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Things to Consider before Investing in Retirement Homes
While the process for buying a home to live out your retirement years in is similar to buying any single family home, the decisions you’ll need to consider when making that downsize or retirement lifestyle home purchase differ slightly than the considerations buyers face during their working years. A realtor in PebbleCreek can help you find just the right home for your golden years, but before you visit a PebbleCreek golf community and start selecting paint colors, here are a few things to think about when buying a retirement home.
Whether you’re looking to downsize so you can spend more of your time on travel and less on home maintenance, or whether you’re looking to hang your hat in PebbleCreek active adult community, location is always a key factor in any real estate decision. Many retirees choose to find a home in a place with lots of sunny days and limited cold or snow. Obviously, things like proximity to family and friends will play a role in your decision, but you should also consider the fiscal realities for potential areas. States differ in how they tax your Social Security and pension benefits, and of course property taxes should be a consideration. Buyers should also consider how a property is likely to appreciate or depreciate in the future. Your heirs will thank you!
Once you step away from your desk permanently, both your spending and your earnings change. Now you have to consider how the money you’ve saved coupled with Social Security or other pension benefits will sustain you over the long term. Downsizing your home may help the money you’ve saved for retirement last longer, or it can free up cash so you can travel. While many retirees boast a paid-off mortgage, if you’re not in a position to purchase a retirement home free and clear, you should carefully consider how you’ll budget to pay a new mortgage. A 15-year mortgage saves money in the long term, thanks to better interest rates and shorter loan terms, but it means higher monthly payments in the interim.
Though most retiree communities are designed with active adults in mind, retirees should also think long term. As individuals age, getting up and down stairs, hauling laundry to a basement or to a second story, can become significantly more difficult. For retirees who plan to age in place, looking at retirement homes in PebbleCreek without a lot of stairs is a savvy move.
There’s more to home ownership than the cost of the mortgage and taxes. Retirees still need to factor in the cost of maintaining their homes, and in many cases, retirees should expect their maintenance costs to be slightly higher than they once were. While it may have made sense for you to climb the ladder to clean the gutters, trim the trees, and caulk the windows on the second floor, for many retirees it becomes a practical and safer solution to hire a lot of the maintenance work out. Maintenance concerns are one reason many retirees opt to find maintenance provided communities.