Many property owners, especially those in the 65+ age group, view their homes as an emotional investment. These are houses in which children and grandchildren formed some of their earliest memories, so these homeowners may have difficulty seeing past emotional ties to the advantages of moving away from those memories. Despite these challenges, many Coloradoans are taking advantage of the incredible opportunity represented in real estate as they manage their financial planning. It is worth taking a step back to view your home as an appreciable asset, rather than a sentimental one. Here are some tips on setting the stage for your next big real estate decisions.
Define Your Goals
Are you getting ready to retire, or are you just starting to think about your retirement plan? Is your investment portfolio in good shape, or are you relying on a modest lump sum to manage unexpected financial setbacks? Do you have a plan for protecting your wealth and transitioning it to your beneficiaries? These questions are important to keep in mind when defining your goals. Perhaps you are looking to downsize and take on less responsibility, or move closer to loved ones and convenient amenities. Maybe you are finally ready to invest in your dream home! Having a clear picture of where you want to be in the next ten years will make it much easier to view your current property or properties as a vehicle to make those dreams a reality.
Identify Your Opportunities
Once you have a clear grasp on your real estate goals, assessing your long term financial plan is a good idea. Is it the right time to invest in additional real estate, or would it be smarter to supplement your retirement savings with profits from selling your house? If your home is paid off and in good condition, there are numerous ways to realize your goals through the property’s equity. Regardless of your home’s status, the rise in property values and persistently low inventory in the housing market have made it easier to sell without sinking owner profits back into home repairs and renovations. In either case, now is a great time to identify how your property value can work in favor of your goals.
Get an Expert Opinion
Once you’ve narrowed down your ten-year plan and potential buying power, it is time to get an expert opinion to fully align your goals and opportunities. Getting professional advice can add a little extra motivation, especially when it comes to something as daunting as preparing to sell a family home. A trusted financial advisor can help determine the trajectory of your retirement savings and help you create an investment strategy that works in your favor. More importantly, involving your realtor in your retirement plan is key to a full-spectrum strategy, as they are the local market expert and economist of choice for the local housing markets, supported by ongoing education and fiduciary status. With a clear view of your finances and expert advice on how to maximize your property investments, making the transition to your next chapter can be an exciting process.