If you’re retired and looking to buy a home in a new area, or downsize your existing home, there are a few things you’ll want to remember. The wrong house could hinder your retirement and cost you a lot of money. However, the best property for you could be what you need to top off a perfect retirement.
To help you plan your retirement and buy a house in Florida, we have a few pointers to remember.
Be Realistic About the Location
The location of your potential property is important, especially in your retirement years. It may seem appealing to have a house tucked away in the woods and secluded from everything else. However, how long of a drive is it to get groceries, go out for supper, head to a doctor’s appointment, or meet up with a friend?
As you get farther into your retirement, driving may not be as appealing anymore. You may find yourself having to visit the doctor’s office more frequently. Also, being too secluded can make you feel lonely.
Don’t Use All of Your Retirement Savings
It may be tempting to pay for your retirement home in cash so that you don’t have a new loan to take on. However, if you do that, what are you left for in your retirement savings?
Tying up your retirement funds into your home isn’t the wisest decision, unless you have tons of money to last you decades. Taking on a new mortgage isn’t the end of the world, and it will likely still allow you to do the things you love.
Take a look at the different mortgage options, like a USDA loan. Talk to a lender and view a USDA loan map of Florida to see if you qualify.
Be Realistic About the House
Maybe you found the perfect retirement property for your life at this moment. However, will the house still work for you five, 10, or even 15 years down the road?
A house that has multiple stories with tons of stairs may not be as appealing the older you get. You could find yourself having to spend more money upgrading the property to be more suitable as you age, or having to move altogether.
Can You Afford It?
Buying a house when you retire is different from buying a home in your 20s. At that age, you have decades worth of work ahead of you, so you know you’ll likely always have a consistent income coming in.
When you retire though, your income will not be the same. You need to factor this in. Ask yourself if you can afford the potential property with your retirement money for multiple years? Do you have enough set aside into an emergency fund? You wouldn’t want to find that in the next five years, half of your retirement savings is gone due to your new house.
