A question that often bothers seniors as they near retirement is whether or not they can really "love their home" while in retirement. I often hear from my clients that the answer is a resounding "yes." I love my home. I love my current home and I love my community.
There are a number of reasons why you can love your current residence while in retirement. Many of these reasons are tied to tax laws. Real estate investment and saving opportunities are possible when property is held in a tax deferred account. In order to qualify for such an account the homeowner must meet certain requirements. One such requirement is being owner of a traditional residence.
As we all get older there are changes that occur in our lives. In many cases our homes are no longer our main place of residence. Increasing our daily commuting distance, more family and children, and the realization that not everyone we know lives nearby may cause us to evaluate other residential options. In some cases we decide to trade in our existing home for a more sedate retirement community. If we are lucky enough to have been able to maintain our homes, we can enjoy all the benefits of our retirement community without having to leave our current residence.
Many people love their current community because it is the place they feel safe and comfortable. For these people they can easily transition to another retirement community without having to leave their existing home. Transfers usually don't have to worry about how to pay for their new community and usually don't have to move.
Another reason to consider a transfer is when a homeowner decides to live in one part of the country while continuing to live in the other part. I've seen many communities that allow you to continue to live in the current area of your community but in another part of the country. I've also seen communities that will let you transfer your home so that you can live in them for a portion of the year. The nice thing about a community that allows you to move when you want is that if the weather changes you'll always be able to stay in the same environment.
One drawback of a community that lets you move when you want is that if your home is damaged in any way you will have to leave your community and find somewhere else to live. This is obviously a big concern for anyone who loves their home and wants to protect it. Communities that are forced to let people move in and out often experience lower property values and higher rents. Many times the new community makes up for this loss through enhanced marketing and added services such as onsite restaurants and shopping malls.
The key factor in deciding if a community is right for you is whether or not it will improve your life and your pocketbook. There are a lot of great benefits to transferring your home to a new community. You will have the convenience of a local grocery store close by where you can stock up on all of the things you love to eat and do. You'll have access to activities and clubs that are not available in your current neighborhood. Most importantly, if you live in an area where the crime rate is less than 20%, you will not have to worry about losing your security and comfort.
The only real downside to moving to a community of your choice is the cost. Typically, these communities will charge a one time entrance fee for anyone wishing to move into the community. You will also have to pay a monthly fee for utilities while you are living there. Many times these fees are significantly higher than what you would pay if you stayed in your current home and paid your home off on your own. If you are looking for a way to save money, consider attending a home school or community college instead of moving into a new community.