It is not uncommon to find a 50-something-year-old asking himself if he is too old to buy a house at his age. The answer is, absolutely not! A couple of years ago, the general assumption was that most people if not all, retired around the age of 60 or 65 which is no longer so today as many people around this age still find themselves in the working class.
This is to say that if you are 50 and you want to buy a house, you probably still have many working years left and that means more income to put towards owning a home. This doesn’t necessarily mean you should relax on your oars as you are not as young as you were some years back.
This means financial decisions for you are a little more complicated in some ways and easier in others. If you are considering purchasing a home in your 50’s, you may want to think through these issues:
1. How Big a Home Do You Really Need?
Don’t let the excitement of finally been able to afford your dream home get to you so much that you don’t stop to think about how sensible an investment like owning a huge home truly is.
The size of your home is a major consideration. If your kids are gone or are leaving soon, you need to think ahead about whether you want to clean, maintain or decorate multiple rooms you would not use, especially as you grow older. On the other side of the coin, grandkids might be a really good reason to buy a larger home and of course, if you had children later in life, you may still have years of young ones at home.
If you are considering taking a mortgage to buy the house, keep in mind that some of your retirement funds will go to your mortgage. That’s why you need to buy a home with a mortgage well within your ability to at least make payments a lot easier.
2. What About Mortgage?
If you are in your 20’s or 30’s, you can always consider a 30-year mortgage plan but in your 50’s, you need to think hard. You don’t want to be making payments as an 80-something. You can consider a 15-year mortgage or one of the other favorable types your bank makes available to you. Also, try to pay off the mortgage while you’re still working, especially if you plan to stay in that home after your retirement.
Mortgages take a whole lot of number crunching and you may also need the help of a trusted adviser. When considering getting a mortgage, be patient enough to carry out due diligence and enough research about various mortgage institutions available.
3. Where Do You Want to live?
Everybody knows that location is what makes the difference in home prices, but most don’t know how much of a difference. For example; buying a home in Banana Island is more expensive compared to buying a home in Yaba.
Maybe you’re not even looking to make such a drastic move, but you can often find shocking large living differences within your own neighborhood. A neighborhood where all the rich people live might be beautiful but you need to figure out if it is worth the cost to you.
Also, you need to check out the neighborhood you intend to live. What is the crime rate? How is the street when it rains? Where is the nearest police station? You need to be vigilant and ask as many questions as you can till you are convinced it is the right location for you
ALSO READ: Rent vs Buy: Why Buying Always Wins
4. How is your health?
If you or a close family member is having health problems, you may need all the money you can get for those expenses. You can’t also forecast health problems so make sure there’s enough money saved for health emergencies. This is a good reason not to overspend on housing.
5. How Often Do Your Kids Visit?
If your family makeup makes it important to have a house with plenty of bedrooms, a larger home might make more sense. If your kids are farther away and only visit every year or two, you may not need to buy a huge house so you don’t end up with empty rooms.
CHECK OUT: Properties For Sale In Lagos
6. What is the True Cost of Buying?
You need to ask yourself what the true cost of your purchase really is. Take time to calculate the cost of repairs, the cost of purchasing extra furniture and fitting, the cost of maintenance and so on before you take the buying step.
7. Use the Right Property Finders
Gone are the days where knocking down the doors of real estate agents was the only way to know how much a home was selling for.
There is an overflow of property search sites out there. This is where tolet.com.ng comes on top! As we provide you with the most affordable properties not just in Lagos alone but nationwide. Let’s lead you to your dream home! Visit us at tolet.com.ng today!
Overall, don’t listen when people say a 50-something is too old to buy a home because that is untrue. All you have to do is be patient, keep in mind all the factors (the ones listed above and others) you are most likely to face and then time your decision-making accordingly. Also, make sure you don’t get stuck making mortgage payments in your 80’s!.