How to Buy a Home for Your Retirement

Buying an investment property for your retirement is a basically good move. You need to make certain that investment delivers what you want, when you want it. The most efficient form of property investment for retirement purposes is to plan ahead, and have your property paid off and ready to use as you wish, preferably long before retirement.

Retirement goals and property investment issues
These are the core goals for retirement property investing:

· Financial security-The real cost of retirement is actually an equation- Capital and income less costs. New Australian market research has discovered that those who’ve paid off their properties have far better cashflow. This is a natural development of reduced financial commitments and a simplified income/outlay dynamic.

· Lifestyle- It follows from the better cashflow effect that retirement lifestyle is much better. Retirees don’t want or need any risk of additional costs, and naturally want to be able to maintain lifestyle quality.

Seems straightforward, doesn’t it, but there are potential traps that can sabotage even these very basic requirements.Property investment needs to be seen as a risk management exercise for retirees. The idea is to avoid problems during the purchase process.

These are the issues:

· Financial over-commitment- This is a potential killer. Best practice is to buy for retirement early, to minimize outlays. Over time, circumstances can make financial commitments complex. The degree of difficulty equates to the amount of outlay, in terms of buying any investment property.

· Market value- There’s a good side and a potential bad side to the property market for retirees. A rising market can undeniably generate good returns on investment over time, and even an opportunity to upgrade. A static market or downward market can remove the opportunity, and leave you with a “stuck” investment.

· Interest rates-This is a cumulative effect which can reduce retirement capital over time. Interest rates can rise, adding to the outlay while the actual ROI is flat, so getting out of an underperforming or costly investment by selling can be a loss-making scenario in a tougher long term buying environment.

Safety first- Getting what you want and avoiding risksBefore you do anything at all about buying a property for retirement-

1. Get professional property investment advice-Just do it. The more you know about your investment options and the better your sources of information, the simpler it is to invest safely and wisely. You may be astonished at the quality of information available from these sources.

2. Get financial advice- There are multiple options available for retirement investment, including many with definite tax benefits. You need to know exactly what you’re looking at financially with investment properties, so make sure you’ve got the money issues well under control.

3. Be patient- Good property deals don’t just happen. You need to know how to find them and check them out, and how to take advantage of them quickly when you find them.

The good news

You’ll definitely find what you want, with the right advice and good planning. You won’t need to worry for a second. Just make sure you do things properly.

image: shutterstock.com

A Rubber Motor Boat

This motor boat's function is to pull a banana boat with some passengers on top of it. Captured in one morning around Pangandaran Beach (West Java, Indonesia).

Plants

It's my late entry for The Weekend in Black and White. One morning, in our front yard, I found these unique shapes of different plants. I think it's interesting enough to notice.

Pros and Cons of Buying a Kit Home

Kit homes continue to grow in popularity in many markets around the world. There are a number of very good reasons for this. They are much cheaper than traditional homes, and we are seeing they are very durable, especially for those living in remote areas and harsh weather conditions are a very real issue. If you are considering a kit home build, here is a good look at the pros and cons:

Pros
· Saving money. This is the biggest reason why most people choose to build themselves. Even if you use a contract builder, the cost of building steel frame kit homes is still considerably cheaper than building a traditional home.
· Time saving. Compared with traditional builds, these homes are much easier to build, and that means a lot of time saving. Everything you need to build your home comes with purchase. Make sure you plan your budget well because you may have additional requirements. Good planning will result in a build that is many times faster than a traditional brick home.
· Strength and durability. This is another reason why these homes are increasing in popularity. In regions where harsh weather conditions require extra durability and strength, pre-fabricated homes deliver what is needed. One of these homes, when properly and purpose built can withstand even the strongest of hurricanes. Steel kit homes are very strong and very reliable.
· Flexible design. Most vendors will only create the kit once a design has been confirmed and purchased. This means you can easily modify an existing standard design with minimal cost increases. Parts are fabricated inside the vendor’s factory to very high specifications. Everything will still fit together even when you have made changes to a standard design.

Cons· Very basic. Some vendors only supply the absolute basics with their homes. You will still need to arrange electrical and plumbing professionals to complete the build even if you have considerable building experience.
· Owner-builder beware. Too many owners think they can build a home themselves. They don’t have the experience and understanding of the complete process. It is important to understand all the legal requirements of your region. You should know what it takes to get a building permit and have the required licensing to apply for one. It is important you understand the complete building process. If you do not have the experience to build a complete home, it is important to work with a contract builder who does. If you make errors during construction, fixing your problems can be very costly.

If you are considering a home build, it is worth considering how eco-friendly you can go. If you are in a remote location, you will greatly save on additional costs and living costs in the future, such as with electricity and water supply, if you can find self-sufficient options to include in your construction. Allowing for these extra costs is important when planning your budget. Hidden costs after construction is complete are common.