Regardless of your age, there are some areas of your retirement that you should always be planning for every step of the way. Most of us realize that planning our finances to allow us to live comfortably during out golden years is essential but fewer people think about their homes with regards to their retirement and beyond. If you are young and just starting your family, investing in luxury real estate in Scottsdale is a great way to plan for a better retirement. It will also allow you to enjoy a more luxurious lifestyle for a longer period of time.
Purchasing luxury real estate prior to your retirement brings together the ideas of buying as an investment or as a residence. Anyone considering a real estate purchase must consider the potential return on investment, liquidity, and the personal use value. The reason that this is such a good time to invest in luxury housing is the low prices being offered now and the slow and steady climb of the property values.
How Important is Liquidity when Buying Luxury Property for Retirement?
If your retirement plans involve buying a condo in Florida and living out the rest of your life with someone else taking care of the lawn, buying a piece of luxury real estate in Scottsdale may not be the right option for you. However, if you plan to keep the home and live in it long enough to build up the equity and the value, it may. Basically, liquidity matters if there is the potential for you to have to purchase another house while owning this one and it would put you in a financial bind.
Return on Interest
It is no secret that investments in real estate overall has not seen the same type of growth during the last two decades. Luxury properties, on the other hand, are growing in popularity, making it the ideal time to make an investment without paying full price. If you have time to pay off your mortgage before you reach retirement, you will have even more options on how to put your ROI to good use!
Personal Use Aspect
There are many advantages that go along with purchasing luxury real estate that only increase when you purchase your dream home early enough to enjoy it before retirement becomes a reality. Luxury golf homes are actually the goal for many couples who want to enjoy their retirement doing what they love the most. Investing in your dream home early means having more time to enjoy your favorite activities without spending years paying rent on someone else’s property. If the mortgage is paid before retirement is reached, the couple has the added advantage of significantly reducing their expenditures at a time when their income will also decrease.
Another financial consideration for many retirees is the inheritance they will leave behind for their children and other loved ones. Investing in luxury real estate will provide you with an investment that can either be sold and divided among different family members or for one beneficiary that you want to look after even after you are gone.