Tips for Buying a Bigger Home for Your Retirement

By Bob Shannon
Photo by Pexels

While downsizing is a popular move for many retirees, some opt to “rightsize” by finding a bigger home that can support homesteading hobbies and host family gatherings. As you search, be sure to look for options that will allow you to explore your hobbies and that have enough room to have kids and grandkids over for holidays and long weekends. Chhabria Real Estate Company can help you find a home that’s perfect for your retirement.

 Considerations When Buying a Bigger Home

A bigger house might be great for your retirement goals but might not fit perfectly into your budget. It’s important to take an in-depth look at your finances before getting too deep into the home-buying process, and consider how much space you actually need.

When you’re ready to begin the research for a new home, start by diving into your finances. It’s important to determine whether your current or projected retirement income will cover a larger mortgage payment. This can be challenging for retirees who are on a fixed budget, so it’s vital that you do the math and be sure you can afford the monthly payments. 

If you know that your mortgage will increase when you buy a new home, you can start preparing for the extra expense by adjusting your budget now. Consider getting a budgeting app or a personal finance advisor who can help you find ways to save money. Look at all aspects of your spending habits and see if you can save money by eating out less or taking fewer trips in your car.

Beyond checking your finances, determine how much space you’ll actually need. While it may sound great to have three extra bedrooms for the whole family to visit on the holidays, the additional space will end up costing more for heating and electricity. Consider if you can get away with fewer bedrooms, or think about how those bedrooms could be used for hobbies when they’re not needed as guest rooms. 

By determining your precise needs for your hobbies and guest rooms, you can envision and start looking for a house that’s right for your retirement.

Managing Finances

One of the most challenging aspects of buying a new home is dealing with outstanding debt. If you have considerable debt, it will be much harder to get pre-approved for a new mortgage. It’s important to swiftly eliminate debt before trying to buy a new home, so consider debt relief options with a specialist. 

Some of the options for debt relief include debt settlement, debt consolidation loans, and credit counseling/debt management. There are a few factors that will determine what option is best, including your employment status, ability to pay back the debt, and the amount of debt you owe.

Getting Ready to Move

Along with doing the research and getting your finances in order, make sure you have a plan for moving day. For seniors moving to a bigger home, it’s important to have movers or family help you with the process. There are moving companies that are specifically designed to help seniors: do some research and find a company near you that’s reliable and affordable.

Buying a house for your retirement is exciting, but it will be a much smoother process if you have a better understanding of the true costs of moving to a bigger home. Consider how much space you really need, and then start researching home prices. Come up with a plan to reduce your overall debt, and then find a house that will fit within your budget. 

Are you looking for your dream retirement home in Palos Verdes? Contact Chhabria Real Estate Company for help finding your next home! 310-902-7227.