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What to Consider When Looking for a Homestead in Retirement

What to Consider When Looking for a Homestead in Retirement

| July 15, 2021

Starting a homestead is a dream many retirees have. However, finding the perfect property can be challenging. After all, not all homesteads are created equal. When buying a property with homesteading in mind, one of the most critical aspects to evaluate is whether the land and house are suitable for your goals. The following is an overview of some factors you need to consider if you want to buy the perfect retirement homestead.


Make a List of Wants and Needs


This is the first step to make when thinking of purchasing a bigger place that allows you to follow your homesteading goals, and it is also a simple concept. However, it's not always an easy task. Sit down and make a list of everything that you want out of a homestead and categorize them into 'needs' and 'wants.' For instance, if you'd like two bathrooms but one will do the job, this should be on the ‘wants’ lists. However, if you have a large family who'll visit you often, two bathrooms are necessary and should be placed on ‘needs.’ Other things to note down include square footage, a garage, bedrooms, and available land.


You also need to figure out whether or not you can afford such a house. This means you need to calculate your income, debts, and expenses to see whether or not you qualify for a mortgage. Also, look for home prices in the area you want to buy in and consider hiring a realtor who will make the process more manageable.


Choose the Location and Property Wisely


This step is huge because many factors are involved: weather, proximity to family and friends, etc. To figure it out, ask yourself questions like: "What kind of weather do I need for the kind of homesteading I want to do?" or "Is the house stable?" You may need to make some renovations, but they shouldn't be extensive and significant. Most importantly, they should support your homesteading goals.


It's best to hire professionals to handle these — for safety reasons but mainly to spare you the stress. If appliances need to be swapped for new ones, hire an expert to install them. If the windows need repairs, get a professional to do it. You can find a window specialist by searching online for “casement window repair near me” or by visiting a site like Angi and reviewing customer feedback and ratings. But before you hire someone, look up a company's reviews, licenses, and rates, as well as get referrals. Window repairs could cost around $290, but the price will differ based on the extent of the repairs, window type, etc.


Look Into Financing


There are several mortgage types retirees can get, but it all depends on whether or not you qualify. A sure way to get approved for a home loan is to have low to no debt at all and an income source that the lender can check, which can be a problem for retirees. However, there are mortgages for this situation, like FHA and USDA loans. These require minimal or no down payment and have low interest rates.


Another option is owner financing, but it can be a bit tricky. It is a good idea if you have bad credit or are interested in purchasing raw land or a property you cannot buy with regular loans. The owner financing method means that you enter a loan deal with the property owner — there's no bank or lender in the middle. However, these options usually require a sizable down payment. Overall, make sure you do your research and that you understand what the contract entails before signing.


To conclude, a fantastic way to live your golden years is by pursuing a homestead lifestyle. With the products you get, you can later start a business and make extra cash while enjoying what you are doing.


Lifetime Retirement Partners can help you select the best investment products and services to help you meet all your financial goals. Call 800-971-2989 to learn more.

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