Acquiring a house for retirement is the goal of many workers who see in retirement the perfect opportunity to enjoy everything they were sowing during their years of work.
Especially when many couples dream of retiring to warm and relaxed places, so having a house can be an important saving in their income, since instead of continuing to pay rents, they acquire a property they can enjoy and subsequently inherit their family members, they also have the option of generating income in case they decide to rent it during the time they are not living it.
Workers see in retirement the possibility of being owners of their time and dedicating themselves, their passions and other personal interests, without the pressure or stress that a job generates. There are those who have pension plans, but there are others who do not have that benefit so they save a quantity of their income to live comfortably or to retire at a younger age.
In fact, this is the reason why more people start looking at real estate investments as an option to secure their future since there is a constant flow of money or they can make their income grow more securely instead of making another type of investment such as the stock market.
It does not matter if you plan your retirement or not, the truth is that buying a property always generates doubts, especially if it is something in which you will invest all your savings. That's why we prepare our tips to acquire your home for retirement. So you can get more out of your money, find your ideal home and start living the life you've always dreamed of.
Many people do not like to think about the future and especially when it comes to thinking about a scenario where we are old. Not everyone likes the idea of aging but it is a reality that we cannot avoid and the best we can do is prepare ourselves for when the time comes.
It is true, we do not know what the future holds but if we can anticipate situations such as having an economic plan to be able to take our expenses, have a decent life and enjoy what you have reaped over time.
That's why it's important that no matter how old you are for retirement, start making a plan now. This will allow you to generate more savings and resources for your retirement and you can anticipate the opportunities that come your way. In; what is the best age to invest in real estate? We mentioned that you should not worry about having the perfect age to start making a plan, you should focus on doing it now because if you start to anticipate your future, you will be able to take opportunities as presales and acquire properties at a lower cost to get the better profit.
The same happens with retirement, the sooner you start planning it the better you can see and understand all the opportunities that come your way.
This does not mean that if you lack 5 years you no longer have salvation, on the contrary. Many people choose to start buying their homes before leaving to have more opportunities to acquire a mortgage loan.
Planning allows you to create contingency plans in case of an emergency. There are cases where due to medical problems your retirement has to start earlier than expected. Or as we already mentioned, you can also have the possibility to make it younger and enjoy your money and your time sooner than anticipated.
Whatever the reason, planning your retirement lets you know what resources you have and what you can do with them. Also, if you know how much money you need to retire, you will know what will be your best time to do it.
You must keep in mind that in your budget you consider some expenses or unforeseen events that could modify your plans - if you have not contemplated them - it may be:
Also, it is important when planning your retirement with your partner, have the same plans. If you are married or share your life with someone important, both must agree on their plans. Otherwise you can plan and invest but in the end, maybe the plan cannot be able to make it.
Other important thing is that your relatives are informed about your plans. Especially if you plan to move out of the country. Inform them about the location of your house, also about the visits and celebrate holidays you plan to do. Part of the retirement is living your best life and we know that having your family can be an important factor to achieve it.
Surely you already have a place in mind. Without having to work or with grown children, couples and people seek to realize their desires to move to warmer lands to relax and live away from the hustle and bustle that cities - and people - represent. That's why many retirees have the goal of retiring to places like Florida and California.
Others prefer to look for cheaper options that offer a high quality of life compared to their own countries. That is why we are not surprised by the increase in the communities of retirees in our country, where foreigners can acquire real estate and live at a lower cost than doing it in their countries. They also have the opportunity to experience our culture and diversity.
However, it is not the same to make plans when we are in our thirties than to do it at the age of sixty or more, this must be reflected in the priorities that you establish when you are looking for a house.
Are there medical centers nearby? Or shops and service centers such as public transport? You must consider the facilities of access to the property and what surrounds it before acquiring it since you can risk your comfort if you do not consider that.
For example, our real estate developments are designed for your convenience. Each of them has elevators so you can easily access them without having to climb stairs.
