Dear Qualified Financial Advisor,
My partner and I, both in our mid-40s, are planning to retire by 60 and enjoy our time traveling together. Despite saving diligently and having passive income, we never considered buying a home due to various reasons. Now, we’re contemplating if it’s wise to invest in property, weighing the benefits and drawbacks. Your insights would be greatly appreciated.
Yours,
A Lifelong Tenant
Dear Lifelong Tenant,
While renting has its perks, owning a home in retirement offers stability and peace of mind. Consider comparing rent costs with potential mortgage payments to make an informed decision that aligns with your financial goals.
With substantial savings and years of earning ahead, buying a house using your savings could be a viable option. Manage your down payment carefully to ensure it doesn’t impact your retirement plans negatively.
Before making a decision, here are some factors to consider:
Budgeting for a Big Purchase
Track your expenses to identify areas where you can save without compromising your lifestyle.
Building a Savings Plan
Set aside funds for the down payment and invest systematically to achieve your goal of owning a home.
Choosing a Retirement Location
Decide where you want to retire and consider the cost of living in that area when planning your home purchase.
Seeking a Good Deal
Stay open to opportunities and look for potential deals that suit both your needs and the seller’s. Save regularly to be ready for a down payment.
Investing in Retirement Funds
Consider investing in high-return instruments to build wealth and cover the interest on your home loan.
Follow these steps to make an informed decision on buying a home. Best of luck!
Good luck,
Neeraj Bahal
1 Finance Advisory Committee for Qualified Financial Advisors — Mumbai Chapter
