Heralding a substantial shift in living, lifestyle and priorities
As you approach the golden years of retirement, you may find yourself contemplating a change in your living circumstances. Retirement often heralds a substantial shift in living, lifestyle and priorities, giving retirees the freedom to indulge in passions and interests that their working years may not have permitted.
Retirement often paves the way for extensive travel experiences. Whether it’s reuniting with loved ones across the country, discovering new cities or embarking on global adventures, the opportunity to explore can be one of the most thrilling aspects of this stage in life.
Retirees frequently find themselves in homes that may feel overly spacious or vacant once their children have flown the nest. Opting for a smaller, more manageable property can liberate finances and decrease living costs, enabling retirees to invest more in their leisure pursuits.
Buying a property pre-retirement
Have you ever pondered the prospect of buying your retirement home right now? There are some undeniable benefits to securing your future abode during your working years. Firstly, the stability of your employment and consistent income might make qualifying for a mortgage easier.
Secondly, suppose you’re not planning on moving into this property full-time until retirement. In that case, there’s a lucrative opportunity to earn extra income. You could consider renting out the property or temporarily operating it as an Airbnb for part of the year. This strategy could provide a steady stream of passive income to help offset the cost of the new mortgage.
Buying a property post-retirement
Conversely, delaying purchasing your retirement home might be more advantageous until you officially retire. Acquiring an additional property too soon could potentially postpone your retirement, as the added financial stress could hinder your ability to save efficiently. Furthermore, you’ll need to consider that your requirements are likely to evolve after retirement compared to before.
While issues such as access to healthcare and the number of stairs in a property may not be at the forefront of your mind now, they could become significant considerations later on. If you’re still undecided about your ideal retirement location, wait until your future plans are more firmly established before investing in a property where you’ll spend a substantial portion of your time.
Several factors come into play when choosing a retirement home, with size being just one of them.
Here are some key considerations to bear in mind:
Location and lifestyle
Consider your desired neighbours and the amenities and facilities you’ll require. Proximity to family and friends often takes precedence, but remember to factor in healthcare, shopping, leisure facilities, green spaces and public transportation. Plan for a future where driving might become more challenging.
Property type
You now have an unprecedented array of options. Beyond traditional homes, specialised housing options exist for those over 55, such as retirement villages and shared ownership schemes. Single-storey properties may be a prudent choice as you age. Consider modern homes with warranties, energy efficiency and low maintenance requirements.
Room requirements
Evaluate the number and type of rooms you’ll need. Consider space for visitors, a home office or hobbies beyond your daily living needs. Even if you’re not working, having a designated area for personal administration can be beneficial.
Financial considerations
Evaluate your financial standing and determine whether you’ll pay for your new home outright or if a mortgage will be necessary. Consider options like retirement interest-only mortgages or equity release ‘lifetime mortgages’. Consider ongoing costs such as service charges, maintenance and repairs. Consult a legal expert to ensure your property can be passed on efficiently and check for any selling restrictions.
Retirement is an exciting time of new beginnings and choices. By considering these factors, you can make an informed decision that caters to your needs and enhances your retirement lifestyle.
Want to discuss how to purchase your perfect retirement home?
If you require further information or guidance, don’t hesitate to get in touch. Our team of experts is here to help you navigate the journey to your perfect retirement home. To discuss your options, please contact the team.
Please note: a mortgage is secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. For Later Life Mortgage options, to understand the features and risks, always obtain a personalised illustration.
