There’s no place like home.
Your residence is far more than just a house. It’s a sanctuary from the world, a place of shelter and protection. It’s where children are raised, memories are made, and value is built. That’s why our homes come with such a hefty emotional investment; we become attached to them in way that we never will to a portfolio of stocks or a bank account. When it comes time to buy or sell, it’s not uncommon to let emotions rule control over the facts, leading to poor financial decisions that can affect us for years to come. If you’re considering buying or selling a home, reach out to FAI for expert guidance based on your specific needs and financial situation.
Consider the upsides to downsizing.
As we age, many people find that less is more when it comes to housing. We realize that we don't need as much space now that the kids are gone, or we tire of the maintenance that a large home requires. Perhaps we’re attracted to the convenience of city life or are considering moving to a 55+ community. Downsizing can also deliver significant financial advantages. Not only will your mortgage likely be lower in a smaller home, your energy bills and property taxes may be reduced, as well. There are a lot of decisions to make as you embark on your downsizing journey. It’s wise to carefully evaluate the lifestyle implications as well as the financial impacts of moving to a smaller home.
Go big AND go home.
Some people who are approaching retirement choose to buy larger homes or move to a more expensive locale. A spacious home can be enticing to visitors such as your children, grandchildren, relatives, and friends. Perhaps you’re considering upgrading to a new home that may not be larger in its dimensions but is in a more desirable location for your lifestyle. For example, your dream residence might be located in an area known for its fabulous beaches or exciting urban culture. Still others choose to upgrade their homes later in life as a luxury for themselves after working hard for decades and making personal sacrifices. Whatever your reason for upgrading your home, you owe it to yourself to weigh the financial obligations as well as the benefits.
Is a second home calling?
The vision of a second home can be exciting but the reality can be quite different. It’s important to first consider your motive for wanting a second home. Will you be using it for vacations? As a rental property? For an investment? Each scenario comes with its own considerations, from the additional costs to the implications associated with renting. Owning your dream second home can be a great joy but it’s an important decision that should be weighed in a holistic manner, taking into account your lifestyle goals as well as your financial plans for the future.
Where you wind up living as you approach or enter retirement will depend largely on your unique preferences and your financial and personal circumstances. FAI’s friendly, helpful advisors can assist you in examining financing options and accurately evaluating potential housing solutions that meet your lifestyle and wealth objectives, for today as well as for tomorrow.