By: Jim Vogel, elderaction.org
Now that retirement is here, you’re looking forward to exploring some hobbies, taking trips you always wanted, and more. After all, you’ve earned your retirement after so many years of hard work and productivity.
But instead of just resting, many seniors are now selling their old house and buying a new one. There are many advantages to this, which is why you need to seriously consider purchasing a new home.
Why Many Seniors Buy Someplace New
Home Advisor has a list of 10 reasons why so many seniors are buying a new home. Some of these include:
- Housing prices are rising again, making a home a good investment.
- You can deduct the interest you pay on a new mortgage from your taxes.
- Owning a new home brings stability and security.
- You can find a new community to explore. That can be very valuable if your current community changes too much over the years.
- Interest rates are still low.
If you’ve never owned a home before, now is the time. The AARP explains that seniors are living longer these years and need a place to call home. You are also putting money into the equity of your home instead of a landlord’s pocket. And if you already own a home, many seniors downsize to get a home that’s smaller, cheaper, and easier to maintain.
Finding The Right Home
Once you’ve settled on making the move, the next step is finding the right place. When you are a senior, you have more choices than ever for your new home. You can always buy a single-family home, but you should also look into other options such as condos, townhomes, and senior communities.
A Place For Mom has a page listing different senior living options for each state, most major cities, and even Canada. You can also search by type of residence depending on your needs.
But again, many seniors go with downsizing. Chances are, you don’t need that big house anymore. It’s annoying to maintain (all that mowing, shoveling, and cleaning), but you’re also paying for square footage you don’t use. Contact a real estate agent where you’d like to move and look at smaller homes to save money and hassle.
Finances & Mortgages
In fact, mortgageload.com explains that one of the biggest mistakes seniors make is staying in their old homes for too long. After all, your house is more than where you live; it’s the biggest financial investment you ever make. And now that you are retired, you have to play it smart with your money. That often means buying a house that’s cheaper and smaller.
If you currently own a home, you should look into reverse mortgages. Also called home equity conversion mortgages (HECM), these are where a bank pays you each month based on the equity you have in your current home. Some seniors have used reverse mortgages to keep their own home and buy a cheaper one closer to family or warm weather.
All mortgages require sufficient income before a bank is willing to loan the money, and that can be hard on a senior’s income. Reverse mortgages help with that, but you should also talk to your bank about any special mortgage problems for seniors.
Right Now Can Be A Great Time To Buy
In the end, you need to decide what’s best for you. That said, many seniors find the best thing is to buy a new home during retirement. Although finances can be a bit tricky, there are programs that can help whether you already own a home or would be a first-time homeowner. Retirement should be a time to relax, and it’s easier to do that when you own an affordable home.
I appreciate everything you had to say here about finding the right home for you. It has never crossed my mind to consult friends and family first when looking for a place. My mother is getting to the age where we need to think about putting her in a senior home. Thanks again!
I like the fact that you mentioned to contact a real estate agent if you’re a senior and looking to find the right home. It will be for the best of your interest if you can discuss with a licensed agent what you really want in a house. A good agent should be able to provide you with expert advice and options that you can choose from. If I were to buy a home for myself, I would definitely consult with a real estate agent first. Thanks.
I like that you mention that many seniors tend to buy smaller houses with little need for maintenance. My parents are getting ready to sell their home and are looking for a house right now. They want something close to me and my family but want something small. I think hiring a real estate agent will help them find the perfect home to suit their needs.
My husband and I are looking into helping my parents buy a new home. Thanks for your tip to look for a home that is the right size for them, such as single family homes. I like how you said that you shouldn’t have to spend a lot of money on homes for seniors. Thanks for your tips!
It’s great that you elaborated on how many seniors that look to buy a new home are trying to downsize from what they had previously. My husband’s parents recently starting doing just that, hoping to find a home that took less time to upkeep and had fewer stairs for my mother-in-law to handle on her bad knees. I’m grateful for you talking about maintaining so much unused square footage and then all the mowing, shoveling, and cleaning that happens in a big house.
My grandparents are planning to move into a smaller house because they said that their current house is too big for them since all their children have started their own family and lives on their own now. So I agree when you said that many seniors choose to downsize because they won’t be able to maintain all the parts of a bigger house and pay for the spaces that are not also being used anymore. With their age and condition, doing household chores would be difficult for them if they have a big place.
Thanks for the tip to use the time to downsize when you are senior looking for a place to live, as most seniors do. My dad just retired, and he is having trouble keeping up with maintaining the home he built years ago. I think I’ll recommend to him that he work with a realtor that can help him find a place that is smaller and easier to maintain.
Recently, my family has been thinking about buying real estate and I wanted to look up some information about it. I really appreciated how this article talked about how big house may be annoying to maintain. This is something that I will have to look out to see what the right fit for my family will be.
It sure is nice to know that one of the reasons seniors buy new houses is for the added stability and security. If I’m on my retirement, and I don’t really feel at peace with my current neighborhood, I certainly wouldn’t think twice about moving out and buying my self a new house. I definitely deserve some peace and quiet after all those years of working.