Don't Choose Your Retirement Property Too Soon!
Category Buyer Advice
A fully-paid-for home is a vital element of a financially secure retirement, but it is actually not a good idea to buy a specific property for this purpose more than a couple of years in advance – so say Chas Everitt International Property Group in their Signpost Newsletter.
Circumstances can change what you plan to do in your retirement years, your health and your needs can change and areas can also change dramatically in just a few years. For example, a beachfront flat or cluster home that seems like a serene and pleasant retirement option now might not stay that way if the area were suddenly to become a popular tourist destination teeming with noisy strangers every holiday season.
On the other hand upcountry residents who plan to retire at the coast may find when the time comes that they would actually rather stay somewhere nearer their families and long-time friends. It is difficult to establish a new circle at retirement age.
In addition, many of those retiring from corporate life but still in good health are often choosing, these days, to continue working or to start their own new business, and it is much easier to do this in a familiar environment.
What is more, if you buy too early and too far away, you may also have to face the problems of being an absentee landlord. Making sure that a distant property is properly maintained is always difficult, even if you have a reliable and responsible letting agent and a great tenant.
So if you are starting to build up your property portfolio as part of your retirement planning, you should rather consider suitable investments in your “home territory”, where you can monitor property values and react promptly to changes you might not like.
Then when you do retire you will have the choice of perhaps moving to one of these properties, or selling one or more of them to fund the purchase of the perfect retirement home for your needs.
Author: Barry Davies