Summary of this article
Assess if a second home fits within your retirement financial goals.
Choose a second home with safety, hospitals, transport, and basic amenities.
Select a second home that’s easy to resell if plans change.
There are homes where you live your daily life, and if you own another one, where you can spend time during your vacations or leisure, then such a home is called a Second Home. Many people purchase a second home for their retirement or as an investment. If you plan to buy a second home for your retirement, then it’s crucial to know these aspects to make the right decision. Here are some important questions that you may ask before buying a second home to make the right decision.
Will Buying A Second Home Impact Your Other Financial Goals?
You may consider buying a second home for your retirement, provided it doesn’t impact your other financial goals. Your priority should be to accomplish your essential financial goals, such as related to meeting your regular expenses and paying towards outstanding loans. If buying a second home overlaps with your other financial goals, then you should first focus on other important financial goals before setting aside money for buying a second home.
Choose A Second Home That Would Be Safe For You To Spend Time In Retirement
People usually know about every little thing around their home where they spend their retirement time, and it makes their life safer and more comfortable. However, in a second home, you may not know all the details of essential facilities that you may need when you spend your time there. So, it’s crucial to identify all the things that you may feel essential at a place where you plan to spend your time in your retirement. For example, you may need a hospital, bank, transportation facility, etc. Check the security system and make sure about the electricity and water availability in the area.
Can You Resell Your Second Home Easily In The Future?
You may want to own a second home for your retirement when you are young, but the plan may change after you retire. So, it is important to choose a second home in a locality where there is good demand for resale property. It’ll help you in selling your second home easily and without a loss when you change your plan to live in it.
It’s important to ensure that you buy a second home only if you are comfortable maintaining it regularly. If you are not sure about buying a second home, you can always use the long-term lease option for staying in a second home during your retirement, and it can save you lots of money as well!
The author is an independent financial journalist
(Disclaimer: Views expressed are the author's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)
