As children move out and lifestyles evolve, most soon-to-be retirees will have a conversation about downsizing. The desire for low-maintenance living beckons. Flexibility and freedom become priorities. While some may turn to renting as they move into retirement, there’s a case to be made for buying new, and it’s worth some serious consideration. Here are a few immediate and long-term benefits to buying new in your retirement.
1. Maintenance Free Living
Are you tired of all the upkeep your current home needs? If there’s one immediate payoff to buying new, it’s low-maintenance living. There’s far less to maintain when a home is brand new. For condo owners, it goes a step further still as maintenance is taken care of through condo fees. This includes landscaping, snow removal, exterior cleaning and any major repairs or upgrades. The easiest way to eliminate the need for home maintenance is to buy new.
2. Customized For Your Lifestyle
Another benefit to buying new is customization. For retirees, this is particularly helpful in reducing maintenance responsibilities and saving money in the long term. Customization gives you the opportunity to choose the home that best suits both your present and future needs. Having the opportunity to choose floor plans and features can go a long way in making long-term living easier as you age.
You will also benefit from on-site amenities that make for a most convenient new lifestyle. Many condo complexes offer a great selection of amenities such as fitness centres, pools, recreation areas, and other entertainment features just to name a few.
3. Mortgage Portability
Do you have a mortgage on your current home? We have good news. If purchasing new is a possibility, you may be able to port your mortgage. Porting your mortgage, which simply means to transfer your mortgage to a new home, can lead to significant savings. Most banks permit porting your pre-existing mortgage to a new property. This means you can also transfer your existing interest rate, as well as the existing terms and conditions. If you secured a favourable interest rate for your current mortgage, this is a great opportunity to hang on to it. Through porting, you will also avoid prepayment charges that are applied in the event that a mortgage agreement is broken early.
4. Resale Value
Finally, purchasing a new home in your retirement provides an opportunity to benefit from resale value. The nature of the housing market at the time of purchase is a dynamic that requires consideration; purchasing new at the right time can lead to a net gain in the future. This is especially true if you buy in the early stages of a condo development.
Purchasing new enables a low maintenance lifestyle; a major drawing point when considering retirement. It also allows homeowners to customize their home for both present comfort and future convenience, an opportunity that simply doesn’t exist in most cases. Finally, there are some opportunities to not only save, but also see returns when it comes to resale values in new condos. Depending on the current market, and your future needs, it may be worth weighing the pros and cons of purchasing new as you near retirement.