This seems to me to be a question with personal and financial components. Some of things I would consider are:
1. How confident are you that is the location where you want to retire?
2. What is the real estate market like in the area - is buying today potentially a good investment? Is there ample liquidity in the market if you change your mind and want to sell?
3. How close is it to where you live? Would you use the house, or your kids use the house, in the years before reaching retirement?
4. Is there a possibly to generate income from the house from vacation rentals?
5. What else could you do with the money? You didn't mention how many years from retirement you are, but if more than 10 years, you could potentially make a lot of money investing it now and buying down the road.
I don't believe there is a 'right' answer to your question. There are many issues to think through and I hope I've given you a few of those to consider.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines
. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.