The Advantages of Buying a Retirement Home Before You Retire

buying your retirement home before retiring

Are you considering buying your retirement home before retiring? You’ve come to the right place. Owning a second home before retirement isn’t financially feasible for some, but for others it’s a great idea that provides many benefits. After all, why delay the inevitable? Why deprive yourself of the fun and memories that you could create now, instead of later. This article takes a look at five advantages to buying your retirement home before you retire! 

5 Advantages to Buying a Retirement Home Before You Retire

1. You Have a Fun Place to Visit

The first reason to buy a retirement home before you retire is so that you can have a fun place to visit. If you’re like most retirees, your second home is going to be in a warm place that you like to spend time. Instead of having to spend all that money for hotel rooms, you can sleep in the comfort of your own bed in a house you own. Why wait to make memories with your friends and family? Buying a 2nd home before you retire allows you to get on with the fun before you stop working! 

2. It’s Easier to Qualify for a Mortgage

When you’re employed and earning a consistent paycheck, qualifying for a mortgage is often easier. While The Equal Credit Opportunity Act doesn’t allow lenders to discriminate against you because of your age or the fact that you’re retired, your ability to qualify for a loan does depend on your income. Buying your retirement home while still working means you may be able to qualify for a bigger loan at better terms, thanks to your higher income.

3. You Can Earn Income from Renters

Another advantage to owning a second home for retirement while you’re still working is that you can rent it out to earn extra income and pay down your mortgage. Let’s say you buy a house five years before you retire. During those years, you can have long-term tenants or turn it into a vacation rental property and use someone else’s money to build equity in your investment. On top of the equity you build, home values may appreciate over time and you could refinance at a later date. 

Buying a Retirement Home Before You Retire

4. Allows You to Make Sure the Location is Right

One mistake people make when buying a retirement home is not spending enough time in the location before purchasing and later, find out they don’t like living there! Buying a second home before you retire gives you time to get a feel for the city and determine whether or not you like living in that location. This way, you don’t make your big retirement announcement and have a going away party, just to return to your hometown a year later. 

Searching for a warm place to buy a second home for retirement? Consider looking at Las Vegas real estate!

5. There’s Money to Fix Up the Place While Working

A good strategy with second homes is to invest in fixing them up while you’re still working and have extra money. This way, you can turn it into your dream home without as much financial strain. Additionally, all the renovations and updates can be done while you’re not living there, saving you the noise and headache of living in a construction zone. 

Conclusion to the Advantages to Buying Your Retirement Home Now

When you’re still a few years out from retirement, you may consider buying a retirement home. From having a fun place to vacation and getting a mortgage while you still earn a high income, to fixing it up or renting it out while not in use, there are many advantages to buying a retirement home before you’ve retired. Consider these advantages the next time you shop for your dream retirement home! 

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