How To Decide If You Want A Second House After You Retire
Retirement brings a certain level of relief. You no longer have to work or work quite as hard as you once did. If you were a smart investor, saver, etc., then you have a lot of money on which to sit or spend as you like. Perhaps you are considering real estate as a possible purchase with your retirement money. Is that what you really want? There is so much involved with real estate that you have to ask yourself these tough questions. It is the tough questions that will help you decide if you want extra homes and houses after you retire, as well as where these homes should be.
Lots More Bills
If you currently own a home free and clear of a mortgage, the only things you have to pay every month are taxes, insurance, and utilities. In most cases, those bills are pretty cheap in comparison to choosing one or more new mortgages with additional taxes, insurance, and utilities. During retirement years, you may still have enough energy to address and organize all of these bills, but what happens when you are elderly and have multiple health problems? Can you foresee a time when all of your retirement nest egg will disappear?
Of course, you could always sell your primary home. All of the money you get from the sale is profit because you own the house completely. If you get enough money from the sale, it is possible to buy a summer home and a winter home or vacation cabin extra cheap, if you are really smart about it. If you do not have a mortgage on either of the new properties, you will still have extra bills. However, you can reduce the extra bills by not using the utilities on the property you do not reside in/on for most of the year.
Lots More Maintenance
Many retirees decide to downgrade their homes to avoid upkeep. They buy condos instead, where they do not have to do any maintenance and repairs are made with a quick phone call to the HOA (Homeowner's Association). If instead, you purchase a cottage and a winter home further south, you will have three times the maintenance and repairs. That is something to consider if you think you want to spend your money on more real estate as a sign of prosperity in your old age. Yet, if you have adult children who are willing to help in order to inherit one of the houses, then maybe a couple of extra homes is worth the cost and effort.
