When looking for a retirement property there are probably a million and one things that start racing around the average persons head.
Will I stay local or move away?
What if the property needs work?
How will I afford it?
If you wait until the day you retire to find out the answers to these questions then you’re setting yourself up for a stressful start to your retirement. Not ideal at all!
Starting the search early, whilst still part of the workforce can help reduce the uncertainty both financially and personally.
1. The Mortgage
One of the best reasons to buy your retirement home whilst still working is that you’ll better qualify for a mortgage. Your debt to income ratio is likely to be in a better position whilst still in full time employment which is, in turn, likely to mean that the amount you can apply for will be less restricted.
You’ll also have the added advantage of being able to start repayments early, meaning more of your retirement fund can go towards everyday living.
If you wait until you retire, you might find that your mortgage options are somewhat limited. Also paying off a mortgage using your retirement fund means less money for your actual retirement.
2. Cash Flow For Renovations
Once you’ve purchased your retirement home you may find that it needs a little work to make it feel truly like home. If you’re still employed you may find it easier to set aside some of your income to put towards renovations.
Not only will this help you deal with any potential unexpected work that may crop up. But it will also save valuable time. All of the above means you’ll be able to spend more time and money on the things that matter to you when you finally retire.
3. Better Budgeting & Reduced Stress
Retirement should be about taking it easy and spending quality time with the important people in your life, not about stressing over finances. Planning ahead and having your retirement home bought in advance is not only one less thing to cause worry, but you’ll be better able to budget for everyday living expenses and have more available funds at your disposal.
Not sure what to look for in a retirement home? Read our guide on how to choose the correct property for you. Alternatively, why not take a look at what the Elms can offer at our upcoming open day on June 15th?