A really important part of your retirement vision is deciding WHERE you are going to live. Housing can be one of those decisions that is really difficult to “get right.” Once you’re retired, and no longer tied to your current home or town by your job, the possibilities can seem endless – and feel overwhelming! Getting this decision wrong can be expensive.
One of my clients dreamed of living in a high-rise condo on the beach, only to find that their favorite beach vacation spot didn’t work well year-round. After moving in, they quickly found that they weren’t happy with the healthcare available in this small beach town and they were bored in the off-season with the lack of cultural activities. When they eventually sold this “dream condo,” they took a significant loss and suffered a painful setback.
If you are thinking of making a move after retirement, how can you avoid this kind of mistake?
We suggest to every client who is planning a move after retirement that they “try out” the community by renting first. Live in the area and immerse yourself in the lifestyle for at least a year first before purchasing a home. Then you can buy with confidence, since in today’s low inflation world, you will want to own your home for 5 years or more to reduce the risk of losing money on the purchase.