IN THIS POST:
– Location
– Property Features
– Finances
– Maintenance
– Rental Yield
It’s a smart decision to invest in a retirement property before it’s time to quit the workforce. A retirement property is not just a place to live once the children have moved out. It is also an investment with the potential to generate income over the years up to your retirement period. However, there are some factors that you should keep in mind as you look for a retirement property in the real estate market. We’ll cover some of the considerations for buying a retirement home in this post so that you can make the best decision for your future.
Considerations for Buying a Retirement Home
As your retirement comes closer and you begin searching the market for a viable property for investment with your hard-earned savings, here are some of the factors to consider when investing in a retirement property:
- Location
- Property Features
- Finances
- Maintenance
- Rental Yield
Let’s discuss each of these considerations for buying a retirement home in detail below.
Location
Location remains the most crucial aspect in rest estate because it is a property’s location that will make it more attractive to all kinds of buyers. Families might require proximity to good schools, professionals need access to transport services to get to their workplace, and the elderly require a quiet and peaceful neighbourhood for retirement. Ultimately, a property in the right location is high in demand and often the easiest to sell too, should the need arise.
While looking for a retirement property, some of the location-based features you need to consider are the peace and quiet offered by the neighbourhood in question, the presence of other elderly neighbours so that you will have someone to talk to in your latter years, and the proximity to your family, especially if they visit you often.
Other factors to consider with regards to the location of a retirement home include the local climate, the proximity to good hospitals, as well as any services and facilities being offered by the community or housing society that you are investing in. Make sure that there is a minimal need to drive long distances to get to the facilities you’ll need in your old age, as driving will become more and more difficult as the years go by.
Property Features
Most couples downsize after retirement, moving into smaller properties that are easier to maintain and require less mobility to reach all parts of the house. However, your property buying requirements will vary from other buyers based on the property features that you think are a must-have.
If you have grandchildren coming over to stay frequently, a two-bedroom home might not be able to accommodate them all. What’s more, you might not want to worry about a large backyard and its upkeep in your old age, but kids in the family would love to have outdoor space to play to their heart’s content. Thus, you will need to determine what you are looking for in a property and then streamline your search accordingly.
Often, single storey homes are considered to be ideal as retirement property since most of the elderly face difficulty in climbing the stairs after a certain age. Moreover, having a senior-friendly bathroom in the property is always going to be a plus, especially if the space is wide enough for a wheelchair to be rolled in, directly, along with offering a walk-in shower, sturdy grab rails, and anti-slip tiles.
However, aside from looking for a house built on a single floor, you might also need to consider various property features that make a senior-friendly home. This includes the provision of wheelchair ramps, slimmer steps on the stairs, pre-installed stairlifts, railings, and many more small alterations that can make stairs safer for the elderly, along with a wide and less crowded layout, slip-resistant floors, and bright interiors.
Finances
Finances play a large part in any investment venture. Even if you have saved enough to be able to retire early, it is always ideal to invest in a retirement home that will always have good resale value, while being well within your budget. This means that you need to look for a property that offers the location and the features that you need but also holds enough appeal in its current market for you to be able to sell it back, should that be required. Always search for a property that uses up only a portion of your savings, so that the rest can be used for property maintenance, bills, and unforeseen expenses.
Maintenance
Remember that buying a retirement home is not just dependent on what you earn and have saved over the years, but also on what your finances will be like after you retire. This is one of the most important considerations for buying a retirement home because aside from the initial cost of the house, you will also need to spend money every year or six months on property upkeep. Thus, you cannot underestimate the cost of maintaining the property until you are ready to retire and you should calculate that expense beforehand so that you do not invest in a retirement property that will only become a financial burden down the road.
Rental Yield
Many people choose to buy retirement property in advance. However, it is important to consider how the investment can benefit you, not just after retirement, but even during the years leading up to it. One very effective way of keeping the property maintained as well as earning from it before retirement, is to purchase a home that has a good rental appeal and an amazing rental yield.
The location of the property and its features will obviously play a large part in attracting better tenants to the house but renting the property until you are ready to move into it can help you generate extra income every month. Here are some considerations to keep in mind if you decide to invest in a second home with the intention of renting it, whether temporarily or permanently.
Keeping these considerations for buying a retirement home in mind will help you make the right decision for your hard-earned savings and your much-deserved retirement days. Here’s a beginner’s guide to buying a home if this is the first home you’re purchasing in Pakistan’s real estate market. You can also check out this guide on buying a house in your 20s to get more advice as a young investor.
Stay tuned to Zameen Blog for more property advice and tips. We look forward to hearing from our readers at blog@zameen.com, so don’t forget to send us your comments and feedback on the posts.
