Profile picture for user20761143

IS IT WORTH IT TO BUY A SECOND HOUSE TO RENT AND THEN AT RETIREMENT MAKE IT YOUR PRIMARY RESIDENC

Is it smart to buy a new construction smaller home for retirement and rent it till that time?  Or, should we just wait till retirement and buy a smaller home at that time? 
  • September 23 2013 - O Fallon
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Answers (3)

Profile picture for edboner
It can work....but I would consider the cash flow in the years prior to retirement and whether the property is a good investment in those years as well.  Yes, you can....but you should consider the purchase as an investment as well as a potential retirement home. 
  • October 12 2013
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Lots of "what if's" to consider.  How far away from your permanent location will the retirement home be?  How many years before you retire?

If the home is in the sunbelt or a significant distance from you - you will more than likely need a property manager which will cost  you a percentage of your monthly rental income.

For a second home you will need 20% down.  Many people do this every successfully. No one can predict what the market will be or interest rate in the next few years. 

If you can afford to carry both payments in the event you cannot rent it - I'd at least look at the option.  If  you cannot I would wait until retirement.
  • September 26 2013
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Profile picture for Outer Banks N C
No way to know, you have to work the numbers and guess what the future will do and be like and then make the best guess you can and hope for the best. What you are saying could work out well, it could also do poorly. There is just no way to know for sure.
  • September 23 2013
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