For many retirees, peace and security are important factors. For others, it is important to have nearby recreation centers, not only for them, but also for when their grandchildren visit them. There are those who are more interested in having neighbors and creating communities so the residential or departmental areas that allow them to have these experiences are even more valuable to them.
But the location depends not only on your comforts but also on the real estate investment you are making. Acquiring a property should be an investment and as you should know there are many possibilities to grow your money by investing.
Finding a perfect location also includes taking into account the capital gain of the area. Especially in areas that are under development or pre-sale and that can give you a better return on investment.
For many retirees, this may not make sense because what they most want is to spend their money and live comfortably, however, to acquire a property in an area with high added value and growth opportunities will allow them to rent it at a higher price than they could rent another property in an area with lower value, or sell it at a higher price than the one they bought it.
Of course, this will also allow them to leave a better inheritance to their relatives.
That's why before you decide to buy a property, you research the area and the possibilities it has. If you plan to move to Mexico, you should consider that not all places are the same. An example could be Ensenada, this state of Mexico may be closer to the border with the United States but it could be more expensive than living in Merida.
The same situation happens with the beaches, as we mentioned in the best places to retire in Mexico, you should keep in mind what you really want to find the ideal place. For example, Playa del Carmen may be an option for you if you want to surround yourself with the nightlife while Tulum is the perfect place if you are looking to have contact with nature and a quiet life.
As we mentioned at the beginning, buying a house for retirement is the plan of many retirees and that is why they end up waiting until they retire to be able to buy a house and start with their plans. However, our advice is that you do not wait until you retire because it could be unfavorable.
For some couples it is very important to have the possibility of acquiring a mortgage that goes according to their needs and income, this can be difficult when they do not have a longer job. Even when they have the money, the bank may not approve because they do not have a job.
The truth is that many people do not want to commit all their capital buying a house, so acquiring this credit is very important.
The sooner you acquire your home, the more likely you are to find affordable prices. Remember that time makes the capital gain and real estate increase their prices, especially if you are thinking of buying a property in an area that is growing with housing development and investment. After all, you will be investing in your future, saving your money and making your dreams possible, since it is possible that years later the capital gain makes it impossible for you to acquire a property.
We know the income that a property can generate, mainly if it is located in tourist areas. So if you acquire a property in advance, even if you do not inhabit it, you can start monetizing with it, which will allow you to have more money for your retirement.
Another factor to consider is that it will also allow you to have a clear idea of how your retirement would look like. You could spend a few days in your new home and arrange it for your needs. And if you decide to move to a different place like Tulum, you could go to know the place, have a vacation and even invite your family to know the place where you will live and be quiet about your safety.
Acquiring a property, regardless of the age at which you do it, is an investment. One of the mistakes that we mostly comment when we buy real estate, is that we let ourselves be carried away by our emotions and we do not pay attention to the amenities, the roads, and the growth of the area that in the future have an impact on the profit of our property.
Before you fall completely in love with a place and decide to acquire a property, consider all the factors that we have previously mentioned. Mainly if you are thinking about acquiring the property before your retirement. If you do it in a cheap area but with a little capital gain you take the risk of not being able to rent it at the price you would like to obtain a favorable income for you. Maybe, in that case, your plans change and you want to sell it, but you will have to do it at a lower cost than you thought.
We cannot forget that retirement means for many people an opportunity to make their time and money what they want. But the main objective of this is not to have to work or worry about it, so it is necessary that you have a very structured plan that considers your fixed expenses such as food, transportation and services - and the payment of your house if you decide to purchase a mortgage loan - also consider any unforeseen related expenses or arrangements at home, medical services, or trips for holidays, birthdays, weddings or paperwork you have to do in your country.
That's why our best advice is that you buy your home with professionals who guarantee your safety, the security of the property and have no doubts about buying with them. Do not let yourself be guided by those who promise you many things. The key is experience, especially if the agent has worked with retirees like you and understand your needs and desires.
So now that you know what you should keep in mind, we hope you start planning the acquisition of your home for retirement by following our tips. If you have more questions about how to make your investment, we recommend you read our definitive guide for the real estate investor.