Mistakes to Avoid When Buying Your Retirement Home

Posted by Arizona Vacations on September 19th, 2017

It is common for seniors to decide to sell their current home and invest in a retirement home instead. For many, this includes downsizing, although some choose to upsize their home. There are many considerations to make, including the location, cost and size. It is important that you spend the appropriate amount of time planning for it so that you end up with the perfect place to live out the rest of your life.

Working with an experienced realtor, such as Josée-Marie Plant, PLLC, can diminish many of the pains of buying a new home. This can also help you avoid some of the most common mistakes that occur when people invest in their retirement home.

Not Budgeting Accurately

One of the biggest mistakes people make when buying a retirement home is that they do not budget well. Many base their estimates on their current income rather than their retirement income. It is best to make calculations that include situations that might affect the income, such as a spouse passing away or a medical issue that leads to significant out of pocket expenses.

Another part of the budgeting that people forget to include is the additional expenses, such as taxes and closing costs. There are also monthly expenses on top of utilities and insurance, such as homeowners association fees, that can quickly increase the expense of the home. The cost of living might also impact how long retirement savings last, especially for those who move to a different city. These expenses can quickly turn an affordable-seeming house into one that is too expensive. Discuss possible expenses with Josée-Marie Plant, PLLC, or another realtor.

Waiting Until They Retire

Many seniors wait until they retire to invest in their retirement home. However, this can lead to issues with financing, since they no longer have an income. Securing a new mortgage as a retired person might make it much more difficult to get good terms. Buying your retirement home before you retire also helps you to have a better understanding of the monthly expenses before you are on a fixed income. You also get a head start on renovating or making repairs and paying off any mortgage, especially if you rent it out before you move in.

Working with a professional real estate agent, such as Josée-Marie Plant, PLLC, can help you find the right home and avoid many common mistakes. Before you start shopping around for new homes, it is best to calculate your expenses accurately to ensure that you buy something you will be able to afford through your retirement years. This reduces the chance you will need to sell at a later time.