Not really and not fun! If you are a buyer considering purchasing in the Metro Atlanta area- that's great and we are happy to find you a property! However, there is something you should know. It
You Might Want To Buy Your Retirement Home Before You Retire
If you’re considering retiring in the next 8-10 years then you might want to start considering your retirement home! If you buy it early there can be significant financial benefits. This is especially true if you’re planning on getting a mortgage.
By doing so early you’ll be taking advantage of the current low-interest rates as well! 30 year fixed mortgages have dropped to approximately 3.32% currently. Not only are there appealing saving options but there’s considerable financial benefit to putting money towards your retirement home while you’re still employed. So let’s jump right into some of the most important reasons you should consider buying your retirement home so far in advance.
Getting Approved For A Mortgage
When your loan application is being evaluated your debt-income ratio will be a very important aspect of that evaluation. This ratio will obviously be in a better position while you’re employed. Which means, you’ll have an easier time applying for your mortgage while you still have areliable income.
If you waited to apply for the mortgage until you retired, it’s possible that you’ll minimize the size of the loan you could potentially apply for. Also, you can start chipping away at that mortgage ahead of time and take less of your allotted retirement income out of your pockets. Essentially, you’re getting well ahead of the overall financial impact a mortgage can have.
Odd’s are when you finally pick your retirement home you’ll be looking to make some improvements. If you’re purchasing a newly built home or building your home from the ground up however, you can ignore this section.
It’s definitely recommended that you set yourself a budget for the renovations you might have in mind. Referring back to the first point made about securing your mortgage early. It’s also very beneficial to have a steady income from working full time during the renovation process as well. It’s always possible to uncover a random setback and this steady income can help you deal with it accordingly.
Chipping away at that mortgage
Like I said earlier, beginning to pay off your mortgage early will put you well ahead of the game. The ideal goal is to obviously be debt free during retirement. For that very reason, some may choose to rent when they retire. However, if you’re choosing to become a homeowner, the sooner you can start paying off that mortgage the better!
Not only are you getting ahead of the game initially but you could make additional payments as well. Getting ahead 8-10 years on that mortgage is one thing but being able to possibly afford additional payments while you’re employed? You could cut your mortgage to a 15-year mortgage by the time you’re ready to move in.
Long term plans
Budgeting your living expenses for retirement can be rather unpredictable. However, if you already have your retirement home set aside you can get a very good idea of what it will cost on a monthly basis to live there. So owning your home in advance gives you years of planning in terms of financial allocation.
Finances willing, if you can carry two mortgages at once you have the opportunity to rent out the house those 8-10 years before you actually want to move in. Essentially allowing tenants to cover the cost of the mortgage while you’re waiting to retire. Or you could allow yourself to retire early by utilizing the additional income from your potential tenants.
Additionally, you should look into the potential tax benefits of making it a rental property. There are a number of benefits to renting out your additional property before you actually decide to move in.
If you have any more questions regarding your future retirement home don’t hesitate to ask! Your retirement should be treated with careful planning. Living in comfort financially should be a very manageable task for you to accomplish.
Do you want a competitive edge when buying or selling a home in your market? How would you like a home sale guarantee on your listing? Do you like to find deals on homes that no one else knows about? Would you like to get free LIVE video tours of homes as soon as they hit the market? These are just a few of the benefits you get when you work with me to buy or sell a home! Be sure to visit my Facebook page BobbysDealOfTheDay.com right now to find the best buyer and seller information and to see sample video tours of the hottest deals in Cobb and Cherokee County!!
Or You Can Talk to Bobby Today At: 770-714-7452 to learn how!! (Call or Text!)
Latest Blog Posts
Atlantic hurricane season: June 1 through November 30. Wildfire seasons vary, depending on region. Earthquakes have no season – they strike without warning.Depending on where you live, natural