Even if you are in your sixties and retirement is just around the corner, it’s not too late to buy a house. There are many reasons for buying a property and having peace of mind in retirement is high on that list. However, there are several things to consider before buying a property:
Buy or Rent
When you’re in your 60s, start thinking about what you want to spend your money on. Whether you buy or rent is entirely up to you and it depends on what your needs are. If you own a house, you will have all the associated payments and maintenance costs, and mortgage payments. Renting could be an option. While it limits your risk, renting also stops you from possibly building any equity in your home as you age. Also, remember that your rent may go up. As inflation increases so will rental and other bills. Getting advice from Investment Counselor would be a good idea so that you can plan accordingly.
When you’re close to or at retirement age, you’ll be reaching a point where you will have a limited or fixed income. You won’t be able to work as hard or as fast as you used to and this could put some stress and pressure on your finances. Make sure you’ve done all your research before buying a property.
“If you are throwing a considerable chunk of money at a house, look at the housing market beforehand.” says David Beckerman Senior Vice President of David Lerner Associates, “If the house that you buy doesn’t appreciate in value, or even worse, drops in value, you could find that you have lost money.”
Because you are in your 60s, it could be more challenging to get a mortgage because of the period associated with the loan. Thanks to the Equal Credit Opportunity Act, there is no age limit to taking out a mortgage. As long as you can prove you can repay the loan, it is possible to access the money to purchase a home. If you are over 60 or retired, show proof of a steady income. This can include social security or retirement annuities you may have. Depending on your credit score, you may have to put up a large deposit or have more disposable income or assets for you to purchase a home.
If you decide to buy a home in your 60s, then make sure that you have all of your financials in good order and not overstretching yourself. However, if you get it right, you could enjoy many years in a wonderful home.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
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