• Question
  • Buying home now in place I want to retire

    Asked by a 67 year old man from Reston, VA on 4/1/2014

    What are advantages and disadvantages of buying retirement home, then renting it for a few years

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  • Categories: Downsizing/Relocation, Housing

Answers

  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • Good question. This section of our site covers some of the pros and cons of downsizing/rightsizing your housing to fit your life style in retirement.

    https://www.newretirement.com/Services/Relocation.aspx

    Some quick thoughts:

    Pros:
    - lock in your retirement house cost now and guarantee you have a place you want to move to
    - potentially get a gain on home equity in two houses at once (but if housing prices drop then you face the opposite problem)
    - lock in low long term financing given the current lower interest rate environment

    Con:
    - carrying two mortgages at once
    - if housing prices drop you may have a harder time selling your pre-retirement home
    - having to manage renters and making sure they maintain your retirement home
    - the taxes, insurance and maintenance costs of two homes

  • Login to rate this answer:   Answered on 4/14/2014
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.