If you are a senior with plans for relaxation and leisurely days throughout your retirement, it’s time to start planning. While many of your contemporaries may be talking about downsizing during their golden years, that’s not always the answer. Sometimes, the answer is to find more space and use each square foot to live your best life.
Funding Your Future Plans
An obvious first place to start when you want to look into buying a larger home is your savings or current home equity. But, seniors may also purchase a new property with as little as 40 percent down utilizing a home equity conversion mortgage. Your Carefree Retirement Funding agent can walk you through the process and explain the pros and cons.
Bridging The Gap
Unfortunately, many retirees find that, even without a mortgage, money can be tight. Further, boredom can quickly set in. To give yourself a sense of purpose and earn some extra cash, consider turning your new home into a workspace. You can create a supplemental income stream by doing things you love. Take precautions here, however, and form an LLC for your business once you start collecting money. Although it involves very little paperwork and you can use an inexpensive online formation service to create a business entity, there are unique rules, which vary by state. Your LLC will help to keep your business separate from your home.
A large home might feel counterintuitive, especially if you are looking to lower your monthly mortgage and financial obligations. But, consider your goals.
When you are looking to spend more time with friends and family, a larger house with plenty of outdoor space to entertain will be an “open invitation” for them to visit you. This can reduce the amount of money you spend on travel and lodging. Another great reason to invest in larger property is to pursue hobbies, such as gardening or photography, that might be difficult in a planned community with an HOA and small lawns. You can even dedicate some of your expanded living space to earning an income, which may help offset any additional expenses you might take on in property taxes or monthly utilities.
City Vs. Country Living
Typically, you’ll find bigger homes, larger lots, and smaller prices by moving to the country. There are things to consider here, and there are pros and cons to rural life. While living away from your neighbors means lots of privacy, it also means you are further from help if you need it. Most rural communities are much closer knit than their urban counterparts but they lack amenities, such as senior centers and shopping malls, that might promote a more active and social retirement. The Movement blog asserts that a reasonable compromise is to consider the suburbs. While you might not be able to afford a sprawling estate, you can likely find more for your money and at least have a large lawn and plenty of bedrooms and play areas for the grandchildren.
Buying a larger home doesn’t have to be a daunting possibility in your retirement. When you evaluate your desires, you may just find that more space is exactly what you need. Whether you want to grow your own vegetables, pursue a part-time income opportunity, or simply entertain your loved ones, a larger home will give you more room for everyone to roam.
Carefree Retirement Funding is there for each client to help retirement hopefuls utilize their home equity to live their best to life. For more information, contact us today at 772.212.1450.
Article by Lisa Walker