If you are retiring anytime soon, you might be looking into the possibility of downsizing to rental living. This is specifically advantageous if you want to spend your retirement years leading a simpler, yet fulfilling life. Whether you are moving into an apartment complex or opting to live in a tech-driven community, your decision involves spending time and money, both of which you wouldn’t want to waste on buying a property that’s far from ideal. Buying a home you can live in during your retirement years requires careful planning. To make sure you don’t end up making the wrong decisions with your hard-earned money, take these tips into account before entering the market.
1. Plan early and rationally
Even before you have entered the last years of your career, you should already have a specific strategy for how you are going to sustain your lifestyle as a retiree. At this point, you should have a specific set of goals in mind and a clear strategy for transitioning to a rental. On top of choosing the type of rental property to live in, you also need to have a good sense of where you want to stay. For now, the top destinations for retirees — at least in terms of affordability — are Florida, Texas, and Colorado. It’s important to consider all possible factors and come up with a game plan that guarantees an easier life during retirement.
2. Focus on getting a good deal for your home
Before you downsize to apartment living, you will need to offload your current home. Apart from being emotional, the process presents a whole new set of issues. Making repairs and pricing your home properly can be daunting on their own, but the real challenge comes at the negotiating table.
Fetching a good price for your current property requires proper timing and pricing. Presently, there is a high demand for residential properties following historic interest rate reductions, so it shouldn’t take long to find eager buyers. You only need to value your property well with the help of a real estate agent. This way, you can end up with even more cash to finance your apartment life.
3. Know how much you need down the line
In preparing for your new life as a renter, you need to run the numbers and find out how much it would cost you to sustain your lifestyle. Consider the recurring cost of utilities, application fees, parking fees, and other expenses down the line. Other important factors include moving expenses and insurance deductibles. When it comes to finding a good homeowners insurance quote that caters to renters, you will need to schedule consultations with numerous providers and shop for a policy that fits your financial situation as a retiree and takes possible contingencies into account.
The thought of downsizing to a rental could be a source of excitement, but a certain level of caution is still required. By following the tips above, you have less to worry about as you embrace a simpler lifestyle.