It may seem odd to some people that seniors should be buying a new home at this stage of their lives, but there are many good reasons for doing so. Perhaps they want to downsize since all those extra bedrooms and living space won’t be required anymore. The kids have long flown the coop and have families of their own now. Even when they visit, they rarely spend more than a night or two.
A single guest room plus the master bedroom would be sufficient and require a whole lot less care as well. Also, it may be a seller’s market, and no better time to get the most considerable ROI on their home of many years. But, please make no mistake about it. Your home is probably the most significant investment you’ll ever make, and so that Return on Investment everyone talks about is now going to give you a bit of cushion for your golden years. So, with that in mind, and as you begin looking around for a suitable new home, here are some essential things to keep in the back of your mind.
How Will You Pay?
You have a couple of choices here. You can either use the money from the sale of your current home to pay for the new home outright, or you can get a mortgage loan on your new home. If you can afford to pay for your new, smaller home in total, that would typically be the best option because you will not be paying what amounts to interest only in those first few years after closing. One thing to be aware of is that even though you may not be required to purchase a good homeowners insurance policy if you don’t have a mortgage, homeowners insurance will protect your investment, so it is an absolute must.
If You Are Relocating at a Distance
How far from your current location do you plan to relocate to? Are your grown children living in the area, or are you joining other snowbirds and moving your residence to the Sunshine State? If you will be going any great distance, it is probably better to hire movers than to rent U-Haul trucks to be driven by a family member. A full-service moving company can help you pack up the house, load the truck, and then unload and unpack at your new destination.
Senior Amenities in the Area
If you are not looking for a home with a specific location in mind, then you will want to check out senior amenities in the area. Sometimes, you buy a new home to be nearer to your adult children and grandchildren. In this situation, senior amenities and activities will pale compared to being close to your family.
There is much to consider, but don’t feel you are locked into a home because you own it free and clear. If you want or need to move, then that is perfectly okay! Whether you are 39 like Jack Benny always was or 79 like your ‘older’ brother really is, you have every right to choose where you want to live. Do you want a new home? Go for it! You deserve it.
Thanks to leisurecare.com for consulting.