If you’re 50 and want to buy a house, you probably still have many years of work ahead of you, which means more money to buy a house.
It’s not uncommon for a 50-something to wonder if they’re too old to buy a home at their age. The answer is resounding no! A few years ago, the general assumption was that most, if not all, people retire around age 60 or 65, which is no longer the case, as many people that age are still working.
That is, if you are 50 and want to buy a house, you probably still have many years of work ahead of you, which means more money to buy a house. This does not necessarily imply that you should drop the oars because you are not as young as you used to be.
This means that your financial decisions will be more complicated in some ways and easier in others. If you are thinking of buying a house at age 50, you should look at 6 things to consider when buying a house at age 50.
Here are the 6 things to consider when buying a house at age 50
1. What size house do you really need?
Don’t get so caught up in the excitement of finally being able to afford your dream home that you forget to consider the possibility that you don’t need such a big house.
The size of your home is an important factor to consider. If your children are gone or will be leaving soon, you should consider whether you want to clean, maintain, or decorate multiple rooms that you won’t be using, especially as you get older. On the other hand, grandchildren can be a compelling reason to buy a bigger house, and if you had children later in life, you may still have toddler years at home.
2. What about the mortgage?
If you’re in your 20s or 30s, you can always consider a 30-year mortgage plan, but if you’re in your 50s, you should think twice. You don’t want to be making payments as a senior. Consider a 15-year mortgage or one of the other advantageous types your bank offers. Also, if you intend to stay in your current home after you retire, try to pay off the mortgage while you’re still working.
Mortgages require a lot of number crunching, and you may also need the help of a trusted adviser. When considering a mortgage, be patient enough to carry out proper due diligence and research on the various mortgage institutions available.
3. Where would you like to live?
Everyone understands that location affects home prices, but few understand the difference it makes. Buying a house on Banana Island, for example, is more expensive than buying a house on Yaba.
You may not be looking to make such a drastic change, but you can often find surprisingly large life differences within your own neighborhood. A wealthy neighborhood can be beautiful, but you need to consider whether the cost is worth it to you.
You should also research the area in which you intend to live. How frequent is a crime? What happens when it rains in the street? Where is the nearest police station? You need to stay alert and ask as many questions as possible until you are convinced that this is the right place for you.
4. How do you feel physically?
If you or a close family member is sick, you may need all the money you can get to cover the costs. You can’t predict health problems, so make sure you have enough money set aside for medical emergencies. This is a compelling reason to avoid excessive spending on housing.
5. How often do your children visit?
If the size of your family necessitates the need for multiple rooms, a larger home may be preferable. If your children are away and only visit once or twice a year, you may not need to buy a big house to avoid having empty rooms.
6. How much does it really cost to buy?
You should consider what the actual cost of your purchase is. Before buying, take the time to calculate the cost of repairs, the cost of buying additional furniture and accessories, the cost of maintenance, etc.