Don’t Let Retirement Take You By Surprise, Prepare In Advance
Typically, retirement is seen as the end of an active working life. This could be the start of a fun life. But, if you did not plan your finances well in advance, life will get difficult from hereon. As far as property investments are concerned, one has to exercise a lot of caution to ensure the retirement does not spoilt things for them.
So that your retired life is a fun time, invest in property at an early stage when your financial liabilities are less and you are more energetic. Even otherwise, the more you delay your investment, the more would be the pressure on your finances. You wouldn’t be able to spread out the debt pressure over the years, and, therefore, it may become a liability.
Analyse the need
It totally depends on you and your immediate family to decide why you need your second home. In the absence of any government-sponsored social security schemes, a real estate investment can help you clock in regular rental returns. It helps you supplement your income. Hence, if your income allows, a second home can never be a bad decision. In doing it smartly lies the key to earn a good rental income. For instance, a house at a great location that offers a good connectivity will always be in demand.
Be open to assisted living
Most people look down upon assisted living because it is usually taken as something not very different from old-age homes. However, assisted living offers you a complete package — healthcare support, round-the-clock security, etc. Spirituality, cultural meets and activities are also encouraged in most branded homes for seniors. Unlike the concept of old-age homes, which usually take care of the old, sometimes homeless, other times marooned senior citizens, assisted living is a lifestyle choice and is being opted by the well-to-do, well-travelled folks as well. The concept is gaining ground in India, too.
Also read: Top Active Senior Living Trends In India
Downsize if necessary
Just like you cut down on certain food items because they no longer suits your health and appetite, your home needs trimming, too. Cut down on the excesses beforehand. Do you see a lot of furniture piling? Have two of your children moved out for good? It is important to know what to hold. If you reside in a 4BHK and it is hard to manage it, consider its need in the first place. If a downsizing into a 3BHK unit works for you and your family, why not! You have fewer things to manage and you save up a lot on energy, maintenance costs, etc.
Mind your finances
Don’t plan for the moment; you must always think long term. You may also want to take note of tax implications, home insurance, expenses at home, etc., while making your financial decisions. Similarly, do not wait to retire. You may want to decide in advance where you want to retire ―whether a Tier-I or Tier-II city? These decisions, too, impact the way you plan your finances. A smaller city may seem to be light on your pocket but ultimately you would have to take note of aspects that are often overlooked. For example, does the city have good hospitals, good infrastructure and airport? If not, there may be chances that in case of a health complication you would have to arrange for quick trips back and forth to another city, spending extra on food, stay and tickets.
Soon, you will be able to withdraw up to 90 per cent of your provident fund corpus for making down payments while buying a home. Sounds good. However, if you are nearing retirement, this may not be a good idea. This is because you will not have ample time left to fill up your PF coffers with an increased contribution from your side.