Your Retirement Home
Have you thought about your retirement home? What you will want or need in your home that will make your retirement more comfortable? Many baby boomers need to take into consideration many factors when selecting the ideal retirement home. Ben Young, CEO of Ramar Construction, Home Builder of the Year 2004, stated “With the changing demographics, there will come a change in the home style preference. Empty nesters will be willing to trade square footage for a single level structure that is easy to maintain and suited to their lifestyle.” There are many factors for you to consider when preparing yourself for this transition.When making this major decision, you may want to account for the following: • What accessibilities are there to the amenities that you will want or need? For example, medical facilities, shopping, community support services, cost of living factors, entertainment, proximity to travel etc. • Will this location fit your long-term budget? If you wish to remain in the present home that you now reside in, you need to be knowledgeable in the following areas such as, what is the “health” of your home? Will it meet your long-term physical needs? What are the costs of property upkeep? Is this something you really want to do on your own, or would you prefer to have the maintenance done for you? Will this location support a working retirement option? Is this part of your retirement plan? Is this a growing community or a stagnant community? Do the demographics of this community meet your needs?
Another option is to consider whether you want this to be an investment, as well as a retirement home. If this will not be your principle residence, capital gains tax will be an issue. If your lifestyle choice does not fit your budget, are there options that you can take? Perhaps taking in renters, a reverse mortgage, selling your home and downsizing to a smaller or more practical style of living, or sharing your home with family or friends will help. The choices you make today will directly impact you in 10 to 20 years. Consider this scenario – you are 60 and healthy. You move to the country as a lifestyle choice. You leave your friends in the city for this new life. Sometime in the future you lose your mobility and independence. You must now move back to the city to be closer to medical services and family support. Consider the cause and effect of this change in your life. This may range from financial repercussions to the loss of friends in the community you now must leave. The bottom line in any decision is what is going to make you comfortable? Where will you be able to enjoy your lifestyle the most in your years of retirement? Give yourself peace of mind and plan beforehand.