Great Tips For Buying Your Retirement Homethelasvegasluxuryhomepro.com /blog/tips-to-remember-when-buying-your-retirement-home.html

Retirement should be a time to relax and spend time doing the things you enjoy. Having the right homefor your golden years is one of the best ways to insure a happy escape from the rat race. These tips willhelp you find the right home for your lifestyle and budget.

Where Should You Buy Your Retirement Home?

Location is important when buying any home. It's especially important when buying the home whereyou'll spend your golden years. Retiring can mean you're no longer captive to miserable weather. Tired ofshoveling snow? Do the mosquitos ruin those warm Summer evenings in the backyard? Once you aren'trestricted to an area near your job, you have options.

Location, location, location. Before you drive off to your new dream home, do your research. What areyour favorite leisure activities? Do you like spending days at the beach or on a golf course? Does the Cityyou've picked offer those activities? And how does the price of those activities compare to other locations? A golfer may love the weather in L.A. but discover that they can't afford to play as often as in a deserttown.

What about the family? Will it be easy for them to visit? Retiring from upstate NY to FL is a quicker flightfor your family than retiring to Las Vegas. Retiring from the Pacific Northwest will be easier on your friendsand family if you pick Las Vegas or Phoenix than Florida. Friends and family will love coming to visit you ina warm, sunny climate. You may see them more often if you move somewhere that's quicker and cheaperfor them to visit.

How Much Home Can You Afford?

This is a top question for any home buyer. It's especially important as you enter the retirement age. Youshould speak with a Mortgage Broker licensed in the State where you plan to buy your home. They will tellyou how much you can afford with your pension, social security and other post retirement income.

Once you know how much home you qualify for, decide how much you're comfortable spending. On top ofthe mortgage payment, you'll have all the other incidentals. With more leisure time on your hands, youmay want to spend more on travel and enjoying the activities you didn't have time for before. Don't spendso much on your home that you can't afford to enjoy your new freedom.

Don't Let Them Fool You, Size Does Matter

When buying a retirement home there's no such thing as "one size fits all". Recent reports show thatmany baby boomers are choosing to age in place. Others are not downsizing but upsizing. Someboomers plan to spend more on their retirement homes than they spent on their current homes. They wantto live out their final years in the home they've always dreamed of. They are of the attitude that theyworked hard and now they plan to enjoy it. Having room for family and friends to visit is anotherconsideration.

Aside from the cost of the home, downsizing can have other advantages. Less house to clean andmaintain. Downsizing to a condo or townhome can make it easier for the lock and leave lifestyle. Lesshome to maintain can leave extra money for those things you've always wanted to do. Karen Highlandpoints out there is a trend for "Smaller But Smarter & Better Homes For Boomers".

Should You Pay Cash for Your Home or Buy with a Mortgage?

One question most seniors consider iswhether they should pay cash or usea mortgage to buy their home. Payingcash gives a sense of security andremoves the stress of having amonthly mortgage payment. Owningyour home free and clear is a dreamshared by many. Today's low interestrates have caused many to questionwhether they should put all theirmoney into their home. You shouldconsider whether putting so muchmoney into your home is the best useof your funds. Can you get a higherreturn on the money if you purchasean annuity or use it for otherinvestments?

Owners who take the mortgage interest tax deduction should verify that they can still use it. On a fixedincome, you may stop itemizing deductions. The mortgage interest deduction can only be used if youitemize. Your tax preparer will know whether you will have tax advantages with a mortgage.

Another option seniors can consider is the Reverse Mortgage. Rules for Reverse Mortgages haverecently been revamped by the FHA. As our friends at Inlanta Mortgage point out, the new rules makeReverse Mortgages a safer bet. For more details, read "FHA Reverse Mortgage Changes".

The Cost of Living Will Vary

Most retirees are on a fixed income that's less than they earned on the job. How much do you need forhousing, medical care and necessities? Do you have enough left for the activities you enjoy? Is there aCity where the cost of playing a round of golf or going fishing is less expensive? The cost of living is likelyto rule out our most expensive cities like San Francisco and New York City. Financial magazinesfrequently publish articles about the best cities for retirement. Take a look at the latest lists and see whichones appeal to both your budget and your preferences for weather and entertainment.

