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Building Your Forever Home in Retirement?

Are you in retirement and thinking of building your forever home from scratch? If so, I have 3 things for you to consider!

FIRST THING TO CONSIDER: Are you in good health and can easily go through the stress and time involved with building a home?  You have to find the right lot, find the right builder to build at a cost you can afford, find the floor plan that fits the lot and your needs, and make all kinds of selections in finishes for the home. This seems like a funny question to ask yourself, but I have seen people that want to look at lots to build and I think to myself they really should be looking for a new build already built or renovated existing home because their health is so poor.  I had a client once that was pulling an oxygen tank with them and it was really stressful for them to get around.  

SECOND THING TO CONSIDER: As a general rule, if you are building a home from scratch, you need to be prepared for something called sunk costs when it comes time for you to sell the home. When given the opportunity to build from scratch, people generally add things due to their personal preferences which may or may not appeal to the general public, and that is considered a sunk cost. Have you ever gone into a resale home and they did something very unique to the home and you thought now why would someone do that? Personal preferences can include things like a special tile you really like but in the end really isn’t something that appeals to the masses or could have gone out of style by time you sell the home.

THIRD THING TO CONSIDER: Having your new build serve as an income stream for you. I had a client that I helped selling her ranch, brick home that needed updating, but she wasn’t up for living through a renovation project. So she took the $150k that she received from the sell, and put it towards a new build duplex for $300k. They essentially put their $150k to pay off their side of the duplex, and then rented the other side out, earning more than the cost of the remaining $150k on the mortgage, creating income for them to live off of.  Another friend built a home at the lake that was 2 levels.  They lived on the main level but had the home designed with a kitchen downstairs, as well as a living room and 3 bedrooms 2 bathrooms with a private separate entrance.  They airbnb this portion of the home out when they are traveling.  Visitors only have access to the bottom portion of the home, the pool, and the lake.  This idea makes a great Masters Rental, AND they get a big bump of income from that single event!

I hope this video has given you some things to consider or maybe even sparked some other ideas for your particular situation.  If you would like a free consultation to help evaluate what may make most sense for you, feel free to give me a call.  My team and I are on stand by 7 days a week to help you take the smoother road to sold.

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