there are instances when buying a house can work to their advantage
Los Angeles-Long Beach, CA (PRWEB) August 17, 2016
National Debt Relief recently shared in an article published July 20, 2016 some of the insights on whether buying a house pre-retirement is a good idea. The article titled “Is It Wise To Buy A House When You Are About To Retire?” helps older consumers who are contemplating whether buying a house a few years before retiring is a good idea.
The article starts off by pointing out how pre-retirees are generally not the best candidates when it comes to buying a house. This is for the simple fact that it takes at least 15 years on an average to pay off a house and for those nearing retirement, this is an expense they cannot assume so close to their golden years. The added payments might put their retirement funds off course.
But there are instances when buying a house can work to their advantage. One of them is when the consumer uses the existing equity they have on their current house to buy a new one. This lowers their cash out and can even greatly reduce the amount they have to pay every month if any. The important thing here is timing because selling the old one and buying a new one has to happen at the same time.
The article also points out that pre-retirees can opt to buy a house if they are going to use it for additional income. If buying a house can complement their income during retirement, it can greatly help their finances. One way to do it is that older consumers can look for house where they can rent out space and even use rent to pay for the mortgage and use extra money for retirement.
There are also some retirees who are looking to downsize their house and buying a new but smaller one before they retire can be a great financial move. As they use the equity on their existing house to pay for the new one, they get to save on utility payments. A smaller house would be easier to maintain as well.
To read the full article, click https://www.nationaldebtrelief.com/wise-buy-house-retire/