for retirement first. If you can just hardly afford the loan on your retirement home, then you might find yourself stunned by the ongoing costs of living there. You need to consider figuring out the expected annual expenses before you commit to any particular house. Try drafting a retirement budget based on your expected income and other possible living expenses, such as travel and health care.
The location of your retirement home is very important
When buying a home, location is needed to be thought about well. There are several factors you need to consider when choosing a location for your retirement home. One of those is the climate. Many people dream of buying a house in their favorite vacation destination. However, not because you love a place during its best season does not mean it is the ideal place for your retirement home. You need to think about the possible weather conditions that you might encounter there, like the winter weather and the hurricane season.
In addition to the climate, you also need to look into the local amenities and services. This is because your needs may change as you age. Try to look for a location that is near amenities and services like hospitals and grocery stores. You can also ask opinions from local retirees about their experiences to give you ideas if the home you are considering for retirement is in a good location.
Plan with your significant other
If you have a significant other, it is also important to talk to him or her about what you want when it comes to your retirement home. Talk about what kind of home and lifestyle you wish. Sometimes, this may need some compromise, but you need to ensure that you reach an agreement where both of you can be happy.
Think about accessibility
When looking for properties, you also need to look into their accessibility. For retirees, single-story properties are a popular choice. It’s also better to look for homes with wide entryways and hallways, step-in showers, and rooms that have enough space to move around even when in a walker or wheelchair.
Buy a retirement home based on your future income
If you are going to buy a retirement home early, you need to make sure that you calculate how much house you can afford based on your post-retirement budget and not your current income. Even if your monthly income would stay roughly the same, the amount you can afford when you retire to spend on home-related expenses may significantly change.
Make a down payment wisely
Some people find it attractive to put their life savings on a down payment to lower their monthly mortgage payments. However, this can eventually lead you to be house rich and cash poor, leaving little extra budget for unexpected expenses or emergencies. With this, try to talk to your lender and financial advisor on how you can choose the right loan or mortgage option and debt structure that is perfect for your needs.
These are some of the important things you need to consider if you are planning to buy a retirement home. It is indeed essential to start planning for retirement as early as possible. This includes buying a retirement home now rather than waiting until you’ve retired. We hope these tips will help you plan for your future retirement home to ensure that you are going to spend your golden years in a home and place that will make you feel happy.