Homeownership for seniors buying a home at 65, pros and cons, by Norman Green.

Homeownership for seniors: buying a home at 65, pros and cons

By Norman Green

For people who intend to get a house after retirement, they are normally required to consult a realtor to help them make the right choice of home they would like to have with all possible features that the individual may require and probable proximity to social amenities such as health centers. It is also of significant essence to find a financial advisor to help with making an appropriate budget for your new house to be. Senior home buyers also determine the type of home they would want to buy. That is whether it is a single family home or condo to narrow down the search. Home buying process among the seniors is accompanied by a list of advantages and disadvantages. Some of the merits involved are;

HOME OWNERSHIP BUILDS EQUITY

In case seniors purchase a home and hopefully the home value increases then there is more equity created. Equity is very essential in case of an emergency since one taps it or at times lives on payment from a reverse mortgage. When purchasing a home, people need investigate whether the home is likely to have more value in few years to come.

HOME OWNERS HAVE A HIGHER NET WORTH

The average home owner has a net worth of more than $250,000 while that of a renter is at $6200. The data is based on the 2019 consumer finance. Net worth is not normally classified by the level of education or gender of an individual but rather the amount of assets one has. More

to that owning a home is generally cheaper than renting. Especially in situation where by property taxes are low or the home buyer is a cash payer. Some states further have favorable conditions in that they give tax reductions to senior citizens.

SECURITY

Owning a home further has merits in that an individual can improve a home, apply paint of choice and even renovate. One further is able to customize a home with various upgrades.

Advantages are different depending on the type of home a buyer wants to get. For instance buying has benefits such as no exterior paint required and that landscaping and maintenance of outdoors is well taken care of by the home ownership associations. Town homes are smaller and thus less work is needed to maintain them which retirees manage easily. Retirees who normally travel a lot are encouraged to get condos since such homes are more secure.

Buying a home by retirees in as much as it has merits, there are also various demerits that discourage senior citizens from home buying. Some of the cons related to home buying among senior citizens include;

When buying a home at old age it is unpredictable to determine whether one will live long enough to see the return on investment. Individuals risk putting up their assets in home ownership due to the unpredictable housing market. The fact that most senior individuals receive less income than in their productive years also affect modes payment and in times of crisis, an person may sell off the house due to accumulated debts.

PROPERTY TAXES

Home ownership among older individuals may be quite expensive as compared to buying a home at a younger age. Home purchase process involves paying of property taxes and several insurance which become too much for older individuals with relatively low income. It also involves several repairs and remodeling which require huge amounts of capital in making the house comfortable for the new home owner. Although there are some states that reduces property taxes for older home buyers, it is worthwhile to note that it does not occur in all states.

THERE ARE LIMITED MOVEMENTS

Unlike renting where by one can easily pack belongings and leave, moving from a home one owns takes some time since it involves selling the house and relocating. The selling process may take longer since for a home to be put on the seller market since the home needs to be upgraded first before calling in potential buyers and depending on various other aspects the home may take long for a buyer to show interest in the home. Home ownership among older people thus leads to limited mobility.

Another factor is that in old age, one’s time to see the value of a home appreciate is unpredictable or other wisely not enough. There are also several disadvantages involved in settling for a condominium. Among them are;

ADDITIONAL FEES

Owning a town home requires one to pay extra fees which cater for the maintenances of the condominiums. Home ownership associations that govern the condominium add the monthly costs of being part of them. Town home however are not an option for every senior citizen. Mostly those that buy the home are buyer that travel a lot and need to ensure that their home is safe even in absentia.

Senior citizens interested in home buying should carry out careful research and get what is best for them. When the right processes are followed, home buying becomes a lot easier. It is also considerable if one varies between renting and buying which is the better option just to ensure that an individual is on the right track.