When should I buy a retirement home?

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Marc Smith, Financial Advisor

@MarcSmith • 03/11/16 This answer was first published on 03/11/16. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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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.

-Marc

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