Retirement brings about numerous changes, with one of the of the most significant changes possibly being your change of residence. Homeowners who have recently retired or who are planning their final days in the workforce may need to reevaluate their living situations. This might leave thoes retirning and looking for a new home, wondering what they need to consider. Upgrading, downsizing, or even buying a second home can help retirees ensure their families’ future comfort or earn extra monthly income.
Be sure to consider these points before buying a new home in which to spend your retirement years.
Leaving a Legacy
Retiring well means more than just having enough to keep you and your spouse comfortable. A good retirement includes the ability to leave something behind to keep your family growing strong when you can’t be with them. Retiring parents might buy a second home for many reasons.
- Is your current home just too big? Consider buying a second, smaller home to live in. Use your large family home for big family gatherings like weddings and special holiday events. You can also use it as a guest-house, a vacation home for your adult children, or as a storage for all your family’s precious treasures.
- The fluctuating economy is making it difficult for young families to get a good start. A 2013 study found that 36% of adults between the ages of 18 and 31 lived with their parents. Retiring parents can help their adult children reach independence by purchasing a large property they can share if it ever becomes necessary to do so.
- Retiring parents with special needs adult children may want to buy a new home that features a detached dwelling or “mother-in-law” quarters. The adult children can learn to live independently while you are still around to guide them. When you are gone, the designated caregiver can move in and your child can continue living in the comfort they’ve come to know.
Just because you aren’t working doesn’t mean you can’t make a little extra cash. You can use additional properties to boost your monthly income so you can afford to have all the fun you deserve.
- Consider downsizing into something more suitable for your needs. Rent out your large family home on a monthly basis or possibly offer short-term rental services like Airbnb. You may decided to contract with a property management service to handle repairs, collections, and all the other landlord duties. Your property will be maintained and available if your plans ever change..
- Retirement is the time to do what you’ve always wanted to do with your life. You might purchase a small property to house your new business. Or upgrade your current home to one that has plenty of space for your woodworking, papercraft, metal art, or whatever hobby you want to convert into a paying enterprise. You might even look for properties that have unique features you can use to make your work easier. A screened porch very well might be the perfect place to paint.
- You may even consider easing your yearly tax burden by donating your existing home to a local charity. You will enjoy generous tax deductions while giving back to your community. Since the home still belongs to you, you can leave it to whomever you like in your will. This is a great way to preserve wealth for your family while also reducing your expenses.
Buying a new home during retirement can help seniors achieve the right balance, help their loved ones, and even increase or protect their wealth.