Living a long, healthy life offers the benefit of reaching many significant milestones and one of those, as your older years approach, is buying the home you plan to retire in.
Whether you’ve been operating your own business, or working in someone else’s, downsizing from the home of your working years to a home that you plan to live in during those times when you have more freedom to enjoy your home, without the pressure of making a living, should be a golden time in your life.
Typically, the home you want to retire to is very different from the home you’ve enjoyed up to that point – and it might mean transitioning to a new location to enjoy a tree change or sea change lifestyle away from the city. In some cases, the opposite might be true, as retirees who have spent the majority of their lives in a regional centre or outer suburb make a decision to experience life in the inner-city, where the cost of owning and operating a car can be given up in favour of a handy public transport system and the joy of exploring the sights on foot.
Downsizing Towards Retirement
Without children to accommodate, your retirement property can be smaller and perfectly suited to your lifestyle – without worrying about the needs of too many others.
Thankfully, there are a number of options available – with something to suit different tastes and lifestyle goals.
From semi-detached units to self-contained villas and even high-rise apartments – what’s always important is safety and security. The rest of the decision-making is a personal one based on individual desires and, of course, finances.
Investment or Pleasure? – Choosing The Perfect Retirement Property
Real estate is an investment, but exactly how you need each new property purchase to perform for you depends on your need for cash flow and your plans for long-term financial growth and wealth creation.
If you are years away from your retirement and in a position to buy an investment property now, the earlier you buy means you can enjoy the best possible chance of accessing the property at the lowest possible price. As the rise and rise of the local property market shows, buying property now, instead of waiting 5-10 years when you’re ready to retire, could mean a substantial price difference.
Is a Retirement Village Right For Me?
It’s a question worth asking yourself and one that you should also discuss with your family and trusted financial advisors.
For many people on the edge of retirement, the idea of buying into a retirement village can seem like a convenient option but it’s important to understand what that means for your investment. Those seemingly simple arrangements may seem nice at first but always do your research and talk to your accountant or financial planner to ensure that you understand potential hidden costs and can compare it to the growth potential of purchasing more traditional property.
Buying into a retirement village is a decision that can be positive for lifestyle but negative in terms of building property-related wealth. Figuring out what you need to ensure your retirement years are happy and secure is a key step before you buy.
Remember – retirement should be a time where you stress less and reap the rewards of a lifetime of hard work and planning.
Consider all your property-buying decisions carefully and assess your options thoroughly to help you make the wisest decision about your money.