Real estate news on Mistakes to avoid while investing in retirement homes

Investors/ Investment proposal, Real Estate Tips, Kochi
Posted on Nov 05, 2014
DK Saluja used to live in a government accommodation. As he was heading towards retirement, he decided to invest in a home which would suit his old-age needs. But before he could zero down on any location, he got retired. This left him with hardly any time for research on projects and location as he had to soon vacate his present house. Hence, he hurriedly invested in a place which made his life tough.

This is one mistake which buyers in their 50s make while investing in senior homes. There are many more such mistakes, which can be avoided. Magicbricks brings you a list-

Not planning on time

It is important for buyers to plan their investment at least 4-5 years before retirement. This will leave them with enough time for research, evaluation of prospective options and background checks on builders before investing in any project.

Not researching the location

Those buyers who desire to enjoy suburban living after retirement usually make this mistake. What if the location is scenic but does not have any emergency medical support or faces frequent power cuts or does not have adequate water supply. “Although all amenities are promised by builders in senior homes but it is important to check the current situation and common problems in the locality you are investing in” says Keval Kumar, co-founder, Property Mantra.

This also includes checking the connectivity options available in the area. Availability of public transport, security assistance and basic daily needs are ‘must-have and should be checked before investing in any location.

Maintenance of two houses

Retirement is a time when the monthly income crunches into a lump sum to be used judiciously ever after. Hence, it becomes important if a big amount is being spent on maintaining two homes – one you lived in previously and the current one.

“It is always advisable for senior people to dispose off their previous investment or rent it out for regular flow of monthly income which can contribute towards maintenance of the properties,” adds Kumar.

Managing home loans

Getting a home loan in your 50s is a tedious task, as most banks require a co-applicant or a regular source of income till the loan tenure ends. In either of the cases, it is important that you take care of the tax savings as well as EMIs (Equated Monthly Installments). If not maintained properly it can affect yours and the co-applicants CIBIL score for getting loan in future.

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