RETIRING? DON’T MAKE THESE REAL ESTATE MISTAKES

Retirement can be an exciting time in one’s life.  Unfortunately, some find themselves in less than favorable circumstances due to unwise real estate moves.  Avoid these mistakes if you are planning a move in your retirement.

1. Don’t make impulsive decisions—Take time to explore all factors that go into any move you may be considering.  Discuss your ideas with a local realtor as well as with your financial planner.
2. Remember that retirement isn’t the same as a vacation—Vacationing in a place is not the same as living there.  Before making a move to a favored vacation spot, spend time in the area. Observe the surroundings.  Take notes. Imagine the area as your permanent home.  Do you have amenities that work for you year-round? What about the weather? Is your vacation spot suitable for your lifestyle all year?  What about the weather?  Also, can you afford the type of home that you want and the ongoing costs?
3. Don’t forget your health and mobility—Consider how your life may change as you age.  Does the location provide you with the medical access that you need?  Planning for these possibilities now may save you from having to move again if your health declines.
4. Keep in mind the costs—You are thinking about buying a second home or selling your current house and buying something maybe bigger and nicer.  Run the numbers carefully.  It is very easy to underestimate all the costs of homeownership. Consider the following:
   1. Homeowners association fees
   2. Insurance
   3. Maintenance
   4. Taxes

          Can you afford these without depleting your retirement?
     5. Have a plan for the proceeds—If you make a nice profit from downsizing, consider what you will do with that extra money.  Although purchasing a new car, or taking lavish vacations sound good, investing your proceeds may be just what the doctor ordered to be confident you have the retirement nest egg, you are looking for.

Check with the professionals before making your move.  Contact Brien L. Smith, CFP® or Sarah D. Buenger, MPAS®, MSPFP, CFP® at 979-694-9100 or visit our website at www.TraditionsWealthAdvisors.com

(Kathy Massey 2020 BCSRAOR president)