Also, where you choose to live will play a major role in your retirement lifestyle. If you’re in the market for a retirement home, consider these tips to help get you started.
Create a Post-Retirement Budget
The first thing you want to do when you’re considering your retirement home is to start developing a budget for your golden years. Depending on how close you are to retiring, this budget could look quite different than your current one.
Creating a budget will help you make the best decisions throughout the rest of the home-buying process, such as what kind of home you can afford and how to finance the home.
Your budget should include all your projected expenses and income. For instance, you need to factor in your annual income, monthly spending, estimated down payment, type of loan you will qualify for, and the average APR you can expect.
Once you figure out your home affordability, you will need to determine how you will pay for the home. Have you accumulated enough substantial assets to pay cash for a smaller home, or will you need to seek financing? If you’ll require a mortgage loan, will you need to go with a 15-year or 30-year term?
Pick the Right Location
Another thing to consider when you’re planning to buy a retirement home is where you want to live. Location will impact both your finances and lifestyle.
For instance, if you’re planning to relocate, research the property tax implications. Also, will your new location let you exempt your retirement benefits, or will you have to pay taxes on your Social Security benefits?
When it comes to your lifestyle, where you live always makes a big difference. Ask yourself what your goals are. Do you want to spend your golden years near friends and family? Are you looking for a warmer climate? Do you want to have quick access to medical care and certain activities?
If your current location doesn’t offer these factors, you may need to determine your priorities so that you can enjoy your retirement to the fullest.
Make Sure the Home Will Allow You to Age in Place
Finally, it’s important to think about aging as you choose your retirement home. Most seniors prefer to age in place rather than having to switch homes late in their golden years. Therefore, it can help to think of your retirement home as your permanent home.
Think about the layout of the home, such as how many stairs there are, where the bathrooms are located, whether it allows for potential modifications, and so on. Moreover, factor in maintenance responsibilities when you’re choosing a home, as you may not want a place that will require extensive upkeep.
other valuable tips:
Retirement Decisions and Planning – Should You Consider It?
More retirees resort to reverse mortgages – Some FAQs on HUD’s reverse mortgages
Your golden years are meant to be enjoyed, but it’s essential to put yourself in a good financial position and to live somewhere that lets you live your best life for years to come. Remember to make a smart, carefully planned budget that includes all your estimated income and expenses so that you can determine what kind of home you can afford.
Choose a location that will ultimately help you thrive in retirement, and pick a home that will help you age in place. Afterward, you can kick back and enjoy the benefits of your hard work!
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