If you are going to be in the market for a retirement home in the next 10-15 years you might be asking yourself When To Buy Your Retirement Home? If you don’t have the cash to pay for the home in full you are going to need to take a mortgage out on the home in order to lock it up. With interest rates being near historic lows, it might be the time to stretch it and go after your dream. If you can’t support both mortgage payments, you may even want to entertain the idea of renting out the home in order to offset the costs of owning the home.
If you have answered the question When To Buy Your Retirement Home and you decide that now is the time and you are confident you are going to rent out the property until you can move in you are going to need to keep a few things in mind. If you made this decision, you have now become a landlord and depending on the demand for your property you can choose between short-term and long-term rental clients.
If you want a more hands-off approach, the best thing for you might be a long-term rental where you can have a family in your home who is looking to stay for multiple years. This makes your job as a landlord a lot less stressful as you don’t have new people coming in on a weekly basis and you don’t have so much paperwork and preparation to be done on a daily basis. However, if you are in a tourist destination that demands top dollar for the rentals, you might opt for the week to week rentals.
This might be a great idea, but keep in mind your costs go up as you will have to hire a management company to prep the house after everyone checks out and not to mention the credit card fees associated with taking so many bookings. The thought process here on When To Buy Your Retirement Home hinges on how much of the mortgage you can offset with the rental income and if this set-up is right for you.
Listen, knowing When To Buy Your Retirement Home is a tricky proposition and you always want to make sure you are 100% committed to your decision so it might not hurt to take the advice of others and a financial planner to make sure you aren’t taking on debt prematurely before you get to retirement. Everyone has dreams of their perfect retirement home, but you don’t want to bite off more than you can chew and end up with a nightmare.
Nothing is more satisfying than working hard your entire life and for your hard work and savings to pay off. If you are in the market for a 2nd home mortgage, please reach out to me ASAP and we can go over the scenarios with you. You can reach me at 888-900-1020, by email at firstname.lastname@example.org, or visit my website for further info at www.loanconsultants.org.