Most people wish to live closer to their families and friends post retirement. This decision makes it important for them analyze the expenses that would be incurred during and after moving house.
Some of the expenses that you need to know before you move house are as follows:
- Searching costs: There are various searching costs involved when you are moving a house. If you have family members and friends in the place you plan to shift, you can tell them to look for a house. However, if you do not, you would need to travel to the place and look for a house on your own. You can also contact real estate agents who can help you to find a house in the place you are looking for. These agents charge various fees and commissions according to the services they provide. Along with this, when you go there to finalize the house, you would need to stay at a hotel, which will again be an extra burden on your pocket.
- The selling costs: While this may sound a little strange, there are different types of costs involved in selling as well. When you are thinking of selling your house, you would need to go through a real estate agent. These agents charge a substantial amount of commission to sell your house, which might burn a hole in your finances. On the other hand, you can decide to sell your house without the help of a real estate agent. However, that will also not be without any expenses involved. Also, this will bring in the unnecessary headache and aggravation of contacting different sellers in the market. Selling a house will also entail the services of a real estate lawyer. There are documentation and recording fees that you would need to pay from your pocket. Therefore, you need to understand that more than 10% of your selling money will be incurred in the process of selling your house.
- The buying costs: As you would incur different types of fees and charges during selling your house, you will be spending more while buying. Although you will not be required to pay to a real estate broker, there are different legislative fees and taxes that you would need to pay before you move in. You might also need the services of a real estate lawyer as he would be the best person to let you known the different legalities involved in buying the house. Moreover, if it is a new house, it will need different types of inspection, which will not be free.
- Relocating and re-establishing costs: You might be happy about finding and buying a house that you are looking for. Also, you may have been able to sell your house. However, have you thought about the moving and re-establishing costs? To ensure each and everything that you have cherished till now goes with you to your new house, you will need to hire the services of movers and packers, which is another huge dent in your savings. After reaching your new place of residence, you would need to check the repairs and maintenance you need to make there. You might be accustomed to various types of luxuries you had in your previous home and it is natural to want to have the same things in your new home as well. Therefore, renovations would be required to feel comfortable in your new house.
- Life re-establishment: Being a retiree, you need something to occupy your time with. For this, you can enroll in different clubs and libraries that will keep you busy. Along with this, if you like playing tennis or golf, then you will need to look for a golfing club or a neighborhood tennis court. Your internet, television and phone connections also need to be reconnected. All these things will require money; therefore these expenses also need to be kept in mind.
Moving house after retirement should be considered only after analyzing these expenses. As the costs involved are plenty, the decision to move should be capable to outweigh the financial costs.
Rick Pendykoski is the owner of Self Directed Retirement Plans LLC, a retirement planning firm based in Goodyear, AZ. He regularly writes for blogs at MoneyForLunch, Biggerpocket, SocialMediaToday, NuWireInvestor & his own blog for Self Directed Retirement Plans. He writes about topics related to retirement planning, investing, and securing future. To learn more call Rick Pendykoski 866-639-0066 or email email@example.com