To Relocate or Renovate after Retirement?
With the prospect of retirement, you are faced with several questions. How will you manage your finances? Will you immediately hit the road and travel like you’ve always dreamed of? Will you move closer to your family? Are you going to downsize? Are you going to refurbish your current home?
With so many questions bothering you, it is easy to make a hasty decision that you might eventually regret. The trick is to give yourself enough time to weigh all the possibilities. For many, the decision whether to relocate to a new area, or renovate your existing home can be a tricky one.
Can you renovate?
A recent study observed that as a demographic, baby boomers spend more than other age groups on renovations. These renovations are not necessarily minor refurbishing touches; rather they’re top-to-bottom overhauls that can cost some hefty coin.
If you are willing to spend a large sum on renovating your current home, you need to make sure that this results a long-term term benefit, and investment for your lifestyle. By gain, we mean that your renovations should be long-lasting without you being burdened with frequent updates.
A cost benefit analysis can be helpful here. In other words, will the quality of life increase of this renovation be worth the financial cost? The size and maintenance of your current family home certainly has a major role in this decision. If you are planning to get your family home renovated, then the maintenance of this potentially large property will also be higher than if you were to downsize into a new place. If your family decides to move in with you, then spending a hefty amount of money on renovations makes sense. However, if you are getting your home redone just for yourself (and potentially your partner), you might have to evaluate if the juice is really worth the squeeze.
Calculating with long-term goals in mind is necessary. Yes your money will not be tied up in property, and you will have cash on-hand. But renovation is certainly not cheap, but for many, it can be completely worth it.
Can you relocate?
It is not uncommon for retirees under the age of 60 to relocate. In fact, most retirees prefer to move closer to their family and friends. Relocation just like renovation has its pros and cons. Whether you decide to relocate depends on multiple factors such as your health, your finances or your family dynamics. Nevertheless, relocation is a serious commitment that requires meaningful research.
If you are being able to save some money, downsize and move closer to family, than relocation can be a good bet. Downsizing is one of the most opted for choices among retirees who find it difficult to keep up with the maintenance and excessive bills of larger properties. If you are considering relocation, don’t forget that renting can be a good option, and a great way to test a new area before making a long term commitment.
A few pointers that you need to keep with you while evaluating relocation vs. renovation are
- Evaluate pros and cons of each decision
- Give yourself time and test the waters
- Get help from a family member and financial advisor
- Do not ignore property taxes and maintenance, and cost of living in both cases
With diligent research and proper planning, you can be off to the healthy and secure start to retirement that you’ve worked so hard for.