We all want that retirement property some day, and preferably some place in the sun. Many people wait until they are retired or nearing retirement age before making the leap of buying that dream property overseas. However, there are compelling reasons for buying your eventual retirement home at least 10 years (maybe more) ahead of the time when you are free of work, not least because mortgages in Europe are at an all-time low and property prices are also realistic and may well go up.
Get that Retirement Property Now
Here are the reasons why buying a retirement property now will give you a more comfortable employment
- It’s easier to get a mortgage when youFre still in employment. When mortgage lenders evaluate your loan application they look closely at your debt to income ratio, your total monthly outgoings divided by your gross monthly income, which is going to be a more favorable percentage while you’re fully employed.
- You have more cash available for renovations. Even if you aren’t buying a run-down farmhouse in rural Italy, you will probably want to do some work on a property, unless it’s a new build. Again, planning ahead and having cash coming in from your work can help overcome the effects of a stretched budget.
- The bulk of your mortgage will be paid off. Ideally you want to be debt-free in retirement, which is why many retirees decide to rent rather than own. But if you choose to become a homeowner, the earlier you purchase your retirement home, the sooner you can start paying off your mortgage.
- Make money in advance of retirement. By buying now, you can rent the property out, either for long-term or shorter holiday lets. Choose the latter if you wish to use the property at times during the year. Letting it out will cover your mortgage repayments and with the extra cash coming in you can also accelerate your repayments, giving you an even greater possibility of paying the whole mortgage off before you retire.
- Plan better for your retirement. Currently, one of the biggest challenges is predicting what your living expenses will be in retirement. By buying your retirement home now, you’ll get a better picture of what your monthly expenses will be in retirement – and that means you can create a more accurate budget.
Currently, Spain, Portugal and Italy are retirement destinations where you can benefit from low interest rates and ‘good value’ prices. Just follow the links and see what Umuzee has to offer. We also have properties farther afield if you are interested in retiring to Thailand, Cape Verde or United Arab Emirates.