This is a guest post by Kevin Craig who is a financial
writer associated with Oak View Law Group (ovlg).
He has been providing advice on debt management since 2007. With his advice,
many people are now living a debt free life. You can get in touch with him at
kevin.craig672@gmail.com
Brief Information on Real Estate Investment after Retirement
People often raise a question whether they should invest in
real estate after retirement. To answer this, the value of housing has
increased over the rate of inflation, so investing in real estate after
retirement is a great idea, provided you are not incurred into any debt.
Moreover, retirement is such a stage when physical aging does not permit the
person to work any longer. So investing in real estate can secure the path of
your financial future. However, before investing in real estate, consider a few
important factors.
- Location: This is one of the most important factors to be considered
while investing in real estate after retirement. Make sure it is in close to
hospitals, restaurants, a post office, shopping malls and police station.
Remember, having a house in good location after retirement is beneficial to you
and your family as well. If possible, find out a house that is close to your
friends and relatives.
- Design: Design is also an important factor to be considered. While
buying a house make sure that all the necessary amenities are available, such
as laundry. Also make sure that the length and breadth of the rooms are in
proportion.
- Services: Before investing in real estate, make a list of your
preferred services and specific requirements, and make sure, you have all those
services near your house. For example, home maintenance, nursing aids and other
significant services.
Advantages of Investing in Real Estate after Retirement
Many people keep away from investing in real estate after
retirement. But investing in real estate has many advantages. So let us go
through each of them.
- Feeling of ownership: All individuals have desire of having their own house after
retirement. Having an own house offers you a feeling of ownership that matters
a lot in your old age.
- Can implement your personal choice: All individuals wish to live their retired life comfortably.
If you own a house, you can decorate it and can make some alterations according
to your choice which is not possible in a rented house.
- Avoid paying high rent: Buying a house is a better option than paying high rent to
the landlord. It will help you save some money and invest in something that
interests you. You can invest in the education of your grandchildren or can
invest in a luxurious life in your favorite city.
- Earn some money: If the house you buy is spacious enough, you can set up an
office inside your house and start a new business, or you can rent a room or
two and earn a considerable amount each month.
However, the recent financial
devastation and unfortunate recession are resulting in many senior citizens
falling into debt. So many senior citizens look for resources and grants to
provide them with financial assistance. There are many local, state and federal
grants available that can help them with housing and mortgages.
Home Buyer Training Classes
State community action partnership
agencies offer monthly training classes to senior citizens who are going to
invest in real estate for the first time. Depending on the program, they
provide first-time home buyers with down payment assistance
programs. (O-NOV11-129)
Section 8 Housing
The Department of Housing and
Urban Development (HUD) wants to increase the rate of housing ownership, so it
creates affordable housing opportunities for low-income Americans and elderly
people. In 2005, HUD received $20 million in grants to provide funds to
different housing projects all over 38 states. So senior citizens must contact
their local HUD office in their state to get a financial assistance for buying
a new house.
Conclusion
In conclusion, senior citizens
must invest in real estate post retirement since it is a better alternative
than investing in stock market. However, before investing in real estate,
consider the above mentioned factors. And if you fall short of money in the
recent economic condition, seek help from various government grants.
Note from Retire In Style Blog: I think that the reasons for owning real estate after retirement far out weigh the reasons not to. From the emotional stand point giving up all control of your environment is a huge step. While maintenance is a consideration, getting a landlord to keep things in the condition you have become accustomed to can be painful and difficult. It is just a thought.
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