Buying a House After Retirement: What to Consider
Different considerations
As we get older, our needs in life tend to change, sometimes even drastically. Aging can also affect what you need from a house or housing arrangement. As such, most people tend to move out into a new home after their retirement. However, there are many things to consider when buying a home after retirement, from where you want to move out to, all the way to what you want to do with your old home. With so many things to consider before buying a house, the process tends to be more complicated than buying a house before retiring. To help out, we've put together a guide on what to consider when buying a house after retirement.
Location of the new house
One of the most important factors for retirees looking for a home is the location. And in truth, most seniors are interested in three factors: neighborhood crime rates, living near family, and distance to doctors. While we age, it becomes harder and harder to leave our homes, and there is a real possibility of becoming unable to. As such, we rely on our family's help quite a lot, and their assistance is invaluable. Therefore, being close to family is extremely important, and you should carefully consider the exact location of your retirement property. A real estate agent should be able to help you find the perfect compromise between being close to family and being close to doctors. However, remember some important questions to ask your real estate agent. After all, you'll want to ensure you are working with an expert who has your best interest in mind.
Proximity to family and doctors and neighborhood safety should be considered when deciding on a location.
Future maintenance costs
House maintenance costs are significant to consider when buying a house after retirement. Especially if you're considering a larger property, house maintenance can significantly drain your finances. And if you're considering house maintenance yourself, remember that this might not be possible with age. It will become more and more challenging to do things yourself until you can't maintain your home anymore. So, carefully consider if you can afford the long-term maintenance of a property you are thinking of purchasing. Also, when it comes to extra costs, remember to think about moving costs before buying the house. Hiring movers will be a requirement, especially if you want to make the trip stress-free on moving day. After all, a DIY move is entirely out of the question unless you have most of your family there to help you. Even in that case, it's still a terrible idea but a possibility.
Home safety and security
While buying a home in a low crime rate area should be a priority, even a low crime rate leaves the possibility of burglars. As such, knowing how to secure your new home is a vital consideration that you should think about. In addition to securing your house against break-ins, you should consider how safe it is for you. Most people prefer ground-floor, single-level homes with no elevation or stairs. Avoid unlevel concrete on sidewalks, stairs, carpets, high thresholds, and bathrooms without safety rails. All of them are different types of fall hazards, which are serious threats as age sets in. As such, consider a home with few or even no stairs and 100% main floor living. And when it comes to the yard, ensure it's as close to completely level as possible. These safety precautions might not seem important at the moment, but they become very serious with time. Your safety isn't something you should ever take lightly.
Making sure your new home is safe should is an important consideration.
Property type
Another serious consideration when buying a house after retirement is what kind of property type you want. A lot of types of property can alleviate some of the homeownership burdens. For example, there are free maintenance neighborhoods for single-family homes. Condos are an excellent choice if you don't want to worry about maintenance, but accessibility is something to consider there. Patio homes and townhomes are also something to consider in this line of thinking. All in all, there are many options, and you should consider the pros and cons of all of them before making a decision. However, experts from Family Affair Moving note that you should be absolutely confident in your choice before buying a house after retirement. After all, moving is challenging in retirement, so you should be sure that this is the right choice before moving in to avoid regrets.
Household budget
Generally speaking, as we go into our retirement, our income becomes fixed, and as such, we have fewer opportunities for discretionary spending. Therefore, you should carefully consider whether a property you're considering falls within your budget long-term. The rule of thumb is that, in retirement, your housing costs shouldn't exceed 25% of your yearly income. You should also consider your savings and down payment when it comes to the purchase. Of course, this step is considerably more manageable if you decide to sell your old home. But, if you're passing it on to your children, or holding onto it for some other reason, then the down payment is a serious consideration that you need to find a way around. All in all, you need to be ready for the purchase like you would before retirement. But, getting approved for a mortgage is generally a lot more complicated after retirement.
Being careful with your budget is a must after retirement.
Some closing thoughts
There are a lot of considerations that go into buying a house, and even more so after retirement. While there are always the factors of location and safety, now you have to consider them for different reasons. There is also the question of what will happen to your old home. Also, since your income is significantly more fixed after retirement, budgeting for your new home is much more complicated. With all of this in mind, you need to be sure that the home you choose for your retirement is the perfect one for you. We hope this guide on what to consider when buying a house after retirement helps you select the right one for you, and we wish you a wonderful rest of your day.
