Individuals anticipating retirement should plan for a retirement home years before they actually retire, advises Kiplinger. The benefits of building or purchasing a retirement home before retiring include the ability to pay down the mortgage while a steady pay check is still arriving and the potential to use the home as a vacation or holiday venue.
Retirees seeking to purchase a retirement home can also use their existing home as collateral if equity exists within the current loan, explains Kiplinger. The interest rate is slightly higher on a second home than a first home, but home buyers can use savings or earnings to make a sizable down payment to offset the additional costs.
Aspiring retirees can also take time to plan their retirement home and make renovations over several years to offset having to pay a large sum upfront once they are retired, according to Kiplinger. The extra time allows home buyers to evaluate floor plans that may aid them better in later years, such as a one-story or a two-story with mobile access to the second level. Home buyers can also survey model homes or interior design examples to plan decor and construction designs that fit with their plans for retirement living.