When some people retire, they try to avoid making any big changes in their life. Money is tight, but retirement is also a time to relax and settle into some hobbies and travel opportunities. Then why are so many seniors selling their old home and buying a new one?
It’s because there are a lot of advantages to buying a home as a senior. In fact, more and more people are finding home ownership beats renting even during retirement. Here’s why.
Image source: Pixabay
1. Why Buying Often Beats Renting For Seniors
Renting vs. buying is always a tough choice no matter how old you are. Home Advisor has an excellent list of compelling reasons why even seniors should purchase a new home. Some of these include:
- Home prices are going back up, so buying now gives you a strong investment.
- Interest on your mortgage can be deducted from your taxes.
- Owning a home brings stability and peace of mind during retirement.
- Interest rates are still low.
- You can find a new community better suited to your life as a senior.
The trick is finding the right market. In high-value areas like San Francisco or New York City, a new home can be too expensive to make it worthwhile. Instead, talk to a local real estate agent and ask what markets are great for home buyers. If you cannot avoid a high-value area, ask about neighborhoods that are changing for the better, as you can find lower-priced gems there.
2. Finding That New Place
Image source: Pixabay
Once you’ve decided to buy a new home, the fun part begins — finding your new place! This can be a lot of fun, but it can also get confusing as there are so many choices. Grandcare.com has a nice page listing some tips for seniors looking for the perfect home, such as:
- Look for different kinds of places like condos and patio homes. Not only are they usually cheaper than a single-family home, they often have amenities like pools and tennis courts.
- Make sure the home you love has been taken care of by the current owners. You don’t want to spend all that money moving just to pay costly repairs.
- Compare the size of your old home to the new one. You may need to downsize your belongings to fit.
When it’s time to move, you should consider hiring a senior move manager. These are professionals specifically trained to help seniors move. From deciding what belongings to donate to packing up, these managers can turn a problematic, stressful time into one that’s easy and efficient.
3. Paying For It All
Finances can be tight during retirement, but there are ways to pay for a new home. The typical way is through a mortgage. Thankfully, rules have changed to make it easier for seniors to get a mortgage. You can use income from retirement assets to help qualify for a home loan.
If you own your current home outright, then you have another great option: a reverse mortgage. Also known as a Home Equity Conversion Mortgage (HECM), this converts the value of your home into cash. You don’t sell your old home. Instead, you get a loan based on its equity. For many seniors, this allows them to purchase a smaller second home near family or good weather.
4. Start Looking For A New Home Today
Many seniors are now buying a home during retirement. That’s because there are a lot of benefits. Whether you’re a first-time buyer or you already own a house, start looking today at your options. Speak to a real estate agent about the right market, then look into mortgages or reverse mortgages to pay for it. Your new home can give you just what you want in retirement: security and stability.
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