A Bigger Home Means A Better Retirement (For Some!)
Guest Author: Jim Vogel
For many, retirement means downsizing to a smaller space so that we can afford to travel and won’t have as much home upkeep. However, for the rest of us, buying a larger home to accommodate our hobbies, future business endeavors, and extended families makes the most sense.
Today, we weave together a bit of information on how to buy a bigger house and reasons it might make sense during retirement.
Time Is Of The Essence
Before we go any further, it’s important to acknowledge that we are in an unprecedented real estate market. Just a year ago, interest rates were low, and home prices were high. Now, interest rates are high, and prices are coming down. Each market has been popular with buyers for one reason or the other. So if you think that you’re ready to sell your house and buy a new one, move quickly. You might even need to make an offer on something before you list your current home. In that case, our best advice is to try to push the closing out as far as possible so you have time to prepare.
Why A Bigger House Is Better
There are many benefits of having a larger home at retirement, especially if you have a hobby that you plan to turn into an income. Just a few reasons to consider making your move include:
- More space. Whether you need an entire room for knitting or you have an Etsy shop like we do, you’ll need space to both work and hold inventory. And if your hobbies include woodworking, gardening, or anything else that requires equipment and machinery, you’ll need added storage space.
- Entertaining. Anytime you want to bring people into your home, you have to have enough room for them to move about comfortably. If you’re planning to have family come stay for weekends, for example, you want at least one guest bedroom, which NewHomes Source says should be outfitted with a comfortable bed, a chest of drawers, and a place to put their travel gear.
- Starting a business. A bigger home means you’ll have room to start a post-retirement business. Not only will having a business help provide you with additional income, but having a business can also keep you sharp and focused and give you something to look forward to on a regular basis.
- More customization options. Retirement is a time of freedom, but it may also come with it health and mobility issues that can slow us down without the right accommodations. If you have a larger home, you may be able to make more updates that can accommodate your changing needs. Wider doorways and more room to turn a walker or wheelchair around are just a couple of examples.
- A greater ROI. Your home is a long-term investment that you can cash in on in years to come. Ideally, you’re still healthy and happy at the time of retirement. If you maintain your larger home for 10+ years, you can expect a hefty return. Since 2012, home prices have increased an average of 7.7% annually. Since a larger house costs more, you can expect to increase in value more than a smaller property. Plus, if you want to leave your kids and grandkids a legacy, a larger family estate may be the anchor of that.
There is no right way or wrong way to retire. But if you plan to pursue a hobby that you might want to turn into an income, bigger might be better. But, remember, the market is crazy, so buy when you find the perfect place, and make sure that it has enough room for your hobby, your business, and your family.
Ready to find your dream Cincinnati-area home in retirement? Get in touch with realtor Kathy S. Koops .
About the Author: Jim Vogel, co-founder of Elder Action, is passionate about promoting senior health and safety. elderaction.org