You’re at the age where you know what needs to be done and are decisive in taking action. So now that you’ve decided to consider a 55+ community you have some questions about how to make the investment. By now you know the benefits of community living, the allure of a resort-like environment or the pull of an urban-alternative with a sophisticated nightlife.
Assessing Your Needs and Your Budget
A good place to start is by figure out what you can afford. Consider whether you will sell or rent the family home. Consider whether you want to split your investment into 55+ communities in different parts of the country – some like to invest in multiple climates. Consider whether you’ll be traveling or spending most of your time in your new home.
Some questions to ask yourself as you evaluate what option might be best for you:
- What does my monthly budget allow?
- Where will I be spending most of my time?
- What amenities do I need?
- What access to shopping or events do I want?
- What recreation am I most interested in? Swimming? Golf?
- What other expenses do I need to plan for?
Once you’ve got a pretty good idea of what kind of property you’re looking for and how much you can afford to spend, it’s time to evaluate options.
Considering Your Options: Rent, Buy or Lease
Consultants, like Dave Schreiner of Mature Market Strategies, who focus on the 55+ community says that based on his experience, adults that are considering senior living communities are able to relocate, looking for value, and interested in a more-fulfilling lifestyle.
Senior Living Communities come in all shapes and sizes. Golf villages may limit on-campus transportation to golf carts, however, rent or mortgage payments may include tee times or lessons – not bad. You might find a complex that rents condos near a downtown theatre or a gated village with a large swimming pool.
Developers are responding to the needs and desires of buyers like you. Thus, most communities offer a range of options including renting, buying, or sub-leasing. Even if your current home is undervalued, many communities are still a buyer’s market. That means you can get a value in the purchase of your new home, even if the one you’re selling has a disappointing close.
If you think you may not be in your new 55+ community for long, or if you are not going to sell the home you’re in now, consider renting your new home. Renting has the advantage of being a short-term commitment, giving you time to evaluate if the new surroundings are right for you, and giving time for your family home to regain some more of its value before you sell it.
You may also consider renting your family home to offset its mortgage payment or, if the family home is paid for, using that rental income to fund your purchase in a 55+ community.
Deciding whether to buy or rent is a personal decision and should be made with the advice of your financial advisor.