After a lifetime of hard work with a 40 hour work weeks, retirement is very appealing. There are several factors to consider as you plan this next chapter including a retirement home. While some individuals will remain in their first home, others may be planning to sell and build a new abode. Here are six things that may be forgotten during the planning process.
Stand-Alone or Community
A common oversight is whether to build a stand-alone home on property you purchase, or within a community that has pre-determined lots. Depending on the location, the community option, like Sunshine Retirement Living, has a plethora of amenities outside the front door. This includes individuals of the same age and centers where neighbors gather for functions with pools and dining halls. In addition, some offer wellness programs that foster independence.
When should the building start?
Timing can affect the bottom line in building a retirement home. Markets are continually changing. Land is generally less expensive than existing homes with land. The ideal time might be before retirement actually starts, because it averages two years to find the perfect spot. In addition, check for permit requirements and environmental reports for new property building projects that also add to cost.
Cost Effective Ways to Pay
Miscalculations on how to pay for your new retirement home can add a burden. Several options are available to make this a net gain. For example, consider using the liquid cash in a retirement account. This eliminates any future payments from the fixed amounts of pensions and social security. A home equity loan at a low interest rate could also work. However, expect stringent terms that are common for second homes.
Once checklist items are researched, building will move forward quickly. Part of the planning should have addressed the placement and use of each room. Without careful forethought issues can arise, but understanding your new lifestyle will mitigate them.
Everyone wants to retire in an area where there are loads of activities. Staying busy with hobbies such as fishing, skiing, and hunting can dictate the place you retire. In addition, ensure shopping, medical facilities, restaurants, and hotels are within a reasonable distance. This will accommodate your needs as well as visitors.
While property taxes change over time and are tied to market conditions, trends over decades will bore out what averages to expect. Areas with a history that fluctuate wildly will be difficult to manage on a fixed income. During the research phase, include a tax review on the checklist for clear expectations.
When the time comes to reward yourself with a retirement home, make sure to carefully follow this list. Each has options to efficiently use your finite resources. Include activities and programs that fit the new lifestyle while maximizing every moment of the golden years.
About the author: Rachelle Wilber is a freelance writer living in the San Diego, California area. She graduated from San Diego State University with her Bachelor's Degree in Journalism and Media Studies. She tries to find an interest in all topics and themes, which prompts her writing. When she isn't on her porch writing in the sun, you can find her shopping, at the beach, or at the gym. Follow her on twitter: @RachelleWilber