What to Consider When Choosing a Home to Retire In
With retirement right around the corner, you might mentally prepare to sell your home and move into a new place. There are plenty of reasons for moving after retiring, such as to be closer to family or to reduce your monthly expenses. But even if you’re okay with the idea of moving, you might have trouble choosing a home to retire in.
This is a big decision with major financial implications, so it’s important to choose a home that meets your current and future needs, or else you’ll find yourself searching for another home in a few short years.
Here are five questions to help you choose a house to retire in.
1. How much can you afford on a monthly basis?
Your retirement income will likely be less than your income while working. So it’s important to limit your monthly costs. Retirement can be a huge financial adjustment, but the transition might be easier if you significantly reduce your housing expense.
One way to reduce your housing expense is to pay cash for your new home using all or most of the profit from the sale of your old house. This will likely involve moving to a smaller home and possibly relocating to an area with a lower cost-of-living.
If you can’t pay off the new home, make a substantial down payment on the property to lower your monthly payment.
2. How do you feel about outdoor home maintenance?
If you want to enjoy the benefits of ownership, but you’re not interested in outdoor work or maintenance, a condo might be an option. Condo associations often care for the exterior of units. This including cleaning the gutters, cutting the grass, replacing the roof, painting and power washing.
Condo living also means you’ll pay a monthly association fee. In the long-run, however, a condo fee might be cheaper than what you would pay for similar services in a single-family home.
3. How much square footage do you need?
Determining the amount of space you need after retiring can also help you decide between a condominium, a townhouse or a single-family home.
If you’re an empty nester, you probably don’t need as much space as before. Even so, consider the possibility of grandchildren spending the weekends with you, or moving an elderly parent into the home at a later time. Whatever home you purchase, make sure it can accommodate your family‘s changing needs.
4. Do you have an active lifestyle?
Sixty is the new 40, so you might plan on spending a lot of time outdoors during your retirement years. Living in a community with resort-style amenities can offer more choices for your lifestyle. These include walking trails, golf courses, pools, tennis courts, and much more. You might also prefer neighborhoods located within a short drive or walking distance of restaurants and shopping.
5. Do you need mobility assistance?
It’s also important to purchase a home that allows you to be as mobile as possible. This might include a home with one level, wide doorways or a walk-in shower if you use a walker or wheelchair.
Even if you don’t need these features now, you might need them down the road. Buying a home with these amenities prevents having to move later on.
Cherry Creek Mortgage is committed to helping homebuyers at all stages of life. Whether you’re looking for a conventional loan, an FHA loan, a VA loan or a niche product, we can provide the assistance you need. Give us a call and let our loan experts guide you through your next home purchase.