As your retirement date approaches, you may be actively moving forward with plans to prepare for retirement. For example, you may be researching low cost health insurance options for retirees or making an effort to transition your spending so that it is more in line with your fixed retirement budget. One of the most significant factors that retirees consider is what to do with their housing situation. More specifically, should you move into a new home or remodel your current home so that it meets your current and future needs? Future needs, for example, may include transitioning from a two-story home to a one-story home with handicap accessible features. There is no right answer to this important housing question, and retirees should carefully review the two options available to determine what is best for them. By focusing on a few points, you may realize that one option is more clearly aligned with your goals and objectives than the other.
The Financial Aspect
There are numerous financial factors to consider when you determine which location is most affordable to live in. For example, when comparing two separate homes, you may analyze factors like the mortgage expense as well as property taxes, insurance and utilities costs. However, the cost of living in an area, state and local income tax and even estate taxes may also play a role in where you choose to live. In addition to these points, consider how you plan to spend your days in retirement, and you may find that it is more cost effective to live in certain areas to enjoy your daily activities. For example, if you plan to travel, living close to an international airport or a popular cruise port may be financially advantageous. If you plan to golf, living in an area that has dozens of golf courses close by may be beneficial. Remodeling your home locks you into living in your current location, but there may be benefits associated with relocating to a new area.
Intangible Benefits
There are also intangible aspects associated with remodeling or relocating. Many retirees may have spent long years or even decades in their current home. They may have many friends and neighbors in the community that they would have to say goodbye to if they move far away. They may also have significant memories of kids growing up and major life events that occurred while living in the home. While some people may have trouble emotionally detaching from a home, some may also have trouble remodeling their home for these same reasons. If you are trying to decide between moving or relocating, consider the fact that the emotional upheaval of a major remodeling project can be just as traumatic as a full relocation.
The Risks and Downsides
While there may be financial advantages and intangible advantages associated with both relocating and remodeling, there also may be many risks and downsides to consider. For example, if you choose to remodel your home, you may have to deal with personal injury lawsuits from poorly selected contractors or even shoddy workmanship that affects your property value. If you choose to sell your home and relocate, you may have to contend with unexpected repair work on the new home that you have not budgeted for. These are only a few of the potential risks and downsides associated with relocating to a new home, and you should fully research all possibilities before you make a final decision about how to proceed.
One of the toughest decisions you will have to make when preparing for retirement is choosing where to live. With so many different options available to you, it can be difficult to narrow down the options and to make a wise, informed decision. As you explore the living options for your retirement years in greater detail, focus on each of these points to help you eliminate options that may not be best suited for you.
David Glenn is a home improvement expert. He occasionally freelance writes about home maintenance and DIY home repair. He’s also knowledgeable about topics like how to improve social presence and building a reputation online.
