Second Homes
Should We Buy Our Retirement Home Before We Retire?
There are real advantages to buying while you're still working — and a few cautions.
Reasons people buy early
- Financing is generally more straightforward while employment income continues
- You can use the property for years before the full-time move
- You get to test the location before committing to it permanently
- You lock in a property in a market you believe in
Reasons for caution
- Carrying two properties has a real monthly cost
- Plans change — health, family locations and interests all move
- The right property for weekends is not always the right property full-time
Discuss the financing and tax mechanics with your lender and CPA. On the real estate side, Fred helps clients test the theory: spend real weekends in the area, look at the property as a full-time home, and evaluate what happens if the plan changes.
This article is general education, not legal, tax, insurance, financial or engineering advice. Please confirm details with qualified professionals and the appropriate local authorities before making a decision.