One of the best ways to explore the cost of living in an area is to spend a week or two staying there. Trystaying in a Vacation Rental by Owner or similar set up so you have a kitchen to prepare your own meals. It will also give you the chance to stay in a neighborhood where you can go shopping, go out for meals,etc. How do the grocery prices compare to your area? What about the cost of going to a movie or playinggolf? Doing your research will help you make the best decision about your new home.

Don't overlook State and local taxes. The road to Southern California has a detour for many retireesbecause of high taxes. State income taxes, local sales taxes, property taxes should all be considered. Aclient recently complained that Rhode Island charges an annual auto tax on top of the license andregistration. The Inheritance or Estate tax varies from one State to the next. Realtors aren't accountantsor tax experts. They should be able to refer you to someone who can help you explore how much you'll bepaying in various taxes. Your tax preparer may be able to give you an estimate of how your taxes will vary.

Health Care in Your New Home Town

Moving to a new town means finding new physicians. For retirees this becomes a bigger considerationthan for the average home buyer. Once you've narrowed down your options to a short list of cities, findout how their hospitals rank. Can your physician refer you to a physician in the new town?

Your insurance company can also be an excellent resource. Make sure you can transfer your coverage tothe new State. If not, what sort of coverage is available? Over the years, we have had a few clients whowanted to move to Las Vegas but couldn't. They had Kaiser Permanente and there wasn't one here. More recently, Kaiser appears to have contracted with some local physicians and clinics.

If the area you're considering doesn't have the health care you need, find out how far you would have totravel to find it. Is the area building new health care facilities? Health care is an area that has expandedsince I moved to Las Vegas twelve years ago. We now have The Cleveland Clinic-Lou Ruvo BrainResearch Institute. They're doing research for Alzheimer's, Parkinsons, MS and all sorts of brain injuries. Cleveland Clinic's move to Las Vegas has raised the bar for health care here.

We've had several new hospitals open. Stanford University and UC San Diego have also enteredpartnerships with facilities in Las Vegas. Veterans have a new State of the Art VA Hospital that opened lastyear. Medical tourism is now a growing industry in Las Vegas. You wouldn't have guessed it 15 yearsago.

Should You Buy a Home in a 55+ Community

Retirement communities have both pros and cons. On the pro side - no need to worry about rude teen-agers cruising the streets with music blaring from the car stereo. No playgrounds with noisy kids hangingout all afternoon. Of course, not having them can also be a negative. If your grandchildren come to visit,you'll find their use of community pools limited. How long they can stay will have limits.

Activities are one of the big attractions for a 55+ community. Most have at least one or more communitycenters. One of the most popular in Las Vegas is Sun City Summerlin. They feature 4 community centerson top of 3 golf courses. Activities include tennis, golf, crafts, fitness and more. The community activitiescan make it easier to meet new friends your age with similar interests. If you don't buy in a 55+ community,you can still meet people who share your interest by joining groups and clubs dedicated to them.

If you buy a home in a 55+ community, it will have a homeowner's association. You'll need to add themonthly HOA fee to your mortgage when making your buying decision. You'll need to review the HOAdocuments, especially their rules and regulations. Many of our 55+ communities have strict guidelines. They control whether you can add a hot tub to the back yard, what color you can paint your home on top ofhow long the grands can stay. If you've never lived under the eyes of an HOA, you may find their rulesannoying.

One of the best ways you can determine whether you should buy in a 55+ community is to spend sometime there. Visit their club house. Play a round on their golf course. A few months ago, I showed homesto a couple from a cold climate who plan to retire to Las Vegas next year. We looked at homes in Sun CityAliante. They found a home they really liked but wanted to see the club house. I let them walk in on theirown while I checked email in the car. They returned to the car in less than 10 minutes. The wife said, "no,I can't do this". I'm glad we found out in time. They'll be retiring to a new construction home in acommunity with all ages.

Debbie Drummond is a Full Time Realtor with over ten years experience in the Las Vegas Real EstateMarket. She and her team of Real Estate Pros offer the highest level of service. If you’re buying or sellinga Las Vegas home, call (702)354-6900 or email Debbie@LVHomePro.com. They’ll be happy to assist youin your move.