It is getting increasingly common in India for seniors to shift to a smaller and more comfortable home after retirement. These homes are often situated away from the hustle and bustle of city life, where retirees can relax and indulge in things they love.
If you have something similar in mind and are searching for a dream retirement home, here are 4 important things you should know-
1. Select Property That is a Good Investment
Even if it is a retirement home, you or maybe your children in the future would probably end up selling the property. So, it is essential to ensure that the location you select for your retirement home has decent growth potential in terms of real estate prices.
Focus on selecting a good investment rather than buying a home just because the deal is too good to miss. Closely analyse how the property prices in the area have appreciated in the last few years to better understand the future potential.
2. Do Not Sacrifice on Location
Throughout our working lives, we regularly make several sacrifices due to many different reasons. But the location of your retirement home is not something that you should sacrifice on. As it is a retirement home, ensure that it is close to good hospitals and clinics as healthcare problems are common in old age.
Also, ensure that the location is not too far from where your family and friends live. Close proximity to grocery stores, domestic help, laundry, library, and parks could be an added advantage.
3. Repay the Loan Before Retiring
It is wise to clear all your liabilities before you retire. If you are about to purchase a retirement home through a housing loan, try and repay it fully before retiring. With no monthly income, you’d be required to use your savings to pay the monthly EMIs after retiring.
You can also consider products such as pension plans to ensure that you continue earning a regular income even after retirement. This pension income could be used for managing the basic expenses without extinguishing your savings or redeeming investments.
4. Invest in Life Insurance
While a life insurance policy has no direct relationship with your dream home, it is still an essential purchase to retire comfortably. It will ensure that your spouse and other members of your family can live a financially stable life even after your demise.
Even in case if you are yet to fully repay your loans, a life insurance plan will ensure that your family members are not left with the liabilities in case of your unfortunate demise.
Make Smart Investment Decisions to Retire Comfortably
There are now plenty of excellent investment options that you can consider living a financially independent life in your dream retirement home.
Consider options such as pension plans, ULIPs (Unit Linked Insurance Plans), life insurance, and health insurance to build a safety net and ensure that you and your spouse can grow together, relax, and enjoy things you love without worrying about finances.
