If you are retiring, you probably own a home and are about to finally see the fruits of the 401k you’ve been diligently nurturing for decades. So, you will likely have plenty of money to put towards the luxury home of your dreams and live the retired life in style and comfort. While it seems like you are going to afford it easily, retirement can be a long time, and there are important factors that will play into whether or not you can afford a luxury home in the long run.
Negotiating a Mortgage for your Luxury Retirement Home
30-year mortgagesare the most popular because they carry the lowest monthly payment. However, retirees should look to the 15-year loan. A lot can happen in 30 years, and as we age, we tend to have increased expenses for medical treatment and more. In your 80s and 90s, the last thing you want to worry about is whether or not you can pay your mortgage. So, you should really only buy a lavish home in retirement, if you can afford the shorter loan.
Aging in to your Retirement Home
Your dream home for retirement right now may include a gorgeous staircase, massive kitchen with rich, wooden cabinets, and a swimming pool, but over time, those same dream features might become severe hindrances to aging in place. So, when determining whether or not you can afford a luxury dream home, make sure to factor in the costs of remodeling as you age. You may need to install an alternative way to travel upstairs, such as a chair lift or elevator. You may need to renovate the kitchen to lower cabinets and counters. And don’t forget the cost of services, in case the home cleaning and maintenance becomes too strenuous to continue to do yourself. This could include a landscaper, pool technician and maid services.
Calculating Your Mobility of Your Retirement Home
Lavish homes tend to be relegated to certain neighborhoods, many of which are out of the way, favoring privacy over convenience. As we age, we may not always be able to drive an automobile to the store, church, or to meet our friends for brunch. So, when factoring in whether or not we can afford the lavish home in retirement, we must consider reduced mobility and transportation. Factor in the costs of a driver or public transportation when you think of your lavish home. If you can afford it, you can afford that dream home.
Learn More About Purchasing Your Luxury Retirement Home
Buying the home of your dreams in retirement is all about careful planning. If you can calculate the costs of your home evolving with you as you get older, and don’t foresee any financial troubles, then you are more than ready to enter the next phase of your life in a luxury home. Learn more from the expert real estate agents at the Northrop Team today.
*Please consult your financial planner for more information about saving for retirement.