Understanding all the aspects of a home purchase is imperative if you intend to buy one after your retirement. A salary is not your monthly source of income, neither are you physically that active to be able to travel long distances for every little thing. While the factors to consider while buying a retirement home remain unchanged from buying a home in the forties and fifties- location, connectivity, budget, expenses, etc., the approach to analyzing these is what requires modification. When you plan to buy a home after retirement, your prime focus needs to be your aging body and its decreasing ability to perform. However, if you have planning to buy a property in India post your retirement, here are some important things to keep in mind.
Ensure You Are In A Well-Facilitated Locality
The first thing to consider when buying a home after retirement is the location where you are planning to buy it. Many people tend to search for a retirement home in the woods, beaches, or any place that is peaceful and away from the city. While buying a retirement home in the countryside is a good idea, buying it somewhere that is too far from all the basic facilities like hospitals, transport stops, shopping complexes, etc., could mean more expenses. Not only would it be hectic for you to travel long distances every time you even need to buy grocery, but it would also cost you heavy bucks.
Buying a home in the countryside is a great tactic to get a better home at a lower cost but one thing to be kept in mind is to buy a home in a gated society that offers all amenities within.
Choose A Home That Supports Your Aging Body
A retirement home should not just be purchased with the vision of a vacation home. One should also understand that after retirement, the body is never getting any younger. So, buying a home that is ready for your aging body should be a priority. Many retiring individuals tend to buy a flat on first or second floor or a home with different floors. But this would not just cost extra money but also be a pain in the later years. Moreover, there are many homes that have been specifically built to home elderly people. Find one that has a gate for wheelchair access, ramps alongside stairs, walk-in shower, slip-prevention floor, grab bars, etc.
Finding a house that is senior-friendly would not just cost you fewer bucks as it is generally off the market for young people, it would also save you the money afterward required for making these needful changes.
Limit The Space For The Two Of You
Instead of splurging your whole life’s savings into buying a palatial retirement home, it is always advisable to buy a home that is suited for the number of people that would stay. To cut the overall cost of the house and buy at a lower price, downsizing the house is better option. If stuck between two houses, go for a smaller house. Not only would it cost less, it would also save your bucks later on house maintenance. Larger space would mean more efforts into maintenance and after a certain point, maids and house-helps would be required for maintenance who would charge highly for a bigger place.
Buying a house after retirement should not come as a big hole in your savings. Instead, it should provide solace for the rest of the years. So, make sure you go for a house that has limited space for you and your partner.
Calculate The Home’s Monthly Expenses
Not everyone would have the lump sum to offer a complete down payment of the house and so take home loans to suffice. While making down payments is easy in your early retirement days, paying the monthly EMI on your loan later in life could be an issue. So, to make sure you do not have to worry about finances in your old days, calculate the monthly expenses beforehand and ensure that your post-retirement income would be able to cover it. Moreover, the taxes on the retirement home should also be taken into consideration.
Senior citizens have a number of benefits by the Indian government that they can avail the interest rebates and other benefits to save money and even add to their post-retirement income.
While buying property in India is something most people do in their forties to early sixties, buying it post your retirement is also not a very bad plan. However, one should be very careful about the finances and the income. You are aging with time and there needs to be some money kept aside always for medical emergencies. So, managing the cost of the house is imperative if you are planning to invest in a home post your retirement.