When You Want More Space After Retirement
Your dream of the perfect retirement may be a big house for your family or lots of land for your mini-farm and that would truly be idyllic. It’s possible to make that dream come true if you know-how. Vitality Farms Company presents some tips to help you make this a reality.
Should You Buy Before You Sell?
In today’s market, many times the home you’ve set your sites on can be gobbled up before you even have the chance to bid on it. It’s sometimes necessary when looking for homes in a desirable area that you’ll have to purchase them before you’ve had a chance to sell the one you own. This can be tricky, but not impossible. You could end up having to pay two mortgages for a while or not have enough money for a good down payment on the new home. There are pros and cons with either option, explore them all.
Protect Your New Home
When you’re buying a home, chances are you’ll need to look into homeowners insurance options. Homeowner’s insurance policies are important when it comes to protecting your property, and mortgage lenders may require you to purchase insurance before they’ll move forward with the home-buying process. However, make sure you have room in your budget for this expense; if you live in Florida, you can expect to pay around $1,960 for insurance, which can take a bite out of your budget. So, be sure to explore options, research different companies like Allstate and Security First to find one that’s trustworthy and fits your needs, and use online tools to get free quotes and estimates.
The Growing Popularity of Upsizing
Upsizing after retirement is becoming more and more common as Baby Boomers look to take advantage of lower interest rates and a bullish market that has given them a larger than expected retirement fund. Another reason they’re looking for a larger space is the desire to have a home big enough for their growing extended family to enjoy when they visit or they want a larger piece of land to get away from it all.
According to a survey by Del Webb, 22% percent of 50-60-year-olds are looking to sell in order to move into a larger home, bucking a decades-old trend of downsizing. After Covid-19 prevented retirees from traveling, they’re using those savings to invest in real estate, choosing to make their homes a staycation destination instead.
Many retirees are upsizing to get more space for a business like a tree nursery, a fish farm, a bee farm, an aquaponics nursery, or another type of mini-farming that doesn’t require the more strenuous chores associated with traditional farming.
If that’s your goal, you’ll be subject to all the same laws and regulations required of any small business. By structuring that business as an LLC, you’ll be able to take keep your business and personal finances separate, protecting your personal assets should your business suffer a setback. LLCs also require less paperwork and offer tax advantages.
What to Look For
If you have a large family you expect frequent visits from, you’ll want a home with lots of bedrooms, bathrooms, and probably some kind of rec-room or entertainment room. If the property you’re eyeing will need renovation in order to give you all the rooms you’ll need, get some advice from your local realtor for reputable contractors and the kind of renovations that will get you the highest return on your investment.
You can also use an online search for professionals, but choose one that includes reviews from your neighbors who’ve used that same business for their home repairs and improvements.
Being realistic about how much land you’ll be able to reasonably care for and your level of skill in maintaining will prevent you from biting off more than you can chew.
Making a detailed budget about heating costs, property tax rates, and upkeep and then adding about 20% to that for unexpected contingencies will give you a good picture of how much you’ll need to spend monthly if you never make an income from your business venture. Remember, it will take time to turn a profit and much of that will initially have to be reinvested.
By choosing to upsize after retirement, you’re starting on an exciting new chapter in your life that can be the fulfillment of all your dreams. It’s important, though, to enter into that with all the facts to make sure it becomes everything you’ve hoped for.