For most people, it makes the most sense—financial and otherwise—to buy a retirement home while they’re still working.
While it doesn’t sound like a “retirement” home if you buy it while you’re still working at the daily grind, it could be the smartest choice for you.
Why You Should Buy a Retirement Home BEFORE You Retire
Interest rates are still low, but there is a hike on the horizon. That’s not the only financial benefit to buying your retirement home in Aspen (or any of the surrounding communities) now, though. Here’s why:
- You may find it easier to get loan approval while you’re still working. Mortgage lenders look at your debt-to-income ratio, or DTI, and that’s lower when you have monthly income from work.
- You can be approved for a higher loan amount if you have more money coming in.
- Renovations and improvements are easier when you’re still on a salary.
- You’ll have a head start on paying off your mortgage if you buy your retirement home now. Even if you’re five years out from retirement, that’s five fewer years you’ll be paying.
- It’s easier to plan your living expenses for retirement if you already know what your mortgage payment will be—and you can head off future repairs (and save money) with the appropriate maintenance now.
- Owning your retirement home can entitle you to certain tax breaks.
- If you can handle two mortgages—your current home and your retirement home—you’ll be expanding your investment portfolio. You may even choose to rent out your retirement home for a few years (until you’re ready to move in), bringing in extra income that can dovetail with your new mortgage payments.
Are You Buying a Home in Aspen?
While you’re here, you can also browse our:
- Basalt real estate listings
- Carbondale real estate listings
- Snowmass real estate listings
- Woody Creek real estate listings