Pros of Buying a Home in Retirement

Purchasing a home during your retirement years can offer several benefits.

Opportunity to Gain Equity

Putting your money into a home could potentially let you gain equity for your retirement years. Having your home as an asset could be helpful if you need collateral, decide to take out a reverse mortgage or want to sell later at a profit.

Ability to Downsize

You may decide you want to downsize later in life. You might sell your current larger home in favor of something smaller and more manageable.

Increased Accessibility

A different home may provide better accessibility as you age. Perhaps you live in a two-story house and mobility issues make it difficult to access the upper floor. To meet your needs, you might opt for a one-story house or one that's wheelchair-accessible.

Customization Options

Owning your home allows you to customize your living space. You can do anything from small updates such as painting to tackling a complete overhaul to make your new home just how you want it.

Cons of Buying a Home in Retirement

It's also important to weigh the cons of purchasing a home after you retire. Here are some things to consider.

Higher Mortgage Payments

You could potentially end up with higher mortgage payments if you don't have enough cash or equity in your current home to buy a new house outright. This could be a concern during your retirement years when your budget is tighter.  

Increasing Costs

Even if you don't have a mortgage on your home, you have expenses like insurance and property taxes. These costs could increase over time, potentially putting a strain on your budget.

Upkeep Responsibilities

Owning a home means you're responsible for all the upkeep and repairs. As you age, completing repairs yourself often becomes more difficult and could even put your safety at risk. You might also face unexpected bills for needed repairs.

Accessibility Limitations

If your new home isn't fully accessible, it may not accommodate your needs over the long term. In the future, you may have the expense of making accessibility modifications to accommodate the use of a walker or wheelchair.

Lack of Assistance

If you live alone, you may not have access to a support network or have help available if you need assistance with daily tasks or personal care.

Limited Socialization

Living in your own home may limit your opportunities for socializing and companionship.

Considerations When Considering Buying a Home

Finances are often a major factor in a decision to buy a home in retirement. Consider how much money you have to invest in a new home, and get an accurate estimate of what your mortgage payment might be to ensure it fits within your retirement budget. Don't forget to factor in the potential costs of upkeep and unexpected repairs.

The area where you want to live can determine if you can afford a house that meets your needs. The location of your home can also impact its future resale value.

Your physical and emotional needs are another consideration. If your mobility is limited or you need help completing routine daily tasks, an assisted living community may offer the support you need. You might also prefer to move to a senior living community if you're seeking companionship and activities to keep you engaged and enjoying your retirement.

Other Options for Your Retirement Years

There are other options to consider if you want to move from your current home. You could rent a house or apartment. Although renting doesn't allow you to build equity, you also don't have to worry about upkeep and repairs.

Moving in with a family member is another option. While doing so can provide you with a built-in support network, living with a loved one may not be feasible due to where they live, the amount of space they have or the relationship you have with them.

Making a move to a senior living community like Cambridge Court in Kearney, Nebraska, is an option that offers a carefree living environment and a sense of community. You have support on hand to help with household chores or activities of daily living when needed. Plus, you're surrounded by fellow residents and have plenty of activities to participate in and amenities to enjoy. Budgeting may also be easier since you have a predictable monthly cost that covers all your living expenses and you're not responsible for maintenance or repairs.