Feb 14, 2023 | Real Estate
Are you thinking about moving in the near future? If you are approaching your golden years, you might be able to move into a community specifically designed for people 55 years of age and older. What are some of the top reasons to consider this type of community?
No Maintenance To Worry About
One of the biggest headaches of owning a home is the maintenance that goes along with it. As you get older, you might find that the maintenance gets more difficult, but in a 55 and up community, you might not have to worry about this. Many older communities have teams on staff that will handle the maintenance for you. This could include not only the landscaping but the interior maintenance as well.
A Variety Of Amenities Are Often Available
You might also get access to a variety of amenities in a 55 and up community. For example, if you like to go to the gym, there might be one in your neighborhood. Or, if you don’t want to cook, there could be a dining hall or restaurant in the neighborhood. Of course, you can also live your life in peace, as children are typically not allowed to live in the community.
Homes Designed To Help You Age With Grace
Finally, many of the homes in a senior living community have been designed to help you age with grace. There might be railings throughout the house to help you keep your balance, and there probably won’t be as many stairs in the home. The floors throughout the house might also be designed with a bit more grip to help you keep your balance and prevent falls from taking place.
Consider Moving To A 55 And Up Community
These are a few of the most important points to keep in mind if you are considering moving to a community for people 55 years of age and older. They might not be right for everyone, but they do come with a host of benefits and amenities. Consider taking a look at some of the communities in your area, and partner with an expert who can help you find the right house for your needs.
Nov 16, 2022 | Real Estate
As you get closer to your retirement age, you should try to discharge as much of your debt as possible. Unfortunately, many people close to the age of retirement still have a significant mortgage balance they need to pay off. What are some of the top reasons why you should pay off your mortgage before you retire?
Your Portfolio Might Not Generate As Much Interest
You may have a very low rate on your mortgage, which means that your money is better served in the stock market; however, as you approach the age of retirement, your portfolio might not generate as much interest because you are shifting more of your assets into less risky investments. As a result, you might want to pay down your mortgage faster, as the interest rate between your mortgage and your portfolio is no longer as large.
Free Up More Cash
You should also try to pay off your mortgage because you will free up more cash. You want to enjoy your golden years, but if you are still spending thousands of dollars every month paying off your mortgage, your money will not go as far. You may not be ready to tap into those retirement accounts just yet, so you can generate more cash by paying off your mortgage now. Try to pay off your mortgage before you retire to maximize your golden years.
Tap Into Your Home Equity Later
Do not forget that your house can also be a very important retirement asset. If you are concerned about running out of money and your retirement account, you can tap into your home equity as an extra source of cash; however, what if you still have a mortgage on your house? You might not have as much equity to use. While you are still making money now, you should try to pay off your mortgage.
Pay Off Your Mortgage Before You Retire
Clearly, there are a lot of reasons why you should try to pay off your mortgage before you retire. When you retire, your income may drop significantly, so you should try to pay off your mortgage while you still have the flexibility to do so right now.
Sep 13, 2022 | Real Estate
If you plan on retiring soon, you are probably looking at a few options that can get you over the hump. You are probably excited to start a new phase of life. With a record number of people closing in on their retirement age, many are starting to assess their resources to make sure they have enough money to last them for the rest of their lives. If you already own a home, you might be able to tap into your home equity to help you fuel your retirement.
Your Home Has Probably Gone Up In Value
Your house is an investment and now is your opportunity to capitalize on that investment. There is a great chance that the value of your home has significantly increased since you first bought it. Furthermore, if you have been in your house for a long time, your mortgage may have been completely paid off. This means that just about all of your home’s value could be yours to keep. Your house could be worth hundreds of thousands of dollars, which you can put towards your retirement.
How To Use Your Home Equity For Your Retirement
Of course, you still need a place to live, but there are ways for you to tap into your home equity for your retirement. If you have children who have already moved out, you might be ready to downsize. As a result, you could sell your house and use the cash from the sale of your house to purchase a smaller home. Then, you can use the money left over to fund your retirement. It might not be enough to cover your retirement completely, but it could be enough to get you over the hump if you are wondering when you can retire.
Consider The Implications Of Selling Your Home
When you sell your home, there is a chance that you may have to pay taxes on the capital gains stemming from the value of your home. On the other hand, you might be able to shield some of those gains if you use the money to buy another house quickly. You should reach out to a professional who can help you understand the tax implications of selling your home.
Aug 5, 2022 | Real Estate
If you plan on retiring in the near future, you might be thinking about moving. The kids might be grown, and you might not want to take care of such a large house. If that is the case, you should consider downsizing. When you downsize your home, you trade in your larger home for a smaller one. What are some of the top reasons why you should do so?
1. Bulk Up Your Retirement Account
The first reason why you should downsize is that you will free up more resources you can contribute to your retirement accounts. If you have been in your house for a long time, there is a great chance that you have paid off almost the entirety of your mortgage. Furthermore, your home may have even gone up in value by tens of thousands of dollars. Therefore, when you sell your house, you should receive most of the proceeds from the sale. You can use the proceeds from that sale to buy another house with cash and still have money left over to add to your retirement account.
2. Reduce Your Overhead Expenses
You can also reduce your overhead expenses if you downsize your home. Your home insurance and property taxes should go down if you purchase a smaller house. You will probably have to spend less money on utilities, routine maintenance, repairs, and upkeep if you trade in your larger house for a smaller one.
3. Find The Right Location
If you decide to downsize your house, you will also have more flexibility regarding where to live. It is easier to fit a smaller house in an ideal location than a larger one. If you are willing to purchase a smaller house, you should have more options available to you, and you can find the perfect location for your retirement.
Consider Downsizing In Retirement
If you are getting ready to retire soon, you should consider downsizing. This is a great opportunity for you to free up a bit of extra cash for retirement and find the perfect location for your home. Consider taking a look at some of the houses available in your local area, and don’t forget to reach out to a professional with any questions.
Jan 27, 2022 | Real Estate
Many people dream of retiring one day, and there are numerous assets that contribute to that retirement goal. Social security, pension plans, and savings accounts have traditionally provided assets people use to enjoy their retirement; however, this traditional plan ignores one of the most valuable assets. Owning a home can contribute significantly to someone’s retirement goals; however, it is important to have a firm plan in place to make those retirement dreams come true. There are several ways a home can play an important role in that plan.
The Value Of A House Traditionally Increases Over Time
Many people who purchase a home take out a fixed-rate, 30-year mortgage. Then, if they stay in their house long enough, they might have it completely paid off by the time they retire. When someone owns a house outright, they can sell it and use the value of that home to fund their retirement or purchase another house. If they don’t feel like moving, they might take out a home equity line of credit to generate more income and fund their retirement.
Too Many People Overlook The Value Of A Home
Even though owning a home is a great way to build wealth, a lot of people overlook the value of a home with respect to retirement. Many people are taking on much more debt than they did in the past. This is making it more difficult for people to purchase a home. As a result, it might take longer for someone to pay off their home, making it harder to retire one day. That is why it is critical for people to think about purchasing a house as early as possible. That way, they have more time to build their assets, compound their wealth, and pay off the home.
Retirement Dreams Require Diversification
Ultimately, those who dream of retiring one day need to focus on diversifying their assets. Even though traditional retirement plans are helpful, it is also critical to think about the value of real estate. It can make a significant difference to the totality of a retirement plan.
