When Is It Time to Buy a Retirement Property?
Is it time to buy a retirement property? Perhaps you feel that you’re nearing retirement age — and you want to be able to secure your retirement home in order to fully enjoy your golden years. But is it time to finally consider looking into investing in another second home?
Deciding whether you are ready to buy a retirement property can help you shape your financial goals in the coming years, as well as further refine your plans as you near the sunset of your career.
Is it better to buy long before retiring, or a few years closer? There are no hard and fast rules on when it is time to buy your retirement property, as it will all depend on your readiness to take on a new investment. At any stage, buying a property — even for retirement — is a major decision to make, so it’s best to be prepared and equipped for when you finally decide to take the plunge.
Here are some signs that this may be the right time for you to invest in your retirement home.
You are financially prepared
Regardless of your perceived timeline, you have to be financially prepared to buy a second home for retirement. There are external factors that may compel you to purchase a retirement property without fully considering your personal situation — such as the fear of missing out on a good deal before the market rate rises, or when the rest of your peers have bought properties in a location that you have not fully familiarized yourself with.
At the end of the day, you need to make sure that your bases are covered in terms of finances. You have your hard-earned money saved for you to take up a retirement home while enjoying your golden years.
As you plan your finances, prevent money-related stress by doing the proper calculations in acquiring a second home. Calculate your monthly expenses and factor in property taxes and maintenance costs. This will help you better gauge how much will be left of your retirement fund, and avoid large financial burdens.
You know what your retirement looks like
When you close your eyes and think of how your days in retirement will look, what do you see? While you may enjoy the idea of lazing away in paradise, only decide on a retirement home when you are certain of how you would like to spend your pension years.
Do you fancy the idea of living alongside sandy shores and crystal blue waters? Be honest with yourself about your personality, traits, interests, and possible needs that may arise. For example — you might purchase a two-storey retirement home, only to realize that it may be more convenient for you to live in a single-storey unit as stairs may be too daunting when you retire. Or you may have thought about spending your days in a farm, but end up regretting the upkeep it takes to maintain a large agricultural property.
When in doubt, it pays to have firsthand experience. Dedicate a week or two staying in your prospective location to get a feel of the way of life: is it close to major access roads and facilities? Are there banks, hospitals, and supermarkets nearby? Do you feel at ease with the kind of lifestyle the area has to offer?
These questions may help you better decide whether a certain place is right for you come retirement.
You have some years left before retirement
Although there are mixed sentiments as to whether you should buy your retirement home decades before your golden years or just a few years before, purchasing a retirement property does require some advanced planning. You wouldn’t want to wait until you turn in your ID and begin receiving a pension to start looking — buying another home without preparing ahead may lead you into some unforeseen financial roadblocks, so it’s better to scope out your options while it is still early.
You may not have also planned your finances enough to accommodate for certain decisions such as renovations, which can impact your cash flow. In any case, it pays to think about your retirement before it actually happens.
If you have ticked off all the items on this list, then you may be ready to invest in a retirement property. Enjoy the rest of your golden years under the sun with Rockwell’s first residential resort development, Aruga Resort and Residences — a distinct property that provides a one-of-a-kind resort experience combined with its utmost conveniences.
Aruga Resort and Residences is close to the Mactan-Cebu International Airport and Cebu City’s prime business centers, making this area conducive for work and play. Guests can enjoy private and full access to luxurious beachfront living and exclusive amenities such as a 270-meter beachfront, while staying close to its renowned sailing and snorkeling destinations.
With sea views and exclusive villas along an exclusive 270-meter beachfront, Aruga Resort and Residences- Mactan by Rockwell is redefining residential resort living in Mactan, Cebu, nestled in one of the country’s most renowned destinations. Invest in your retirement home today with Aruga. Learn more on arugaresortandresidences.com.