Want to buy a retirement home? You must consider these risks to not lose money

Want to buy a retirement home? You must consider these risks to not lose money

“Many of us often buy a home, but ultimately end up realising that it’s too costly for us to sustain. We pursue our ‘dream home’ only to find the costs of ownership and maintenance are preventing us from achieving other goals. This is why it’s crucial to consider all your options before investing," he said.

For instance, buying a retirement home before you retire means having to make mortgage payments or pay for maintenance costs while still working, which can be a challenge if any other unexpected expenses arise, added Shaan.

“When planning to buy a home, you must factor in your insurance, utilities, and maintenance of the house. Moreover, if you tend to move around often, owning a home can equate to spending a lot of money (on broker’s fees and closing costs) that you don’t have to,” he added.

Ultimately, the decision to buy a retirement home before retiring should be based on a realistic assessment of your priorities as preferences evolve

- Mohammad Shaan, Dubai-based wealth advisor



Risk #2: What you want in a home now, may not be what you want when you retire

Another potential risk that Shaan flagged is that preferences change over years,