Buy Your Retirement Home Now.
If you’re planning to move when you retire, it might make sense for you to buy your next home now rather than wait, especially if you plan to stop working in the next five years. Whether you are looking to move to another state or just a few towns away, buying your retirement home before you need it offers financial advantages. Here is a look at five reasons to consider looking at real estate for your retirement years now.
1. Easier to Obtain a Mortgage
Most likely, you’ll find it easier to obtain a mortgage before you retire because you’ll still have a steady income from your employment. Since lenders tend to evaluate the amount of debt you have versus your income, your numbers are probably going to be more favorable now rather than when you retire. As a result, you’ll be able to obtain a larger loan, and do it more easily. If you wait until you retire, you might have to rely on the sale of your existing home in order to afford the real estate property you want to buy.
2. Time to Pay Down Your Loan
Buying your Retirement Home before you retire allows you to pay off your debt more quickly, a strategy that can help to free up financial assets in the future. In addition to being able to make your monthly payments, you might even have enough funds to accelerate your repayment of the loan by putting additional money toward each payment. Even if you intend to sell off your current home when you retire, and use the proceeds to pay off your new mortgage, you’ll most likely come out ahead with extra money to use as you see fit.
3. Ability to Increase Your Income
When you purchase a Retirement Home, you create the option to rent it out for a steady flow of income that can help you pay off your mortgage. Alternatively, you can put the rental income aside in a retirement account, save it for renovations on your new home, or use it for other expenses.
4. Current Low Interest Rates
The Federal Reserve is more likely to begin increasing interest rates sooner than later,
which means the window for record low mortgage rates is closing. The important thing to remember here is that the Low rates keep your borrowing costs and monthly mortgage payments low for the life of the loan.
5. Home Value Increases Over Time
It is a well-documented fact that home value increases over time. Although real estate value is cyclical, it tends to increase over time than decrease.
If you are thinking about buying real estate for your retirement years, you might want to start looking ahead of time. Buying before you retire allows you to get a mortgage more easily and borrow a larger sum of money than you could upon retirement. The financial benefits of purchasing a second home while you are still employed provide excellent reasons to consider doing so.
To find your home value in today’s market, contact Mona Koussa today or visit ehomesurf Instant Home Evaluation page.